What does "local access" mean?
Why are there different service providers for local and long distance
   services?
What are the different charges on my phone bill?
My telephone bill includes charges from several different companies.
   What’s going on?
I get separate bills for local and long distance services. How can I get
   all my services from a single company?
What is re-billing or re-selling of local services?
What is a facilities-based provider?
What is a LATA?
What is LEC?
What is an ILEC?
What is a CLEC?
What is an RBOC?
Can I choose from different kinds of local calling services?
What is Centrex?
What is DID?
How did the Telecommunications Act of 1996 affect local services?


What does "local access" mean?
Local Access is telephone service that provides calling within the immediate area. This service is provided by Local Exchange Carriers. Local access includes local telephone services and long distance services within your region (LATA). These long distance services are also referred to as intralata, local toll or regional calling.

Why are there different service providers for local and long distance services?
In 1984, AT&T divested several of their local companies because of deregulation. The divestiture settlement prohibits the Regional Bell Operating Companies (RBOCs) from selling long distance services outside their region or "LATA". The FCC did this to ensure that sufficient local competition exists. The result is all "interlata" long distance calls within these territories must be routed to an IntereXchange Carrier (IXCs) such as AT&T, MCI, Sprint, etc. This restriction applies only to RBOCs. Other local providers can and do provide both local and long distance services.

What are the different charges on my phone bill?
Bills for residential and business customers for LEC (Local Exchange Carrier) services include a variety of the following elements. Business customers are generally charged higher rates for local services than residential customers.

  • Recurring Fixed Charges for Lines, Trunks and Optional Features
  • Usage Charges for Local Calling and Extended Local Calling.
  • Usage Charges for Long Distance Calling.
  • Usage charges for Directory Assistance, Operator and Information    Services.
  • Charges for Directory Advertising
  • Non-recurring Charges Associated with Installation or Change of    Services, and with Rate Changes.
  • Taxes, Surcharges and Fees Imposed by Various Government Bodies

    In addition, your local provider may function as a billing agent for other companies such as long distance providers, directory companies, Internet providers, etc. In such cases the charges from those companies will be included as a separate section with your local telephone bill.


    My telephone bill includes charges from several different companies. What’s going on?
    Local exchange companies often function as billing agents for long distance providers, directory companies, Internet providers, etc. In such cases the charges from those companies will be included as a separate section with your local telephone bill. (NOTE: Your local telephone service cannot be disconnected should you withhold payment from any of these other companies because of billing questions or disputes.)


    I get separate bills for local and long distance services. How can I get all my services from a single company?
    For now, if you want a single bill you’ll have to talk to a provider other than Ameritech, Bell Atlantic, BellSouth, Pacific Bell, Southwestern Bell or US WEST; they are prohibited from offering both local and interlata services to customers in their basic service territories. They will, however, begin offering interlata services as soon as the FCC deems they have complied with requirements of the Telecommunications Act of 1996. This has allowed other companies to compete in the local access provider market.


    What is rebilling or reselling of local services?
    These terms refer to a new local service provider that purchases services from Incumbent Local Exchange Companies such as Ameritech, Bell Atlantic, BellSouth, Pacific Bell, Southwestern Bell, U S WEST, GTE, Sprint United and SNET and resells them to you at a discount under the tariffed rate of the incumbent company (typically 5-10%).


    What is a facilities-based provider?
    Facilities-based refers to a service provider that offers services via its own switching stations. Since they have their own equipment, they do not simply resell services of other companies, but are the actual service provider.

    What is a LATA?
    LATA stands for Local Area Transport Area and is a designated, geographical area wherein Local Exchange Carriers provide long distance calling service. These areas are often called “local-toll” or “regional toll” calling areas.“ The United States is divided into 198 LATAs.

    What is a LEC?
    LEC stands for Local Exchange Carrier and refers to local telephone company that provides local services and intralata long distance service.

    What is an ILEC?
    ILEC stands for Incumbent Local Exchange Carrier. These are companies that were providers of local telephone services in defined territories prior to deregulation in 1996. This includes companies such as Ameritech, Bell Atlantic, BellSouth, Pacific Bell, Southwestern Bell, U S WEST, GTE, Sprint, SNET and many smaller companies.

    What is a CLEC?
    CLEC stands for Competitive Local Exchange Carrier. They are local telephone companies that compete with the main local phone company. They may be resellers of a facilities-based or other provider or they may provide their own facilities.

    What is a RBOC?
    RBOC stands for Regional Bell Operating Companies. These are companies that were divested from AT&T in 1984. These companies are also known as "Baby Bell" Companies and are considered ILEC's. Today they include Ameritech, Bell Atlantic, Bell South, Pacific Bell, Southwestern Bell, and US WEST. They provide local telephone services to the majority of users in most states.

    Can I choose from different kinds of local calling services?
    Local service providers may offer more than one of the following classes of service. Ask what’s available to you. If there’s a choice, get the actual rates and apply them to the way you use your telephone system.

    Measured-Rate Service is a plan that charges for each completed outgoing local call. Charges are made based on the call duration and distance between calling points. It incurs a lower fixed monthly charge. There may also charges for local calls based on the time, duration and distance of the calls. This option is preferable if you make a large number of local calls but each is of short duration.

    Message-Rate Service is a plan that charges for each and every completed outgoing local call regardless of the duration. A certain number of local calls may be included with the plan, but once they are used, there is a charge for each local call. This option is preferable if you make a limited number of local calls but each is of long duration.

    Flat-Rate Service is a plan that allows unlimited local calling for a certain fee. It incurs greater monthly charges for local lines.

    What is Centrex?
    Centrex refers to a class of business services that bundles many special capabilities into a single plan. The switching equipment is in the phone company's central office. You don't own it; you only lease its capabilities. Simple plans may add feature packages onto standard business lines and sophisticated plans may offer direct dialing from outside telephones to internal stations, intercommunications, and other functions such as Call Forwarding and Voice Mail, without the necessity of complex customer-owned equipment.

    What is DID?
    Direct-Inward-Dialing refers to a feature of business lines that enables dialing directly from outside telephones to internal station numbers without an attendant's assistance. This is accomplished via special trunks and customer-owned phone equipment.

    How did the Telecommunications Act of 1996 effect local services ?
    The Telecommunications Act of 1996 stipulated that RBOC’s were required to not only allow but to facilitate competition within their local access markets. It established guidelines which, when met, will allow Ameritech, Bell Atlantic, Bell South, Pacific Bell, Southwestern Bell and US WEST to offer interlata long distance services to customers within their local exchange areas.





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