Glossary > Local Exchange Carrier (LEC)

Local Exchange Carrier (LEC)

Author: Anagha Ravi

Published: June 10, 2025

Updated: June 11, 2025

Each market, or LATA, has one particular Local Exchange Carrier, sometimes ILEC (Incumbent Exchange Carrier) that previously provided the ‘traditional’ phone service of delivering physical copper wire to each residence from their CO (Central Office). Today, the LEC more so serves as the party who owns the local trunking/switching infrastructure. In order to deliver calls to a particular area, a CLEC needs to be connected with a LEC (see ICA) to ultimately deliver the calls.

Explaining LECs:

What are the key functions and services provided by Local Exchange Carriers?

LECs are primarily responsible for:

Local voice service: Facilitating local telephone calls within a designated geographic region.
Call switching: Routing calls between local users and sometimes to other networks.
Local loop management: Maintaining the “last mile” connections to customers.
Providing access to long-distance carriers: LECs interconnect with long-distance carriers (Interexchange Carriers or IXCs) to enable calls beyond local boundaries.
Data services: Many LECs have expanded to offer DSL, fiber optic Internet, and other broadband services over their local networks.

What is the difference between Incumbent Local Exchange Carrier (ILEC) and Competitive Local Exchange Carrier (CLEC)?

The terms ILEC and CLEC differentiate types of Local Exchange Carriers based on their market presence:

Incumbent Local Exchange Carrier (ILEC): These are the originally established local telephone companies that owned the infrastructure before telecom deregulation. They often have extensive legacy networks and substantial market share in their regions.
Competitive Local Exchange Carrier (CLEC): CLECs are newer companies that entered the market after deregulation, offering alternatives to consumers. They may lease infrastructure from ILECs or build their own to compete on price, technology, and service offerings.

Both ILECs and CLECs operate as LECs delivering local exchange services, but their origins and network ownership differ.

How does the Local Exchange Carrier (LEC) support number portability?

One crucial regulatory requirement for LECs is compliance with local number portability (LNP), allowing customers to keep their phone numbers when switching from one service provider to another. LECs coordinate closely with other carriers to implement number porting and maintain seamless service during transitions. This capability helps drive competition and consumer choice in the local telecom market.

What types of network technology do Local Exchange Carriers use?

LECs employ various technologies to build and operate their local exchanges, including:

Copper twisted pair wiring: Traditional telephone lines physically connecting customers.
Fiber optic cables: Offering higher bandwidth for modern voice and data services.
Digital switching equipment: For efficiently routing calls electronically.
DSL and other broadband access technologies: Enabling high-speed Internet over existing phone lines.

Technology adoption varies depending on the carrier’s investment strategy, region served, and customer demand.

What regulations govern Local Exchange Carriers and how do they impact service?

LECs operate in a heavily regulated industry. Telecommunications regulations in the United States include:

Federal Laws: For example, the Telecommunications Act of 1996 overhauled the Communications Act of 1934, and is a landmark law that introduced competition by enabling CLECs and requiring ILECs to share infrastructure.
FCC rules: Governing service quality, number portability, interconnection, and consumer protections.
State and Local Laws and State Public Utility Commission (PUC) rules: Many states regulate LEC rates, service standards, and infrastructure investments.

These regulations ensure fair competition, reliable service, and consumer rights within the local exchange market while balancing the need for innovation.

How do Local Exchange Carriers interconnect with long-distance companies?

LECs provide the “local access” portion of a phone call, but for calls traveling outside the local exchange, interconnection with long-distance carriers (IXCs) is essential. This interconnection happens at defined points called local access and transport areas (LATAs). LECs handle connections between customers and IXCs, allowing calls to be routed from local areas across broader geographic regions or internationally.

What are the benefits of Local Exchange Carrier services for businesses and consumers?

Local Exchange Carriers provide key benefits such as:

Reliable local communication: Ensuring voice calls connect clearly and consistently within local areas.
Access to emergency services: Connecting customers efficiently to 911 and other emergency responders.
Facilitation of broadband Internet: Many LECs provide DSL or fiber which supports high-speed data and voice over IP (VoIP).
Customer choice: Especially with the emergence of CLECs, consumers can select from multiple providers offering competitive pricing and innovative services.

What challenges do Local Exchange Carriers face in today’s telecommunications environment?

LECs, both incumbent and competitive, face several ongoing challenges:

Infrastructure modernization: Upgrading aging copper networks to fiber or other advanced technologies requires significant investment.
Regulatory compliance: Navigating evolving federal and state regulations demands resources and agility.
Competition from wireless and VoIP providers: Mobile networks and internet-based communication services increasingly replace traditional local phone usage.
Changing consumer behavior: Customers expect seamless voice and data services, often bundled with mobile and cloud solutions.

Adapting to these challenges is essential for LECs to remain relevant and provide value in a digital, connected world.

How is Bandwidth involved with LECs

Bandwidth operates a CLEC (Competitive Local Exchange Carrier) that provides some or all of the interstate exchange access services used to send traffic to or from an end user. Bandwidth’s communications services include voice, phone numbers, 911 access, and messaging.

What are the benefits of Bandwidth’s involvement with LEC

Bandwidth has a dedicated LNP (Local Number Portability) team that handles the phone number provisioning that we provide to LECs. Bandwidth is focused on automating the process of looking up phone numbers as well as reporting back on portability. This automation allows businesses to provide their customers with the exact date(s) and time(s) their numbers will move which in turn leads to greater customer satisfaction.

Terms related to LEC

The information provided in this glossary definition does not, and is not intended to, constitute legal advice, nor does it necessarily represent Bandwidth's products or business practices. This page is for general informational purposes only.

# a b c d e f g h i j k l m n o p q r s t u v w x y z