A more thorough explanation:

Unbundling rules are regulations created by the Federal Communications Commission (FCC) to enforce the local-competition requirements of the Telecommunications Act of 1996. These rules require local-exchange carriers to provide access to parts of their local-exchange networks on a separated basis, meaning that they must offer these parts individually rather than bundled together.

For example, if a local-exchange carrier owns the infrastructure for both phone and internet services, they must offer access to each service separately to other companies who wish to compete in the market. This allows for more competition and potentially lower prices for consumers.

Another example is if a local-exchange carrier owns the infrastructure for phone services, they must offer access to individual network elements such as phone lines, switches, and routers to other companies who wish to provide their own phone services using the existing infrastructure.

Overall, unbundling rules aim to promote competition and innovation in the telecommunications industry by allowing smaller companies to enter the market and offer their own services without having to build their own infrastructure from scratch.