A Long Distance Carrier (Interexchange Carrier, or IXC) is a company that provides telecommunication services enabling long-distance (interexchange) calls. These services extend beyond the local exchanges managed by Local Exchange Carriers (LECs) and were instituted prominently after the breakup of the Bell System (AT&T monopoly) in 1984.
Historical Context and Evolution
The Breakup of Bell System
In 1984, a landmark antitrust lawsuit led to the dissolution of the Bell System, which was monopolizing American telephone services. This divestiture split AT&T’s local exchange services into seven Regional Bell Operating Companies (RBOCs), allowing new entrants to offer long-distance services.
The Rise of IXCs
This deregulation birthed the concept of IXCs, which now facilitated competition in the long-distance market. Companies like MCI, Sprint, and eventually others entered this fray, innovating and driving down costs for consumers.
Types of Long Distance Carriers
National IXCs
National IXCs like AT&T and Verizon offer comprehensive coverage across the entire country, ensuring robust infrastructure and range.
Regional IXCs
These cater to more localized, specific geographic areas but often provide just as competitive, if not specialized, services.
Special Considerations
Regulatory Framework
The regulatory landscape affecting IXCs is complex. The Federal Communications Commission (FCC) oversees them, ensuring they adhere to standards that promote fair competition and protect consumers’ interests.
Technological Adaptation
As telecommunication technology advanced, IXCs had to adapt. This includes adopting fiber optics, VoIP (Voice over Internet Protocol), and other modern signaling technologies to remain competitive and efficient.
Examples of Long Distance Carriers
- AT&T: Originally part of the Bell System, AT&T remains a dominant force in long-distance services.
- Sprint: An early competitor post-Bell breakup, known for innovative pricing models.
- MCI: Played a pivotal role in breaking AT&T’s monopoly by offering alternative long-distance services.
Applicability and Impact
Consumer Benefits
The introduction and competition among IXCs have significantly lowered the cost of long-distance calling, making such services more accessible.
Business Dynamics
Businesses benefit from bulk long-distance plans and advanced communication infrastructure provided by IXCs, aiding in efficient and cost-effective operations.
Comparisons and Related Terms
Local Exchange Carrier (LEC)
LECs manage local services, operating the infrastructure required for local calls, as opposed to the extended reach of IXCs.
Competitive Local Exchange Carrier (CLEC)
Compete with LECs to offer local and sometimes long-distance services.
FAQs
What Distinguishes an IXC from a LEC?
How Has Technology Influenced IXCs?
Are IXCs Still Relevant in the Age of Mobile and Internet Communications?
Summary
Long Distance Carriers, or IXCs, play a crucial role in the telecommunication landscape, especially notable post the Bell System breakup. Their introduction spurred competition, innovation, and significant consumer benefits. As technology evolves, so do IXCs, adapting to new challenges and continuing to offer pivotal services in the ever-changing telecommunication sector.
References
- Federal Communications Commission (FCC) - fcc.gov
- AT&T Archives and History Center - attarchives.com
- Sprint Corporate History - sprint.com
- MCI Historical Overview - mcicorp.com
