National Exchange Carrier Association

What National Exchange Carrier Association does

National Exchange Carrier Association Inc. (NECA) is a U.S. membership association of local telecommunications companies, headquartered in Whippany/Morristown, New Jersey, founded in 1984 and operating with 101-250 employees. NECA administers four FCC tariffs (Tariff No. 3 for special construction, Tariff No. 4 for wire center and interconnection data, Tariff No. 5 for interstate access services, and Tariff No. 6 for business data services) on behalf of approximately 1,300 member companies. Core technology centers on the Access Revenue Pooling system, which distributes interstate access revenues across participating ILECs, and Average Schedule Formula calculations that forecast cost-company settlements for participating members. Membership is organized into three FCC-defined divisions: Bell Operating Companies (including AT&T and Verizon), large telcos with annual revenues of $40 million or more, and remaining smaller telcos, the latter representing the majority of members. Governance is provided by a 15-member Board of Directors (10 division representatives plus 5 outside directors).

NECA's business model is a membership-funded regulatory intermediary: it files tariffs with the FCC, runs monthly and annual revenue pooling settlements, provides Universal Service Fund (USF) support and data submission services, and offers training, publications, and government affairs advocacy. Distribution operates through five regional member service offices plus a Washington, D.C. regulatory affairs office that interfaces with the FCC, RUS, NTIA, and NARUC. Member engagement is reinforced through the annual EXPO conference, recurring publications (Washington Watch, REGScan, Access, Guide to Telecom Rules), and free webcast training.

NECA's competitive position rests on its FCC-designated role in tariff administration and pooling for the rate-of-return ILEC segment, and on the scale economics of pooling across hundreds of small carriers that would be unable to file or settle independently. Its addressable market is exposed to U.S. telecom regulatory reform (USF/ICC transition, IP migration, broadband substitution for voice access), but member services and regulatory advocacy have been expanded to address these shifts, including new Broadband Data Collection and USF reform resource hubs.

Name

National Exchange Carrier Association

Legal name

National Exchange Carrier Association Inc.

Website

https://neca.org

Company type

Private

Founded year

1984

Operating status

Operating

Headcount range

101–250 employees

Short description

NECA is a U.S. membership association of approximately 1,300 local telecommunications companies that files FCC interstate access tariffs, administers intercarrier revenue pooling and settlements, and provides regulatory compliance, USF support, and training services to rural ILECs.

Ownership category

akta.pro rank

Headquarters

HQ city

Whippany

HQ country

United States

HQ region

North America

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure

Distribution channels3 records

Marketing channels6 records

Core offering

NECA is a membership association that files and administers interstate access tariffs (Tariffs No. 3, 4, 5, and 6) with the FCC on behalf of approximately 1,300 U.S. local telephone company members. The association pools interstate access revenues collected by long-distance carriers and redistributes them among participating local carriers, reducing individual compliance burden and stabilizing cash flow for rural ILECs. It also delivers USF compliance support, regulatory training, and tariff-related publications to its members.

Product overview

National Exchange Carrier Association (NECA) operates as a membership organization offering a unified suite of tariff administration and regulatory support services for U.S. local telecommunications companies. The core product portfolio centers on four FCC tariffs: Tariff No. 3 (special construction), Tariff No. 4 (wire center/ordering/billing database), Tariff No. 5 (interstate access services), and Tariff No. 6 (business data services). These tariffs are complemented by Access Revenue Pooling services and Universal Service Fund support programs. Additionally, NECA provides training/education services, publications (Access, Guide to Telecom Rules, REGScan, Washington Watch), and company code administration. The organization functions as a regulatory intermediary, filing tariffs with the FCC and managing revenue distribution among member rural telecommunications companies.

Differentiator

Problem solved

Functional benefit

Products and services

• Tariff No. 3 — Special Construction Contains rates and regulations for the special construction of facilities used to provide interstate access services; applies in addition to all rates and charges set forth in NECA Tariff FCC No. 5. Used by member local telephone companies filing jointly with the FCC.
• Tariff No. 4 — Wire Center and Interconnection Database Describes the location and technical capabilities of wire centers providing interstate access telecommunications service; contains interconnection information supporting ordering and billing of jointly provided interstate access services and provides data for determining the distance of interstate access transmissions for billing purposes. Used by member telephone companies and interconnecting carriers.
• Tariff No. 5 — Interstate Access Services Contains rates and regulations applicable to interstate access services offered by local telephone companies participating in the tariff; covers access to the local telephone company's network for long distance calls, End User Common Line, Digital Subscriber Line access services, and Special Access services. Filed with the FCC on behalf of member carriers.
• Tariff No. 6 — Business Data Services Contains rates and regulations applicable to business data services access services offered by member local telephone companies. Used by carriers and business customers accessing these interstate services.
• Access Revenue Pooling Manages distribution of interstate access revenues paid by long-distance companies to local telephone companies; members can participate as either cost companies or average schedule companies whose settlements approximate cost-company amounts. Stabilizes cash flow and shares forecast risk across member ILECs.
• Universal Service Fund (USF) Support Provides support for high-cost loop support and local rate floor data, data submissions to USAC and the FCC, Legacy ROR HCL Fund calculations, and cost studies for study areas. Used by member rate-of-return carriers seeking USF support.
• AOCN Services Association of Communications Management Network services provided to members.
• Company Codes (OCNs) Company code administration services for Operating Company Numbers used in tariff ordering and billing.
• Training and Education Services Training on access-related topics including interstate pooling, tariff services, average schedules, regulatory issues, and changing technology; includes telecom curricula, webcasts, and the EXPO annual conference. Targeted at NECA member carriers and their staff.
• Publications (Access, Guide to Telecom Rules, REGScan, Washington Watch) Member-facing publications including Access (regulatory summaries), Guide to Telecom Rules (FCC rules companion), REGScan (weekly federal regulatory summary), and Washington Watch (daily FCC/government actions update).

Segments4 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Recent moves5 records

Expansion highlights4 records

Direct peers

• NTCA - The Rural Broadband Association: The leading U.S. trade association for small, rural community-based telecommunications companies. Directly comparable as a parallel membership association serving rural LECs, with overlapping membership and overlapping advocacy on USF, broadband funding, and FCC regulatory matters.
• WTA - Advocates for Rural Broadband: U.S. trade association focused on rural telecommunications companies, particularly smaller independent telcos. Comparable as another member-driven organization serving a largely overlapping rural carrier constituency, with similar advocacy focus on FCC, USF, and broadband policy.

Broad incumbents

• USTelecom - The Broadband Association: The largest U.S. broadband and telecommunications industry trade association, representing major carriers, suppliers, and technology companies. Comparable as an industry trade association with FCC-facing regulatory policy work, but operating at a much broader scope beyond rural ILECs and at meaningfully larger scale than NECA.
• CTIA: U.S. wireless industry trade association representing carriers, equipment manufacturers, and technology companies. Comparable as a major telecom industry association with significant FCC regulatory advocacy, but focused on wireless rather than wireline ILEC interests.
• Competitive Carriers Association: U.S. trade association representing competitive wireless carriers and other small/regional communications providers. Comparable as a trade association serving smaller carrier members with FCC regulatory focus, overlapping partially with NECA's rural carrier constituency on access, USF, and broadband policy.

Regional players

• Texas Telephone Association: State-level trade association representing Texas telecommunications companies. Comparable as a parallel membership association for rural and small telephone companies within a single state, focused on state regulatory and legislative matters rather than FCC national tariff and pooling functions.
• Colorado Telecom Association: Colorado state trade association for rural and small telephone companies. Directly comparable as a state-level peer to NECA serving rural telcos on a regional basis, focused on state regulatory matters and industry events rather than the FCC national tariff and pooling functions that define NECA.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks5 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/national-exchange-carrier-association-inc

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds

Investors

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M&A

Investments

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Frequently asked questions about National Exchange Carrier Association