A CLEC, or Competitive Local Exchange Carrier, refers to a telecommunications company that competes with incumbent local exchange carriers (ILECs) in providing local telephone services. It is a term primarily used in the United States to distinguish these competitive carriers from the dominant telecommunications providers in a specific geographic area.
A CLEC operates in direct competition with the ILEC, offering similar local telephone services such as voice calls, data transmission, and other communication services. These carriers typically utilize their own network infrastructure or lease network facilities from other providers to deliver their services to residential and business customers.
CLECs emerged as a result of regulatory changes in the telecommunications industry, particularly with the implementation of the Telecommunications Act of 1996 in the United States. This act aimed to foster competition and open up local telephone services to new market entrants, leading to the rise of CLECs that introduced competitive pricing, innovative service offerings, and enhanced customer options.
By fostering competition, CLECs have contributed to increased choice, improved service quality, and lower prices for consumers. They have also played a crucial role in driving technological advancements and innovation in the telecommunications industry as they compete to gain market share from the established ILECs.
Overall, a CLEC is a telecommunications company that competes with incumbent providers to offer local telephone services, leveraging their own or leased network infrastructure.
