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 having to lay network infrastructure such as copper wire, optical fiber, and coaxial cable.
In Telecommunications Act of 1996 sections 251(c)(3), incumbent local exchange carriers (LECs) are required to lease certain parts of their network specified by the FCC or by state PUCs.
Circuit Court of Appeals in United States Telecom Association v. FCC (290 F.3d 415), decided on May 24, 2002; the Line Sharing Orders were vacated.
[3] Based on the Telecommunications Act of 1996, the FCC could require LECs to provide UNEs at a cost-based price, which may include a "reasonable profit".