Access charge

Access charge is a term used in telecommunications to refer to the fee charged by a local exchange carrier (LEC) for the use of its local network. The access charge is typically paid by long-distance companies to connect their networks to the local network. This fee is regulated by the Federal Communications Commission (FCC) in the United States.

History

The concept of access charges was introduced in the Telecommunications Act of 1996 as a way to promote competition in the telecommunications industry. Prior to this, local exchange carriers had a monopoly on local service and could charge whatever they wanted for access to their networks. The Act required LECs to provide access to their networks at reasonable rates, terms, and conditions.

Calculation

The access charge is calculated based on several factors, including the cost of the local network, the volume of traffic, and the distance of the call. The FCC sets a maximum allowable access charge, but the actual charge can vary depending on the agreement between the LEC and the long-distance company.

Impact

Access charges have a significant impact on the cost of long-distance calls. They can make up a significant portion of the total cost of a call, especially for calls that cross multiple local exchange areas. This has led to criticism that access charges are a barrier to competition in the long-distance market.

See also

• Local exchange carrier
• Federal Communications Commission
• Telecommunications Act of 1996