An incumbent local exchange carrier (ILEC) is a telephone company that has been in existence prior to the divesting of AT&T. The term ILEC is also used in reference to the Baby Bells, which are the regional telephone companies that were created when AT&T was divided.
The largest ILECs are Verizon, AT&T, CenturyLink and Frontier. These companies have a large customer base and extensive infrastructure already in place. They also benefit from economies of scale, which allow them to offer lower prices than their smaller competitors.
However, ILECs face several challenges as well. They must constantly invest in upgrading their networks to keep up with changing technology standards. They also face stiff competition from cable companies and other telecommunications providers who are able to offer bundled services at lower prices.
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