What is a CLEC?

A Competitive Local Exchange Carrier (CLEC) is a telephone company certified by a state commission to compete with the incumbent local carrier (ILEC) in providing local exchange services.

CLEC status — created by the Telecom Act of 1996 — grants the right to interconnect with the incumbent's network at regulated rates, obtain numbering resources, port numbers, and access wholesale inputs. CLECs may be facilities-based (own switches/fiber), use leased elements, or resell incumbent services.

VoIP providers and ISPs frequently obtain CLEC certification to control their own interconnection, numbers, and costs instead of depending on aggregators.

Ready to explore it? Read Take the Plunge and How to Start a CLEC.