To: H. Wai who wrote (31826 ) 1/23/1998 4:58:00 PM From: pat mudge Respond to of 61433
[CLEC] <<<CLEC (Competitive Local Exchange Carrier) An organization offering local telephone services. Although most CLECs are established as a telecommunications service organization, any large company, university or city government has the option of becoming a CLEC and supplying its own staff with dial tone at reduced cost. It must have a telephone switch, satisfy state regulations, pay significant filing fees and also make its services available to outside customers. This was all sanctioned by the Telecommunications Act of 1996. Contrast with ILEC. >>> H.Wai -- To my knowledge all RBOCs are applying to the FCC to also become CLECs. GTE's is already in place. This is their way of getting around having to offer equal services to competitors at regulated rates as is required of an ILEC. Having followed GTE for several years, I realize how tricky the process is. The ILEC cannot let the CLEC know what it's doing and the government's initiated strick rules governing each. An employee working for their ILEC, for example, will be asked to leave the room if there's a CLEC debate on the table. Because of FCC rulings, CLECs can install or update, such as the case may be, expensive highspeed equipment and have no threat of having to offer it to whoever comes along at less than competitive rates. Whereas if an ILEC were to upgrade and a new guy comes to town and wants to use their unbundled copper, they (ILEC) would have to give it to them at rates below which it would pay them to install the equipment. Or so the argument goes. Once CLECs begin stealing market share with highspeed offerings, watch the landscape change. You asked which were the largest. I'm not sure, but wasn't Teleport --- the recent AT&T acquisition --- one of the largest? I'd have to check on numbers to know how the others rank. Hope this helps. Pat