Unbundled network element
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Unbundled Network Elements (UNE) are a requirement mandated by the United States Telecommunications Act of 1996. They are the parts of the telecommunications network that the incumbent local exchange carriers (ILECs) are required to offer on an unbundled basis. Together, these parts make up a local loop that connects to a digital subscriber line access multiplexer (DSLAM), a voice switch or both. The loop allows non-facilities-based telecommunications providers to deliver service without laying network infrastructure, such as copper wire, optical fiber, and coaxial cable.
UNE-Platform
A UNE-Platform (also known as a UNE-P) is a combination of UNEs that allow end-to-end service delivery without any facilities. Despite not involving any CLEC facilities, a UNE-P still requires facilities-based certification from the PUC to deliver services.
Availability of Unbundled Network Elements
Under Telecommunications Act of 1996 sections 251(c)(3), incumbent LECs are required to lease certain parts of their network specified by the FCC or by state PUCs. Pursuant to section 252(d)(1) these network elements must be provided on an unbundled basis at cost-based rates http://www.mrsc.org/Subjects/telecomm/LSIProgramMaterials.pdf .
In its UNE Remand Order, issued November 5, 1999, the FCC specified the unbundled network elements (“UNEs”) to which a competitor must be provided access: the “loops” that connect the switches to end users, including high-capacity loops; the switches (with some exceptions), the transport facilities between switches and other networks, and the software needed to operate the telephone network http://www.mrsc.org/Subjects/telecomm/LSIProgramMaterials.pdf .
In its Line Sharing Orders the FCC required that the high-frequency portion of the loop necessary to provide DSL services be unbundled http://www.mrsc.org/Subjects/telecomm/LSIProgramMaterials.pdf .
Both the UNE Remand Order and the Line Sharing Orders were remanded by the D.C. Circuit Court of Appeals in United States Telecom Ass’n v. FCC, decided on May 24, 2002; the Line Sharing Orders were vacated. The court concluded, among other things, that the FCC had not considered the availability of competitive facilities on a sufficiently granular basis http://www.mrsc.org/Subjects/telecomm/LSIProgramMaterials.pdf .
Prices of UNES
The Act provides that the states will set prices for UNEs based on “cost,” which may include a “reasonable profit.” The FCC has determined that “cost” means forward-looking economic cost and has required the states to use a methodology called “Total Element Long Run Incremental Cost” or “TELRIC.http://www.mrsc.org/Subjects/telecomm/LSIProgramMaterials.pdf .
See also
References
http://www.mrsc.org/Subjects/telecomm/LSIProgramMaterials.pdf .