Customer premises equipment (CPE) is communications equipment used on the premises of someone other than a carrier to originate, route, or terminate telecommunications. A modem or router is a familiar example, but the term is broader: depending on context, it can also include computers and connected devices such as smartphones and tablets.
What does CPE mean in telecom?
U.S. law defines customer premises equipment as “equipment employed on the premises of a person (other than a carrier) to originate, route, or terminate telecommunications.” The definition is in 47 U.S.C. § 153(16).
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Three parts determine whether equipment fits the definition: it is on a non-carrier’s premises, it is employed there, and it performs a communications function by originating, routing, or terminating telecommunications. The law does not require the carrier to supply or own the equipment.
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The category is not limited to a single box or to equipment permanently installed in a home. In a 2016 broadband privacy order, the FCC identified traditional examples including a customer’s computer, modem, router, videophone, and IP caption phone. It also said consumer devices capable of connecting to broadband, such as smartphones and tablets, could count as CPE in that context. The FCC rejected the view that a broadband provider must furnish a device for it to qualify.
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Other communications materials give examples such as telephones, switches, residential gateways, set-top boxes, fixed mobile convergence products, home networking adaptors, and internet access gateways. These illustrate how the term can be used in particular communications contexts; they are not a universal checklist. The FCC order is available at FCC 16-148.
Is a modem or router CPE?
Usually, a customer-side modem or router used to connect to and handle communications over a service is a straightforward example of CPE. A combined modem-router can perform both functions in one device. Whether a particular item qualifies in a specific dispute or regulatory setting depends on its location, who employs it, what it does, and which definition applies—not merely its product label or who sold it.
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How is CPE different from carrier network equipment?
The statute separately defines “telecommunications equipment” as equipment other than CPE that a carrier uses to provide telecommunications services. The distinction is about the role and side of the communications relationship: customer-side equipment used at a non-carrier’s premises is treated differently from equipment the carrier uses to provide the service.
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For Part 68 wireline rules, a related but narrower term is “terminal equipment.” The FCC’s regulation describes it as communications equipment located on customer premises at the end of a communications link, used to allow stations involved to accomplish telecommunications or information services. The regulation also defines the demarcation point, or point of interconnection, as the interface between a wireline provider’s facilities and terminal equipment, protective apparatus, or wiring at a subscriber’s premises. See 47 C.F.R. § 68.3.
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How to assess a device or setup
- Locate it. Is the equipment on the premises of a person other than a carrier, or is it part of the carrier’s facilities?
- Identify who employs it. Focus on its use in the arrangement, not simply who owns or supplied it.
- Check its communications role. Does it originate, route, or terminate telecommunications?
- Apply the relevant context. A broad statutory CPE definition and narrower Part 68 terms such as terminal equipment serve different purposes.
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