'Build-or-Buy' Strategies in the Local Loop

摘要

The nature of competition in local access telecommunications networks is shaped by the "build-or-buy" decisions of the competitive local exchange carriers (CLECs). Facility-based competition takes place when a CLEC "builds" its own infrastructure (e.g., wireless local loop, cable network, fiber-optic network, satellite network), whereas service-based competition takes place when a CLEC "buys" some network elements from the incumbent local exchange carrier (ILEC). Two main ways to achieve service-based competition are resale and local-loop unbundling.