Membership Dues & Categories

NTCA membership dues are based on six categories of membership: 1) Incumbent Local Exchange Carrier (ILEC); 2) Commonly Owned or Controlled Organization; 3) Alliance; 4) Non-ILEC Subsidiary; 5) Associate; and 6) Association. NTCA members must be in sympathy and accord with the purpose of NTCA as set forth in the association's bylaws and with the membership at large.

Membership dues are collected as follows. ILECs assessed dues before November 1, 2018, should consult the Legacy Dues formula. For additional help calculating dues, use the online dues calculator.

Incumbent Local Exchange Carrier Member

According to section 251(h) of the Communications Act of 1934, an incumbent local exchange carrier (ILEC) is the local exchange carrier that on the date of enactment of the Telecommunications Act of 1996 was (1) providing telephone exchange service in an area and (2) deemed to be a member of the National Exchange Carrier Association, or is a person or entity that on or after the date of the act’s enactment became a successor or assignee of the ILEC. ILEC members provide fixed voice and/or broadband internet access services to fewer than 50,000 customers. The ILEC may be structured as either a commercial company or cooperative, which must be designated on the membership application.

Communications companies that are eligible for ILEC membership are not eligible for other classes of membership. A customer is defined as a subscriber receiving voice and/or broadband service that receives a unique monthly bill. The member can retain membership if it subsequently exceeds the 50,000 customer limit.

Pursuant to the dues formula implemented on November 1, 2018, dues for ILEC members are assessed in two phases (Years 1–3 and Year 4 and thereafter) to accommodate a three-year transition period. In calculating potential dues assessments, it is important to note that the fixed broadband subscription totals being requested for the formula should be broken out by ILEC and non-ILEC service area regardless of what type of entity is providing the fixed broadband subscriptions (i.e. ISP affiliate, competitive affiliate, etc.).

Dues for ILEC members are calculated as follows:

YEARS 1–3 (BEGINNING NOVEMBER 2018):
The annual dues for each ILEC member shall be calculated as the greater of $4.90 per Fixed Broadband Subscription in that ILEC’s serving area or that ILEC member’s 2016 dues amount—but not to exceed a 10% increase over the 2016 dues amount (in Year 1), or a 15% increase over the previous year’s dues amount thereafter (in Years 2–3). There shall be an annual $500 minimum dues obligation and a $25,000 maximum obligation* with respect to ILEC member dues.

Added to that amount for each ILEC member shall be annual dues of $0.25 per Fixed Broadband Subscription provided by the ILEC or an affiliate within that company’s non-ILEC service area, subject to an annual $1,000 maximum.*

YEAR 4 (BEGINNING NOVEMBER 2021) AND THEREAFTER:
The annual dues for each ILEC member shall be $4.90 per fixed broadband subscription within the ILEC service area. Added to that amount for each ILEC member shall be annual dues of $0.25 per fixed broadband subscription provided by the ILEC or an affiliate within that company’s non-ILEC service area. For both of these calculations, the maximum and minimum dues amounts from the prior year shall apply, subject to an annual inflation factor.

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Commonly Owned or Controlled Member

A commonly owned or controlled member is an organization with common ownership and/or control of two or more telecommunications providers that qualify for ILEC membership. The controlling/holding company is not required to join. However, all subsidiary ILECs must join, with the largest ILEC paying the full dues and having the voting rights of the membership. A commonly owned or controlled ILEC member is assigned to the region where the largest ILEC is located. Any ILEC owned by multiple entities must join as a separate, full dues-paying ILEC member.

Dues for commonly owned members are calculated as follows:

YEARS 1–3 (BEGINNING NOVEMBER 2018):
Dues are calculated under the ILEC member category for the primary dues-paying company. All subsidiary ILECs within the group must join NTCA as well, but membership dues will be capped at $2,500* per subsidiary ILEC company. (For purposes of clarification, the dues for the primary dues-paying ILEC and each subsidiary ILEC will be calculated as stated above for all ILECs, including any amounts attributable to Fixed Broadband Subscriptions within non-ILEC service areas.)

In addition to the foregoing company-specific calculations, all companies under common ownership are subject to the following maximum dues amounts for the entire group:

  • ILECs with 2–10 subsidiary ILEC companies are subject to a maximum dues amount of $37,500.*
  • ILECs with 11–99 subsidiary ILEC companies are subject to a maximum dues amount of $56,250.*
  • ILECs with 100+ subsidiary ILEC companies are subject to a maximum dues amount of $62,500.*

YEAR 4 (BEGINNING NOVEMBER 2021) AND THEREAFTER:
Any organization with common ownership and/or control of two or more telecommunications providers that qualify for ILEC membership will be assessed full dues on the ILEC with the largest number of fixed broadband subscriptions in their ILEC service area as their primary dues-paying company. Dues are calculated under the ILEC member category for the primary dues-paying company. All subsidiary ILECs within the group must join NTCA as well, but membership dues for each subsidiary ILEC will be capped at the capped amount from the prior year, subject to an annual inflation factor. (For purposes of clarification, the dues for the primary dues-paying ILEC and each subsidiary ILEC will be calculated as stated above for all ILECs, including any amounts attributable to Fixed Broadband Subscriptions within non-ILEC service areas.)

In addition to the foregoing company-specific calculations, all companies under common ownership are subject to maximum dues amounts for the entire group. The maximum dues amount will be equal to the group’s maximum amount from the prior year, subject to an annual inflation factor.

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*For all calculations so marked, each company’s dues amount may be subject to an annual cost of living adjustment, at the board’s discretion. The adjustment will increase the company’s calculated dues amount by a percentage of the dues amount equal to the consumer price index (CPI-U published by the Bureau of Labor Statistics) for the 12 months ending the previous December, provided that such CPI-U is positive (and not negative) for the period.

Alliance Member

An alliance member is an organization formed by partnerships of NTCA ILEC members to offer communications infrastructure and services to customers and communities in a collaborative and efficient way. Alliance members have no voting rights.

Dues for alliance members are calculated as follows:

  • 1-10 Employees ................................................. $500
  • 11-50 Employees ............................................... $1,000
  • 51-100 Employees ............................................ $2,000
  • 100+ Employees ................................................ $3,000

If you believe your company qualifies for NTCA’s alliance membership and would like to join, please contact member services at membership@ntca.org or (703) 351-2118

 

Non-ILEC Subsidiary Member

A non-ILEC subsidiary member is an entity affiliated with an ILEC member that was created to provide telecommunications services including, but not limited to, cable television, wireless companies, interexchange carriers, video providers, Internet service providers and competitive local exchange carriers with fewer than 50,000 customers. Non-ILEC subsidiary members have no voting rights.

Any ILEC owned by multiple entities must join as a separate, full dues-paying ILEC member.

Dues for non-ILEC subsidiary members are calculated as follows:

  • 1-10 Employees ................................................. $500
  • 11-50 Employees ............................................... $1,000
  • 51-100 Employees ............................................ $2,000
  • 100+ Employees ................................................ $3,000

Holding companies participating in any NTCA benefit plan are assessed dues at the non-ILEC subsidiary Member rate.

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Associate Member

An associate member is a supplier of goods and services to the communications industry. Suppliers include entities such as insurance companies, manufacturers, other rural utilities, statewide providers of equal access, and consultants such as accounting, engineering and law firms. Associate members do not have voting rights.

Dues for associate members are calculated as follows:

  • 1-10 Employees ................................................. $550
  • 11-50 Employees ............................................... $1,250
  • 51-100 Employees ............................................ $2,500
  • 100+ Employees ................................................ $3,750

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Association Member

An association member is a local, state or regional association of communications companies. Association members do not have voting rights.

Dues

Dues for association members are $25 per year if participating in the association’s benefits program; otherwise, membership is free.

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International ILEC Member

An International ILEC member is an ILEC providing fixed voice and/or broadband Internet access services to fewer than 50,000 customers outside the United States and its territories. International ILEC members do not have voting rights.

Dues

Dues for international ILEC members are $500 per year.

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Individual Member

A person who was an employee of, or who was associated with, a member of any category of membership is eligible for membership as an individual member. Individual members do not have voting rights and are not eligible to enroll in NTCA benefits plans.

Dues

Dues are assessed as a one-time fee of $500.

To join as an individual, please contact member services at membership@ntca.org or (703) 351-2118.

 

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