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Total element long run incremental cost (TELRIC) is a common measure applied by telecommunications regulators in some jurisdictions to set access prices with the help of cost-based measures. In the United States, the Federal Communications Commission (FCC) provides a price ceiling to ensure that incumbent local exchange carriers (ILECs) charge competitive local exchange carriers a fair price for interconnection and co-location.
The FCC used the term TELRIC for the first time when it interpreted TELRIC's role under the 1996 Telecommunications Act. This particular act was predicated on a higher level of unbundling by ILECs. Therefore, the act was centered on the idea that ILECs would have to lease components of the local telephone network to prospective competitors. Such competitors would then expect to blend these components together, possibly using their own elements to offer appropriate services to end users.