The words CLEC (pronounced see-leck) or ILEC (pronounced eye-leck) are often used when referring to Internet service providers or telephone companies. The short explanation here is the U.S. Government passed the Telecommunications Act of 1996 requiring large telco companies (AT&T, Verizon, etc) to allow other companies, called CLECs (Competitive Local Exchange Carriers) to use their buried wiring (fiber or copper) to provide service.

This basically means that if someone wanted to start their own ISP, they would not actually have to purchase fiber-optic cable and have a contractor bury it. They would simply have to sign up with a an ILEC (Incumbent Local Exchange Carrier) and pay a negotiated rate to use their copper or fiber. Data would then be transmitted back to the CLECs data center or location where they house equipment to provide a service. This sounds much easier than it actually is.

What are the advantages and disadvantages of using a CLEC? CLECs are usually smaller companies. They may be able to provide a more customized level of service than the big players. Pricing is usually very competitive among both CLEC vs. CLEC and CLEC vs. ILEC. A disadvantage is that CLECs must wait for the ILECs to setup the fiber or copper before they can provide service to a customer. This means that ILECs have the ability to provider service faster. CLECs are also required to use their own equipment which can be a second possible point of failure.

Overall, CLECs have made the Internet better. They encourage competition, allow smaller companies to provide niche services and create more jobs in the private sector.