CLEC

(pronounced see-lek) Stands for Competitive Local Exchange Carrier. A CLEC is a telephone company that competes with the already established local telephone business or Incumbent Local Exchange Carrier (ILEC) such as a Regional Bell Operating Company (RBOC) by providing its own network and switching. North American Telecom and Winstar Communications are examples of CLECs. With the passage of the Telecommunications Act of 1996, there has been an explosion in the number of CLECs, as the Act was intended to promote competition among both long-distance and local phone service providers. Applying for CLEC status is a very tedious and complex process, but can be very beneficial. The Act states that any telecommunications services ILECs offer at retail, must be offered to CLECs at a wholesale discount. Also important for CLEC's are the availability of unbundled network elements or UNEs. For CLECs the most important UNE available to them is the local loop, which connects the ILEC switches to the ILEC's present customers. With the local loop, CLECs will be able to connect their switches with the ILEC's switches, thus giving them access to ILEC customers. CLEC status is very beneficial for ISPs(Internet Service Providers), who may easily get access to the copper loops and other switching elements necessary to provide xDSL services.