Total element long-run incremental cost (TELRIC) is a calculation method that the United States Federal Communications Commission (FCC) requires incumbent local exchange carriers (ILECs) to use to charge competitive local exchange carriers (CLECs) for interconnection and colocation, effectively imposing a price ceiling. A variant of long-run incremental cost (LRIC), it "measures the forward-looking incremental cost of adding or subtracting a network element" from a hypothetical system (that is efficient and uses current technologies). This allows the incumbent to recover a share of the fair value of their inputs in the long run. [1]
The FCC used the telecommunications term for the first time when it interpreted TELRIC's role under the 1996 Telecommunications Act, which had been based on a higher level of ILEC unbundling. In short, the act assumed that "ILECs would have to lease components of the local telephone network to prospective competitors", who would then "expect to blend these components together, possibly using their own elements to offer appropriate services to end users". [2]
TELRIC pricing is not without controversy, as some economists have argued that TELRIC prices reduce the incentives of ILECs and CLECs to make investments in existing facilities and new technologies. [3]
Local loop unbundling is the regulatory process of allowing multiple telecommunications operators to use connections from the telephone exchange to the customer's premises. The physical wire connection between the local exchange and the customer is known as a "local loop", and is owned by the incumbent local exchange carrier. To increase competition, other providers are granted unbundled access.
Local exchange carrier (LEC) is a regulatory term in telecommunications for the local telephone company.
Enhanced 911, E-911 or E911 is a system used in North America to automatically provide the caller's location to 911 dispatchers. 911 is the universal emergency telephone number in the region. In the European Union, a similar system exists known as E112 and known as eCall when called by a vehicle.
The Telecommunications Act of 1996 was the first significant overhaul of United States telecommunications law in more than sixty years, amending the Communications Act of 1934. The Act, signed by President Bill Clinton, represented a major change in American telecommunication law, since it was the first time that the Internet was included in broadcasting and spectrum allotment.
A dark fibre or unlit fibre is an unused optical fibre, available for use in fibre-optic communication. Dark fibre may be leased from a network service provider.
A competitive local exchange carrier (CLEC), in the United States and Canada, is a telecommunications provider company competing with other, already established carriers, generally the incumbent local exchange carrier (ILEC).
An incumbent local exchange carrier (ILEC) is a local telephone company which held the regional monopoly on landline service before the market was opened to competitive local exchange carriers, or the corporate successor of such a firm.
Local number portability (LNP) for fixed lines, and full mobile number portability (FMNP) for mobile phone lines, refers to the ability of a "customer of record" of an existing fixed-line or mobile telephone number assigned by a local exchange carrier (LEC) to reassign the number to another carrier, move it to another location, or change the type of service. In most cases, there are limitations to transferability with regards to geography, service area coverage, and technology. Location Portability and Service Portability are not consistently defined or deployed in the telecommunication industry.
CLLI code is a Common Language Information Services identifier used within the North American telecommunications industry to specify the location and function of telecommunications equipment or of a relevant location such as an international border or a supporting equipment location, like a manhole or pole. Originally, they were used by Bell Telephone companies, but since all other telecommunications carriers needed to interconnect with the dominant Bell companies, CLLI code adoption eventually became universal. CLLI codes are now maintained and issued by iconectiv, which claims trademarks on the names "Common Language" and "CLLI".
A naked DSL, also known as standalone or dry loop DSL, is a digital subscriber line (DSL) without a PSTN service — or the associated dial tone. In other words, only a standalone DSL Internet service is provided on the local loop.
In telecommunications, interconnection is the physical linking of a carrier's network with equipment or facilities not belonging to that network. The term may refer to a connection between a carrier's facilities and the equipment belonging to its customer, or to a connection between two or more carriers.
In a hierarchical telecommunications network, the backhaul portion of the network comprises the intermediate links between the core network, or backbone network, and the small subnetworks at the edge of the network.
Unbundled network elements (UNEs) are a requirement mandated by the United States Telecommunications Act of 1996. They are the parts of the telecommunications network that the incumbent local exchange carriers (ILECs) are required to offer on an unbundled basis. Together, these parts make up a local loop that connects to a digital subscriber line access multiplexer (DSLAM), a voice switch or both. The loop allows non-facilities-based telecommunications providers to deliver service without having to lay network infrastructure such as copper wire, optical fiber, and coaxial cable.
LRIC or LRAIC is an abbreviation for "Long-Run Average Incremental Cost". A LRIC model is often used in telecommunications regulation to determine the price paid by competitors for services provided by an operator with significant market power, usually the incumbent.
Unbundled access is an often practiced form of regulation during liberalization, where new entrants of the market (challengers) are offered access to facilities of the incumbent that are hard to duplicate. Its applications are mostly found in network-oriented industries and often concerns the last mile.
In local telephone networks, a loop management system (LMS) is a kind or a part of network management system intended to maximize local loop control. Sometimes it is referred to as local loop management (LLM) or copper loop management (CLM).
Traffic pumping, also known as access stimulation, is a controversial practice by which some local exchange telephone carriers in rural areas of the United States inflate the volume of incoming calls to their networks, and profit from the greatly increased intercarrier compensation fees to which they are entitled by the Telecommunications Act of 1996.
Verizon Communications Inc. v. Federal Communications Commission, 535 U.S. 467 (2002), is a United States Supreme Court case in which Verizon Communications argued that the FCC had an unreasonable way for setting rates for leasing network elements. It held that the FCC can require state commissions to set the rates charged by incumbents for leased elements on a forward-looking basis untied to the incumbents' investment and that the FCC can require incumbents to combine elements of their networks at the request of entrants.
USTAv.FCC is the 2004 court case in which the Washington, D.C., Circuit Court of Appeals vacated the Federal Communication Commission's Triennial Review Order (TRO). The court's decision is based on the Telecommunications Act of 1996 section 251 which defines unbundled network elements (UNEs) for incumbent local exchange carriers and competitive local exchange carriers.
Net bias is the counter-principle to net neutrality, which indicates differentiation or discrimination of price and the quality of content or applications on the Internet by ISPs. Similar terms include data discrimination, digital redlining, and network management.