A CLEC, or competitive local exchange carrier, is a phone company that competes with the incumbent in a local area. The FCC rule defines it by what it provides: some or all of the interstate exchange access used to send traffic to or from an end user, and not the incumbent itself.
CLEC, defined: a local exchange carrier that provides some or all of the interstate exchange access services used to send traffic to or from an end user, and does not fall within the definition of incumbent local exchange carrier in 47 U.S.C. 251(h). Source: 47 CFR 61.26(a)(1).
Why the term exists
Under the Telecommunications Act of 1996, the incumbent is the carrier that was providing telephone exchange service in an area on February 8, 1996, or a successor to it. Other carriers were then allowed to compete. The term CLEC is how regulators and carriers tell these newer providers apart from the incumbent.
CLEC vs ILEC
| CLEC | ILEC (incumbent) | |
|---|---|---|
| Position | Competes in the local market | Established local carrier, defined by the 1996 statute |
| Defined in the rule as | A local exchange carrier that is not the incumbent under 47 U.S.C. 251(h) | Incumbent local exchange carrier under 47 U.S.C. 251(h)(1) |
| Typical role | New entrant, carrier or reseller | Carrier that provided telephone exchange service in the area on February 8, 1996, or its successor |
The rule uses the incumbent as the reference point. A CLEC is defined by not being the incumbent, and by providing exchange access services.
What a CLEC does
A CLEC carries calls for end users, exchanges traffic with other carriers, and provides interstate exchange access. Those services are what move a call from one network to another. The FCC's switched access rules set the terms for much of that work.
Why it matters for business buyers
Most businesses never choose a CLEC directly. They buy from a provider that buys from a carrier. The carrier a provider uses affects call routing, quality and cost. If you are comparing wholesale options, the wholesale VoIP guide explains how traffic moves through the carrier layer, and the wholesale voice termination guide explains how termination is priced and routed.
Where to go next
For how carriers connect to each other, see peering vs transit. For route types used in carrier traffic, see what are CC routes.
