Unbundled Access

As part of the rules to ensure competition in the provision of local telecommunications services, the Incumbent Local Exchange Carriers (ILECs) must provide access to network elements on an unbundled basis to any requesting competitor. These unbundled network elements must be offered at any technically feasible point and at rates, terms, and conditions that are just, reasonable, and non-discriminatory. These rules are described in the Telecommunications Act of 1996, which is enforced by the Federal Communications Commission (FCC).

Network elements encompass everything that is required to implement telephone service, including loops, transport, signaling and call-related databases, and Operations Support Systems (OSSs). Unbundled access is important because it gives competitive local service providers economical access to the network elements that they need in order to provision and support a competitive service, without being forced to buy network elements that they do not need.

According to the competitive guidelines that are established in the Telecommunications Act of 1996, the network elements should be available on a selective basis and not as part of a package deal. Such bundling inflates the operating costs of competitors (and ultimately, the price that customers must pay for services). The incumbent telephone companies challenged the FCC on this issue and on other issues, which culminated in the United States Supreme Court decision affirming the authority of the FCC to carry out the pro-competition provisions of the Telecommunications Act. The Supreme Court, however, also advised the Commission to re-evaluate the standard that it...