Founded in 1984, the National Exchange Carrier Association (NECA) exists today as a not-for-profit organization. NECA is an association based on the membership of many local U.S. telephone companies. Originally, the association was designed and started by major telecommunications corporations. They needed an administrative body that could manage the payments that long distance phone companies needed to pay to the companies that ran local phone networks. NECA filled this role.
In 1996, the function and scope of the association expanded dramatically. The passage of the Telecommunications Act of 1996 changed the landscape of the telephone network industry. For NECA, the main impact was the creation of a subsidiary corporation, the Universal Service Administrative Company (USAC). USAC is responsible for ensuring that telephone service is accessible throughout the entire United States. They do so by offering subsidies to telephone companies serving high cost, low profit areas such as rural communities, schools, libraries and consumers with low incomes.
Over time, NECA expanded to more areas of administration and regulation. The association is well versed in analyzing economic trends and the impact of proposed governmental policies. NECA is also proficient in managing large databases for industries and developing systems for rates and tariffs.
Today, over 1,000 local telephone companies participate in NECA’s programs. The association provides several key services to these companies. They continue in their original mission of managing the access fees. They also help administer other fees and charges collected by the Federal Communications Commission (FCC). Many smaller companies rely on the association to ensure that they are complying with all relevant FCC rules and regulations.
As a nationwide association serving many diverse areas and communities, NECA plays a unique role in the gathering and analysis of statistical data. Their efforts in this arena focus on the costs incurred by telephone companies as they provide various services. By cataloging the costs and the amount of revenue generated by different offerings in different regions, the NECA helps phone companies plan their expansions. This data is also helpful in applying for and budgeting the subsidies provided by USAC.