LOCAL SERVICES DEREGULATION AND CHANGE AFTER 1996

With the breakup of the Bell System, long distance services were deregulated and began a path to a competitive marketplace. AT&T remained under greater restrictions than other common carriers. Regulations prohibited them from providing local service of any kind and they continued to be subject to tariff processes administered by state PUCs and the FCC.

The RBOCs were restricted as well. They were prohibited from offering any kind of inter-LATA service with three exceptions, the North Jersey LATA, an area on the border between Newark and New York; the South Jersey LATA between Philadelphia and Camden; and the DC LATA covering DC, and immediate surrounding areas in Maryland and Virginia.

With passage of the 1996 Telecom Legislation, the RBOCs were given a path to compete in the long distance market in return for opening up their networks to re-sale by third parties. This legislation defined and named entities in the local exchange business. The RBOCs were branded incumbent local exchange carrier (ILEC), and all others were named competitive local exchange carrier (CLEC).