History of CLECs
CLECs evolved from the competitive access providers (CAPs) that began to offer private line and special access services in competition with the ILECs beginning in 1985. The CAPs (such as Teleport Communications Group (TCG) and Metropolitan Fiber Systems (MFS)) deployed fiber optic systems in the central business districts of the largest US cities (New York, Chicago, Boston, etc.). A number of state public utilities commissions, particularly New York, Illinois, and Massachusetts, encouraged this competition. By the early 1990s, the CAPs began to install switches in their fiber systems. Initially, they offered a "shared PBX" service with these switches and interconnected with the ILECs as end-users rather than as co-carriers. However, the New York Public Service Commission authorized the nation's first CLEC when it required the New York Telephone (the ILEC) to allow Teleport Communications Group's switches in New York City to connect as peers. Other states followed New York's lead so that by the mid-1990s most of the large states had authorized local exchange competition.
Read more about this topic: Competitive Local Exchange Carrier
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