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About Us
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The Federal Communications Commission (FCC) formed NECA in 1983 to perform telephone industry tariff filings and revenue distributions following the breakup of AT&T. Below are brief descriptions of key events that have shaped our organization.
1982 | 1983 | 1986 | 1987 | 1988 | 1989 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007
1982 |
- The Federal Communications Commission (FCC) proposes a new "intra-industry entity."
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1983
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- The FCC outlines its Access Charge Plan and its proposed exchange carrier association (ECA), and creates an ECA Board of Directors.
- The first ECA Board of Directors meeting takes place in Whippany, NJ; the Board adopts the name of National Exchange Carrier Association, Inc. (NECA).
- AT&T files first ECA access tariffs on behalf of NECA, to become effective 5/24/84 when long distance companies begin paying local telephone companies (LECs) a per-minute "access charge" to use the local network to complete long distance calls.
- NECA incorporated in Delaware.
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1986 |
- Universal Service Fund (USF) payments begin, to be phased in over an eight-year period. USF is funded by carrier common line revenues.
- The FCC detariffs billing and collection.
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1987
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- Independent NECA Services, Inc. (INS) is incorporated as a NECA subsidiary to administer billing and collection programs.
- The FCC grants NECA's request to provide intrastate services under certain conditions.
- The FCC issues an Order allowing LECs to leave NECA Common Line pool in 1989.
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1988
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- NECA replaces Tariff FCC No. 1 with simplified Tariff FCC No. 5.
- FCC allows NECA to offer Tariff FCC No. 4 services to non-member companies on a fee basis.
- NECA files access tariff changes allowing it to bill, collect and disburse USF/LA monthly charges.
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1989
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- BOCs and other large LECs leave NECA Common Line pool, but continue to support it through payment of long term support; USF cost recovery shifts to a per line amount billed directly to long distance companies based on number of presubscribed lines.
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1993
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- FCC names NECA national fund administrator for Telecommunications Relay Services (TRS).
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1994
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- The FCC and the National Telecommunications Information Administration launch inquiries into high cost assistance for local telcos to evaluate universal service mechanisms and gather information on broader universal service issues.
- The FCC initiates regulatory fees to be paid by companies it regulates. NECA begins annual program of submitting fees on behalf of hundreds of its pool members.
- NECA administers its first state universal service fund, in Vermont. NECA administers state TRS and lifeline programs and Vermont's enhanced 911 emergency service.
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1995
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- NECA reappointed national fund administrator for Telecommunications Relay Services (TRS), term to expire 7/25/99.
- The FCC allows NECA to include non-member company data in Tariff FCC No. 4.
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1996
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- President Clinton signs the Telecommunications Act of 1996, a sweeping revision of the Communications Act of 1934.
- The FCC proposes to revise/add rules to define universal service and support mechanisms.
- The FCC deregulates payphones, removes related costs from interstate rate base and mandates a per-call compensation plan to compensate payphone owners.
- The Federal-State Joint Board on universal service recommends NECA as interim USF administrator.
- Kansas chooses NECA to administer its state universal service program, estimated at $80 million annually.
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1997
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- In response to NECA's request, the FCC proposes to change NECA's governance and structure, rendering it more neutral.
- Arizona, Wyoming, Arkansas and Oklahoma choose NECA to administer their state universal service programs. Estimated combined annual fund value is $34 million. Vermont renews its contract with NECA, to administer estimated $6.3 million fund.
- The FCC allows NECA to engage in activities beyond those already approved by the FCC, including: international assistance, telecommunications-related training, additional services and activities incidental to core operations, and agent and administrative services for marketing LEC services.
- Acting on the Federal-State Joint Board's recommended decision, the FCC makes sweeping changes to federal universal service policy. Among the changes:
- Many implicit support mechanisms such as Long Term Support and Dial Equipment Minutes weighting become part of the new high cost loop support fund (formerly USF). NECA is appointed Interim Administrator of the new fund.
- The universal service contribution base is enlarged to include all telecommunications carriers and others such as those providing paging and cellular services. Assessment is based on revenues rather than presubscribed lines.
- Funding is extended to eligible schools, libraries and rural health care providers.
- Three corporations will administer the programs. NECA will administer the high cost loop fund, while two unaffiliated corporations will administer the schools and libraries and rural health care provider funds.
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- NECA is authorized to establish a subsidiary to administer universal service. The subsidiary, Universal Service Administrative Company (USAC) is incorporated in Delaware. NECA aids the FCC in establishing the two unaffiliated corporations, called the Schools and Libraries Corporation (SLC) and the Rural Health Care Corporation (RHCC). SLC contracts with NECA to perform many of the administrative duties associated with the schools and libraries program.
- NECA appointed North American Numbering Plan (NANP) B&C agent.
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1998
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- North American Billing and Collection, Inc. (NBANC), is incorporated in Delaware. This third NECA subsidiary will function as NANP B&C agent.
- NECA President Bruce Baldwin retires; succeeded by Robert T. Anderson.
- Texas chooses NECA to administer its multi-million dollar state universal service fund.
- FCC report to Congress recommends that SLC and RHCC become part of USAC and USAC be named permanent universal service programs administrator. At that time, USAC will be divested from NECA, but USAC can contract with NECA to perform particular administrative functions.
- USAC names its first CEO, Cheryl Parrino, former Wisconsin PSC chairman.
- The FCC amends schools and libraries and rural health care programs, revising funding rate and rules of priority for funds distribution.
- USAC submits plan of reorganization to the FCC. The reorganization would create a single not-for-profit entity with three divisions: High Cost & Low Income, Schools and Libraries and Rural Health Care.
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1999
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- A reorganized USAC begins business on 1/1/99. The reorganized company contains three divisions: High Cost & Low Income, Schools and Libraries and Rural Health Care.
- Nebraska selects NECA to set up and administer its state universal service fund for an interim period of at least six months.
- The FCC reappoints NECA as Telecommunications Relay Services (TRS) administrator for an additional four years.
- NECA appointed administrator of the Nevada universal service fund.
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2000
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- Arizona renews NECA contract to administer state universal service fund.
- FCC appoints NECA to collect and file consolidated data in support of four funds: TRS, NANPA, LNP and universal service support.
- Pennsylvania names NECA interim administrator of newly established state universal service fund.
- NECA wins 3-year contract to serve as Fiscal Agent of the Vermont Energy Efficiency Utility Fund.
- NECA Services, Inc., an unaffiliated corporation, is formed to pursue new business opportunities, drawing on the skills and experience of NECA professional staff.
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2001
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- INS sells billing and collection business to NECA Services, Inc. and transfers staff to NECA. NECA Services, Inc. contracts with NECA to perform billing and collection services. INS discontinues doing business.
- NECA sells state fund administration business to NECA Services, Inc.
- Federal/State Joint Board convenes Rural Task Force (RTF) comprised of experts representing a wide range of companies, consumer advocates and government officials to examine the cost structures and circumstances of rural carriers. RTF proposes Multi-Association Group plan to FCC.
- FCC releases Multi-Association Group (MAG) Order, largely adopting the RTF proposal. The Order calls for a five-year interim universal service plan to take effect on July 1, 2001. While the interim plan continues to use embedded or historical costs as the basis of universal service support, rural carriers must make a decision regarding disaggregation and targeting of support.
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2002 |
- Settlement negotiated with bankrupt Global Crossing, to pay members 30 cents for every dollar of undisputed, pre-petition claims.
- Published end user cost recovery study, showing that changes in interstate cost recovery have a disproportionate effect on rural telcos and their customers.
- NECA and NARUC co-sponsored the first National Summit on Broadband Deployment.
- Introduced Asynchronous Transfer Mode Cell Relay Access Service (ATM-CRS) as an interstate high-speed transport service, which allows customers to establish voice, video and high-speed data communications over the same infrastructure.
- Implemented major tariff changes to comply with the FCC’s Multi-Association Group (MAG) Order.
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2003 |
- Introduced a re-designed web site, http://www.neca.org/, including a Forms Online feature that makes it easier for members to track deadlines for FCC, USAC and NECA data requests and provides forms and certifications in one place.
- Negotiated with Deutsche Bank for the sale of more than $130 million in interstate and intrastate debt on behalf of some 1,100 companies, due to the WorldCom bankruptcy.
- Carrier Common Line (CCL) rates and regulations are removed from NECA’s annual access tariff, completing the phase-out, according to the Multi-Association Group (MAG) Order.
- NECA celebrates 20th anniversary as the administrator of the FCC’s federal access charge plan.
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2004 |
- Initiated and received a favorable T-1 End User Common Line ruling from the FCC, lowering the number of subscriber line charges pool members must bill for certain specialized equipment. This allows members to compete on a level playing field with competitors using different technologies.
- NECA Chairman Bill Hegmann succeeded Robert Anderson as President.
- Effective 7/4/2004, 200 employees working solely on non-core functions were transferred to NECA Services, Inc. (NSI), leaving NECA with about 320 employees.
- Established a Services Agreement with NSI, under which NECA employees will continue to provide support services to NSI. The companies amended the agreement on 6/7/2004, extending the term to 6/30/2010.
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2005 |
- FCC Office of Inspector General announces plans to conduct up to 750 audits of companies that receive money from the Universal Service Fund, including 250 high-cost program audits.
- Annual interstate access tariff goes into effect as scheduled on July 1, despite strong opposition from AT&T and General Communications Inc. (GCI).
- FCC authorizes an additional $211 million to support Gulf Coast area telecom carriers and others affected by Hurricanes Katrina and Rita.
- FCC issues order establishing a new regulatory framework for wireline Broadband Internet access services, including “rural carve out” sought by NECA and national associations.
- Ended our Services Agreement with NECA Services, Inc. effective 12/30/2005.
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2006 |
- Annual interstate access tariff went into effect as filed, despite opposition from Verizon and AT&T.
- Raised presence in Washington, DC through creation of an executive level government relations position. Provided Congressional and FCC briefings on issues affecting NECA members.
- Missoula Plan for Intercarrier Compensation Reform – backed by more than 350 carriers representing RBOCs, non-rural carriers, and medium and small rural carriers – proposes to unify intercarrier charges for most carriers over 4 years.
- Published study on the future of rural broadband, examining the market potential, regulatory constraints and costs associated with delivery of an integrated multimedia package of voice, data and video services to rural end users.
- Published new report showing the progress being made by members of our Traffic Sensitive Pool in deploying broadband service. The annual study, Trends, replaces the prior bi-annual Access Market Survey.
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2007 |
- Average schedule formula modifications with the recommended transition plan were approved as filed, over strong objections.
- Developed and delivered new training class, Deploying Next Generation Technology, for members incorporating regulatory, technology and marketing.
- Presented background information on funding programs to rural telephone networks as well as our universal service responsibilities to the Federal-State Joint Board on Universal Service.
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