What is the local loop or last mile

What is the local loop or last mile
The local loop, or last mile, is the stretch of cable that runs from a customer’s premise to a carrier’s point of presence.  It’s typically provided by the incumbent phone company that services a given area.

The local phone company, Verizon, AT&T and Qwest (CenturyLink) for example, have agreements with most of their competitors and supply the loop at a pre determined, usually discounted rate.  The only companies that don’t utilize the ILEC’s (Incumbent Local Exchange Carrier or phone company) loops are the local cable company and the power company.  In some circumstances, if the opportunity is large enough or if the customer is willing to pay for it, a competitive provider can bring in dark fiber and connect to the customer directly, to bypass the phone company.

It would be cost prohibitive for companies to bring their network to every customer they service.  Plus, if every carrier brought their own cable to each business they service, no one could see the light of day through the maze of over head cable and the area around office buildings would look more like farm fields than smooth pavement.

The Importance of Having a Telecom Plan B

ILECs gladly sell local access to their competitors because it’s profitable and doesn’t require the customer support that end-to-end solutions demand.  Despite that, their sales reps emphasize to prospects that their competitors will utilize their lines to service them and hint that it could be an issue.  They say things like, “one throat to choke”, meanwhile if you’ve ever been tossed around from one phone company employee to another and from one department to the next, you probably wished you could choke about ten throats.

Even on this website, we mention in a provider’s description, under restrictions, when they need to utilize the incumbent’s loop to access a customer.  But the practice of reselling local access is what’s made the telecommunications industry so competitive.  If every carrier needed to bring their network all the way to a customer’s premise, only the largest companies would see competitive pricing from telecom suppliers.

Who bypasses the phone company’s network entirely?  Cable companies and wireless service providers.  Cable companies bypass the phone company because they can’t supply their cable TV through the phone company’s wire.  Wireless companies created a niche for their services solely by bypassing the phone company’s system.  They service companies looking for high bandwidth with limited options.

The main take away from this article is that just because a competitive provider needs to utilize the incumbent carrier’s cable to provide service, it’s not necessarily a bad thing.  Local loops have helped increase competition in the telecom industry and bring down the cost of business phone and internet services.  Thousands and thousands of businesses utilize voice and data services delivered in this manor without issue, every single day.

So when the sales rep from your local phone company points out that their competitor, who is offering to save you 20 percent or more on your voice and data services, will be utilizing their network to reach your business say, “yeah, yeah” and move forward without a second thought.

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Local leased circuits (LLCs) - what are these? Are they the same as local loops (LL)? These are perplexing technical terms that are core to telecoms issues - recently discussed by local and overseas regulators and operators.

27 July 2004, Singapore

Local leased circuits (LLCs) - what are these? Are they the same as local loops (LL)? These are perplexing technical terms that are core to telecoms issues - recently discussed by local and overseas regulators and operators.

To the uninitiated, 'LLCs' and 'LL' will simply be meaningless acronyms among others in Singapore. What exactly do they mean?

Local loops (LL) in the local context, refers to the twisted copper pairs that run from telecom exchange buildings to end-users' premises. Local loops are usually used for voice telephony services as well as Internet access services, for example, via Asymmetrical Digital Subscriber Line* (ADSL). The bandwidth capacity (speed) that may be carried over local loops are generally restricted to 2Mbps and below. This is because signal quality will decrease as the length of the local loops increase.

* Asymmetrical Digital Subscriber Line (ADSL) is a physical-layer protocol. The asymmetrical aspect of ADSL technology makes it ideal for Internet browsing, video on demand, and remote Local-Area Network (LAN) access. Users of these applications typically download more information than they send. ADSL can support up to 8 Mbps downstream bandwidth (speed) and up to 1 Mbps upstream bandwidth.

Local loops are also commonly termed 'last mile', because they are the 'final' links in the telecom network that provides connections or access to end-users. However, there are also other telecom services that are considered to provide 'last mile' access too, for example, local leased circuits (LLCs).

What, then, are local leased circuits, and how are they different?

What is the local loop or last mile
Local leased circuits (LLCs) are mostly fibre-optic cables that are able to provide connections of higher bandwidth capacity (speed) over longer distances, in comparison to local loops. Local leased circuits, as the term implies, are circuits that establish connections between individual locations within Singapore.

LLC connections can be generally divided into different segments. Connections between a business (end user) or multiple businesses, and a telephone exchange are commonly termed LLC 'tail circuits'. These tail circuits are the segments of the LLC network that are also considered 'last-mile'.

LLC connections between a telephone exchange and the operators' network site, are commonly termed LLC 'trunk circuits'. These can also be connections between two telephone exchanges, and are of equal or higher bandwidths than LLC tail circuits. LLC trunk circuits are also commonly known as 'head-end' circuits.

What is the local loop or last mile

LLCs are reliable and versatile, and provide dedicated capacity for the exclusive use of the buyer, and are available at bandwidths (speeds) from below 64 Kbps to more than 155 Mbps. They are fundamental building blocks for many corporate telecom services, such as high-speed Internet access and data services. LLCs are commonly leased (from LLC service providers) by operators to provide telecom services, and by businesses, such as banks and multinational companies, for voice or data communication with local and international offices.

With these characteristics, LLCs have made it possible for you to withdraw money from your savings account at neighbourhood Automated Teller Machines (ATMs), because they form the telecom link between banks and ATMs. They also provide connections between your office's local area network (LAN) and the Internet.

  • INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE, 27 July 2004 - Media Release: IDA Seeks Views on SingTel's Proposed Details for Wholesale Local Leased Circuits Services.
  • INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE, 27 July 2004 - Public Consultation: Proposed Amendments to Singapore Telecommunications Limited's Reference Interconnection Offer ('RIO') to Offer Local Leased Circuits ('LLC') as a Wholesale Service.  
  • MINISTRY OF INFORMATION, COMMUNICATIONS & THE ARTS, 2 July 2004 - Media Release: MITA Determines Appeal On Mandatory Wholesale Local Leased Circuits Service.
  • INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE, 16 December 2003 - Media Release: IDA Enhances Competition in Singapore's Local Leased Circuits (LLC) Markets .
  • INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE, 16 December 2003 - Explanatory Memorandum: IDA's Decision - Designation of SingTel's Local Leased Circuits as Mandated Wholesale service (160.04KB).

Featured

What is local loop installation?

A Local Loop is a physical connection from the end user site to a providers point of presence (POP). The Local Loop is delivered in a number of ways depending on the type of provider. Local Loops can be copper, fiber, coax, or wireless, and installed to the demarcation point (Demarc).

Where in a telephone system is the local loop?

In a telephone system, the local loop is a two-wire connection between the subscriber's house and the end office of the telephone company. It is commonly referred to as the “last mile” of the telephone network. The loop may run from 1km to as far as 10 km.

What are the types of local loop?

Three different levels in the local loop are distinguished: 1) the physical link; 2) the data transmission; and 3) services provision. In today's communication networks various technologies are used in the physical local loop. For fixed telephone networks this connection is usually a twisted pair of copper wires.

What is meant by wireless local loop?

A Mobile Wireless Local Loop (WLL) is an access solution deployed using standardized cellular or low-mobility infrastructure and mobile devices. This primarily includes technologies such as cdmaOne (IS-95A and B), cdma2000 1x RTT, Personal HandyPhone System (PHS) and personal access communication services (PACS).