 first, that the 14-point checklist would have TELRIC rates applied. Initial Strategies for Serving "Classical" Voice Business Some of the first CLECs to spring up after the Act adopted a business model that seemed to fit squarely into the Act's mold. They provided local telephone service in direct competition with the ILECs using their own switches and oth- ers' transmission facilities. These transmission facilities could come from the ILEC as UNEs, or from a CAP. Sometimes it was called "Smart Build," because it attempted to optimize the use of capital while building a network. This became known as UNE-Loop operation when it used ILEC loops. "Smart Build" and UNE-Loop CLECs In order to access retail and small-business customers, most CLECs that had their own switches still depended on ILEC local loops. This imposed some cor- ollary expenditures. To access these loops, the CLECs needed to establish collo- cation in the ILEC central offices and obtain dedicated transport facilities from their own switches to these collocation nodes. They then put multiplexing hard- ware, similar to digital loop carrier hardware, into these collocations. Note that CLECs could not install their own switches in ILEC central offices-this was not permitted! They were only allowed to install multiplexors and other equip- ment needed to make use of unbundled network elements. Even if a CLEC had plenty of extra space in its 100-square-foot collocation cage, it could not put in switching there. CLECs sometimes built their own switch facilities and some- times put their switches in neutral carrier hotels. In 1996 and 1997, CLECs usually needed to use collocation cages to access loops. Caged "physical" collocation was costly, though. Such a steep entry price limited collocation to larger central offices where there was some hope of garnering enough business to pay it off. Collocation also carried rental charges, which for a cage was often on the order of $1,000 per month, plus substantial charges for DC power, cross-connect cabling, and oth