Total element long run incremental cost

Total element long-run incremental cost (TELRIC) is a calculation method that the United States Federal Communications Commission (FCC) requires incumbent local exchange carriers (ILECs) to use to charge competitive local exchange carriers (CLECs) for interconnection and colocation, effectively imposing a price ceiling. A variant of long-run incremental cost (LRIC), it "measures the forward-looking incremental cost of adding or subtracting a network element" from a hypothetical system (that is efficient and uses current technologies). This allows the incumbent to recover a share of the fair value of their inputs in the long run.