Industry Glossary
1996 ACT
The Telecommunications Act of 1996. Federal legislation that opened the local exchange telecommunications marketplace to competition on a nationwide basis.
Access Charge
A fee charged to subscribers or other telephone companies for the use of local exchange facilities, especially for access to these facilities to provide long-distance service.
Bandwidth
The capacity of a telecom line to carry signals. Bandwidth is both the total frequency spectrum, in hertz or cycles per second, that is allocated or available to a channel, as well as the amount of data that can be carried by a channel, in bits per second [bps]. For analog transmission, it is measured in cycles per second; for digital transmission, it is measured in bits per second.
Broadband
A term used in evolving digital technologies in which multiple signals share the bandwidth of a medium, such as fiber-optic cable. This allows the transmission of voice, data and video signals over a single medium.
Communications Act of 1934
The first communications legislation that established the FCC to regulate interstate and foreign communications by wire or radio. It sets forth the duties and responsibilities of common carriers engaged in wire or radio communications, all of which are subject to FCC regulation. This act also established the principal of universal service.
CLEC - Competitive Local Exchange Carrier
A company that offers local exchange services in competition with the ILEC, or incumbent local exchange carrier, in a particular area or telephone exchange.
Deregulation
In 1984, AT&T no longer was allowed to provide local service, nor were the Bell companies allowed to provide interLATA, long distance information service nor could they manufacture equipment. In 1996, the barriers preventing competitive entry into the local exchange market were lifted, thus allowing broadcast cable, telephone, utilities, etc., to compete equally.
DSL – Digital Subscriber Line
A technology for bringing high-bandwidth information to homes and small business over ordinary copper line.
DTV – Digital Television
A new technology for transmitting and receiving broadcast television signals. DTV provides clearer resolution and improved sound quality.
E911
A location technology that enables mobile, or cellular phones to process 911 emergency calls and enable emergency services to locate the geographic position of the caller.
EAS - Extended Area Service
An expansion of the local calling area for a community to include one or more adjoining exchanges, usually for an additional charge.
FCC - Federal Communications Commission
Fiber Optics
Communications technology that uses thin filaments of glass or other transparent materials. Fiber optic technology offers extremely high transmission speed, allowing for data-intensive services such as video-on-demand.
Iowa Code § 476.1D(1)"c" (f/k/a HF 277)
The 2005 amendments to Iowa law that deregulated retail rates for most local exchange communications services provided by ILECs except for single line flat-rated residential and business rates. Among other things, the amended statute also requires that when markets are considered for deregulation, the Board must weigh factors that include the presence or absence of: wireless communications services, cable telephony services, Voice over Internet Protocol (VoIP) services, and economic barriers to the entry of competitors or potential competitors in that market.
ILEC – Incumbent Local Exchange Carrier
The telecommunications company, or its successor, that offered local exchange service in a particular community prior to passage of the 1996 Act.
ITC – Independent Telephone Company
Small, rural telephone companies were founded to bring telephone service to their communities because the large companies did not want to invest in high-cost areas that had significantly less customers. Iowa has the largest number of ITCs in the country, at approximately 150.
INS – Iowa Network Services
Established in 1986 by 127 independent telephone companies, INS deployed a state-wide fiber optic network that connects 150 rural ITCs and their customers to a Central hub in Des Moines for centralized equal access.
IUB - Iowa Utilities Board
ISP – Internet Service Provider
A company that provides customers access to the Internet, Web hosting and/or other related services.
Landline
Traditional wired phone service.
LEC – Local Exchange Carrier
Any telecommunications company that offers local telephone service.
Local exchange service
Telephone service furnished between customers or users located within an exchange area.
NECA – National Exchange Carrier Association
NECA was established by the FCC to act as an association for LECs. NECA prepares common tariffs and administers the revenue pool among its members for access provided to interexchange long-distance carriers.
Network
Any connection of two or more companies that enables them to communicate. Networks may include transmission devices, servers, cables, routers and satellites. The phone network is the total infrastructure for transmitting phone messages.
NANP - North American Numbering Plan
The NANP is the numbering plan for the Public Switched Telephone Network for Canada, the U.S. and its territories, and the Caribbean.
NPA – Numbering Plan Area
The term is synonymous with “area code.” In Iowa there are currently five NPAs: 319, 515, 563, 641, and 712.
ROR – Rate of return
The percentage of net profit that a telephone company is authorized to earn on its rate base.
POTS – Plain Old Telephone Service
Refers to traditional telephone or dial tone service.
Rate if Return
The percentage that a regulated telephone company, an interexchange carrier or a public utility company is authorized to earn on its capital investment for services provided.
RUS – Rural Utilities Service
A rural lending system made up of the Rural Electrification Administration and other similar programs.
SLC – Subscriber Line Charge
A monthly access charge paid by telephone subscribers that is used to compensate the local telephone company for a portion of its costs to install and maintain telephone wires, poles and all other facilities.
Telecommunications Act of 1996
Enacted and signed into law by President Bill Clinton in February 8, 1996, this act provides a comprehensive reform of the Communications Act of 1934. It was designed to promote competition among wireless and wireline carriers.
Telephony
A term used to describe the science of transmitting voice over a telecommunications network.
Traffic-sensitive Costs
Costs that are not fixed, but vary according to use.
UNE – Unbundled Network Element
Each of the various services and facilities that goes into providing local telephone service, including the wire loop that serves the customer and switching services.
UNE-P – Unbundled Network Element-Platform
The combination of all of the UNEs necessary to provide local telephone service. This typically includes the loop, port, switching, and local transport.
Universal Service
The government’s aim, as stated in the Communications Act of 1934, of providing phone service to everyone, regardless of their distance from the switch or ability to pay. Expanded under the Telecommunications Act of 1996, universal service also encompasses a subsidy to public schools, libraries and rural health care facilities for telecom services.
Universal Service Cap
A limit on the amount of universal service funding available to local exchange carriers.
VoIP – Voice over Internet Protocol
A method of changing voice calls into data packets and sending them on the Internet or a similar network. Near the destination, they are reassembled and delivered like traditional calls.