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Enhanced Service Provider: The Telecom Definition and Its Limits

Texas defines an enhanced service provider as a company offering computer-based services over transmission facilities to provide value-added telephone services. The term depends on the governing rule or contract.
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In Texas telecommunications rules, an enhanced service provider is a company that offers computer-based services over transmission facilities to provide customers with value-added telephone services. That is a jurisdiction-specific regulatory definition, not a universal label for every business that adds features or value to a product.

What does “enhanced service provider” mean?

Texas Administrative Code § 26.5(85) defines an enhanced service provider as “A company that offers computer-based services over transmission facilities to provide the customer with value-added telephone services.” Texas Administrative Code § 26.5

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The definition has three parts: a company provides a computer-based service; the service is carried over transmission facilities; and it gives the customer value-added telephone services. The phrase belongs to a telecommunications regulatory context, rather than describing any company that adds value to something it sells.

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How the Texas definition is used

The surrounding Texas rule uses the term in connection with a written request to an incumbent local exchange company for unbundled network elements or services. That context helps explain why the definition appears in telecommunications access and interconnection materials. The rule’s adjacent definition of “basic local telecommunications service” is in § 26.5(21). Texas Administrative Code § 26.5

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How the federal description differs

Federal 47 CFR § 64.702 describes enhanced service—the underlying service category—rather than defining an enhanced service provider in the same terms as the Texas rule. Its text describes computer processing performed over common-carrier transmission facilities, including processing that:

  • Acts on the format, content, code, protocol, or similar aspects of transmitted information.
  • Provides additional, different, or restructured information.
  • Enables a subscriber to interact with stored information.

The current eCFR page for § 64.702 marks the section reserved. The description above summarizes language in the rule; it should not be treated as proof that the text creates a current obligation. Check the applicable law and its status before relying on it for a compliance decision.

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Which definition applies?

Start with the document or rule where the phrase appears. A regulation, contract, or other governing instrument may use its own formulation, and the meaning can depend on jurisdiction and effective date. For example, a Missouri Public Service Commission filing illustrates that agreements may state their own wording; it does not establish a definition that applies everywhere.

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  • Identify the jurisdiction and the specific rule or agreement.
  • Check whether that source defines the provider, the service, or both.
  • Confirm the version and effective date that govern the question.
  • Consider the actual service functions and how they use transmission facilities.

Do not assume that a particular modern software, internet, or telecom vendor qualifies based on its industry label alone. The term must be assessed against the applicable source and the service at issue.

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