Some competitive local exchange carriers (CLECs) and other network service providers (NSPs) did spring up in large cities where there was a dense concentration of business customers. They offered high-capacity data services or "local bypass," which allowed businesses to connect directly to their long-distance carriers and avoid local tolls. Because the telephone companies owned all the lines to businesses and residences, they resisted sharing those lines with competitors. Eventually, thanks in part to legislation and regulatory action, the telephone companies came to accept the use of their facilities by competitive carriers. The CLECs typically pay the telephone companies a rental charge for space in the central office where they can put their own transmission and access equipment. What started out as an antagonistic relationship has matured into an advantageous economic relationship for CLECs and for the telephone companies who host them.
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