Competitive Local Exchange Carriers (CLEC) in California have been around since the Telecommunications Act of 1996. They compete with Incumbent Local Exchange Carriers (ILECs.) ILECs are the carriers that were in place before deregulation. Most are Regional Bell Operating Companies that were created after the break up of AT&T in the 1980s.

The Telecommunications Act of 1996 enabled California CLECs to offer long distance service in exchange for allowing competition for local phone service. An ILEC company is usually your default carrier and competes with CLECs for phone service and other offerings.

Most Competitive Local Exchange Carriers use rack space and lines provided by the ILEC and resell the services to local customers, although some larger companies host their own lines. Here is some information about CLECs in California:

1. Competitive Local Exchange Carriers in California range in size from smaller local companies to national providers.

2. CLECs in California can offer savings through bundled services and discounts.

3. California CLECs may also offer savings on other services like DSL and other high speed Internet access.

Action Steps
The best contacts and resources to help you get it done

Look at large California CLECs

Many competitive local exchange carriers are large telecommunications companies that operate throughout the United States. These companies often offer lower prices as well as reliable service.

I recommend: Verizon and SBC (AT&T) have the authority to compete with Incumbent Local Exchange Carriers' territories throughout the state. Check with each company to find out if they provide service in your area. Qwest is another large CLEC that operates in California.

Consider smaller California local exchange carriers

A smaller company can offer personal service and a great deal.

I recommend: Southern California Telephone offers bundled packages and single services. SureWest Communications serves areas of northern California. The technicians can assist in designing a telecommunications system to meet your needs.

Find a California CLEC directory

It's a good idea to shop around and get as many prices as possible before making a choice. To find more options, look for listings of local Competitive Local Exchange providers.

I recommend: The Federal Communications Commission and the California Public Utility Commission offer lists of California ILECs and CLECs.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  While smaller CLEC companies in California may offer great rates, their control over system outages may be limited. Reliable phone service is important to any business, so make sure to get references and check with other customers before committing to a CLEC.
• •  Determine whether price or features are the most important factor in choosing a CLEC.
• •  Find a company that will grow with your needs. Even if you don't need some services now, they may be useful in the future. Find out if you have the ability to upgrade to more advanced options down the road.