PCO - MDU - POE

After months of preparation, the Program of Excellence (POE) was tentatively adopted by the ICTA BOD and presented to the Charleston Multihousing Telecom & Technology Conference on March 27. The POE represents our collective industry's intention to enhance competition with franchised cable in the MDU marketplace through better products and services provided for residents. The POE was developed by an ICTA Task Force led by Scott Wiggins of United Dominion, Bob Grosz of Castle Cable, Robert Oulton of NeXwave and Bryan Rader of Media Works

The POE project began 3 years ago with Anne Walker and John Norcutt proposing that the industry adopt performance standards. However, it was recognized that until ICTA incorporated more multifamily housing companies and REITs in its membership that the development of a POE would be one-sided. MDU input was needed and accomplished. Now, the Task Force has developed a POE with three components: Standards of Excellence, Provider Data/Dissemination, and Training and Certification. (continued)

New Era - New Breed - New Opportunities

The ICTA-SBCA MDU Conference is designed to bring together multifamily housing representatives with Video, DBS and ISP providers. No matter where you are on the learning curve, benefit from 4 days of comprehensive educational programs. Network with your colleagues, discuss solutions with experts and hear what your competitors are pursuing. In conjunction with the SBCA 2000 National Satellite Convention and Exposition, the Second Annual MDU/Multihousing Conference & Exhibits Pavilion will be held in Las Vegas, NV, July 18 - 21, 2000.

MDU Conference registration and session descriptions may be found at www.sbca.com, click on SBCA 2000 Convention. For additional information contact Brenda O'Connor at boconnor@imcc-online.org or 202/364-0882.

Charleston Gathering Success

by Bill Burhop, Executive Director

Recently, numerous ICTA Board members and prospective members attended the Multihousing Telecom & Technology Conference 2000 in Charleston SC. We had an ICTA BOD meeting, a BOD dinner, and SBCA MDU Segment meeting and a 2 hour presentation to the 150 conference attendees. The presentation by Sue Ansel, Laurie Baker and Chris Volgenau, included the roll-out of the ICTA Program of Excellence and a review of our industry's priorities for the future.

There was an interesting cross-section of MDUs, PCOs, ISPs, and DBS representatives in attendance. Here are some observations:
1) There is a distinctly new enthusiasm and positive spirit evidenced by MDUs and PCOs to bring better products and services to residents.
2) PCOs are enjoying a rejuvenated level of respect which carries a coincident increase in responsibility to produce.
3) The leadership of a dozen MDUs on the ICTA BOD is clearly a constructive addition for ICTA's decision making process and influence in the industry.
4) It is clear that PCOs need to include ISP in the quiver of product arrows.
5) DBS is recognized as having great potential for PCOs because of MDU residents' desire for the service, but the business models for delivery of this product require evolution.
6) WSNet has taken a major step toward providing a DBS product that PCOs need to offer, but can only offer in ways that make technological and business sense.
7) New ICTA members are pursuing great opportunities in MDU markets other than apartments: including campus housing, senior housing and planned unit developments.
8) It was truly unique in Charleston, as opposed to the past, that instead of explaining what ICTA is and urging potential members to consider joining, now it is BOD members bringing their suppliers and even competitors to ICTA because they want to join our association.
9) The Program of Excellence was greeted with immediate and positive reaction. After months of work we are now ready to use the POE as a means of separating ourselves from the competition and capitalizing on our strengths.
10) A new breed of PCOs is emerging in several areas across the country with numerous companies emerging as the next generation of leadership.
11) 4Com's Jeff Maxwell, respected as a potential industry leader, has agreed to channel his energies in constructive ways.
12) One former ICTA member - that quit because our direction was "off-base" - has indicated that ICTA is now on track and is a dynamic organization which they seek to rejoin.

These observations, I believe, represent the "new era, new breed, new opportunities" position of our industry. With the FCC rulemakings soon to be released, with the July MDU Conference details being planned, with new opportunities for electronic and print industry publications and with new product providers, PCOs and MDUs not only joining ICTA but charging ahead to improve our marketplace - the PCO and MDU industry is vibrant and alive. Your participation in ICTA is a significant component of that reality.

18 GHz

We have endeavored to keep you informed during recent weeks as negotiations continue between ICTA and a coalition of satellite launching companies. The subject is the FCC Rulemaking reallocating the radio spectrum known as 18 GHz. PCOs currently use that radio spectrum for the transmission of video signals between a building with a head-end and surrounding buildings, within a six or so mile radius, not requiring a head-end. This technique saves residents considerable expense. The FCC rulemaking would virtually eviscerate PCO use of this technique.

Bob Pallé of Blonder Tongue has been most active meeting and communicating with numerous satellite companies exploring technical solutions to this problem. Although such a solution has thus far not been found, negotiations have narrowed the differences. We hope that within one week the negotiating efforts will have succeeded or failed. Regardless, the FCC will issue a final Rule and Order in the near future. Our goals are to protect the existing 2500 18 GHz links used by PCOs and to assure PCO growth in the use of microwave transmissions in the future.

Please communicate with headquarters regarding any questions.

The Big Rule

We have also endeavored to keep you abreast of FCC Cable Services Bureau Staff efforts to finalize CS 95-184, which encompasses exclusive contracts, perpetual contracts and state mandatory access statutes. The status has not changed since our last communication with the industry. Namely, it is expected that within a month or two the Cable Services Bureau will submit a Draft Report & Order to the 5 Commissioners for final consideration. The contents, to our knowledge, remains as previously described. Given the importance of these issues to the MDU/PCO industry, this is our highest priority and will continue to be until the final rules are issued.

Industry Advocate

From time to time exceptional efforts need to be recognized. Rich Muller of Muller Communications, Inc. in Marina Del Rey, CA, is widely known in our industry. Last year, Rich, in conjunction with Larry Kessler, was essential in the organization of the first MDU Conference held in Las Vegas. For years Rich has been an advocate of the Private Cable Operator industry as a primary conduit for the growth of DBS in the MDU market place. In addition, Rich has worked with and advised numerous PCOs on ways to grow and expand both products and quality service. Recently, Rich was of significant help to the ICTA by serving as the intermediary between the Association and several parties seeking to join ICTA or to offer constructive criticisms. In each of these instances, Mr. Muller performed not only a useful function for the individual companies but helped bring about a better understanding of ICTA and our collective opportunities.

Rich, your friendship, hard work, and positive attitude are a constructive influence for all of us in the DBS, PCO and MDU sector.

ICTA Relocates

Effective May 1, 2000, ICTA will move to 225 Reinekers Lane, Suite 600, Alexandria, VA 22314. Our new telephone number will be (703) 739-8364; new fax number (703) 549-2863; E-mail addresses will remain the same - Bill Burhop - bburhop@imcc-online.org; Brenda O'Connor - boconnor@imcc-online.org. Please update your files accordingly.

State Mandatory Access

Several states are still considering new legislation regarding mandatory access statutes. They include Kansas, New York, Oklahoma, Florida and California. A recent report indicted the Illinois legislature is also considering such legislation, but the rumor has not been tracked down.

Any information ICTA members may hear about franchised cable pushing such legislation in any state will be appreciated.

Industry News

Bob Vogelsang has repurchased the Private and Wireless Magazine and renamed it Private & Wireless Broadband. ICTA has been in communication with Bob and the magazine editor, Joel Schofield. It is hoped that the resources of InteliCable PrivateCable.Com, WSNet, 4Com, the Vogelsang publication and ICTA Notes can be coordinated for an electronic newsletter published on a bi-weekly basis and a monthly print magazine. Each would be hyperlinked to the other and in conjunction they would serve as the industry publication and the repository for information about PCOs and MDUs.

WSNet - Announced its new digital satellite television service on March 22, 2000. WSNet's new service will deliver over 180 digital video, music, movie and pay-per-view channels. The service which uses a single mini-dish antennae, will be sold through established video service operators, including PCOs serving multiple dwelling units, small and rural cable operators, and wireless cable operators.

The Digital Programming Solution will be previewed at WSNet's Annual Operators Summit April 11-14, in Austin. For additional information visit www.wsnt.com

Retransmission Consent

As an outgrowth of SHIVA (Satellite Home Viewer Improvement Act of 1999), Christopher Day and Todd Ryden of StarCom have brought to our attention the possibility of franchised cable companies seeking to frustrate the ability of PCOs to contract for the delivery of certain programming. The exact threat to the PCOs' programming ability is unclear. If you would like additional information on this matter contact headquarters.

PCO - MDU - POE

The POE Standards are a "road map" to facilitate PCO - MDU business negotiations. The Standards are proposed as topics to be addressed in contract negotiation. The Standards are not intended to be monolithic, absolute or applicable in every situation. The topics addressed are strongly encouraged for inclusion in every contract but the language in the Standards is suggestive and not mandatory.

The ICTA BOD tentatively adopted the standards and presented them to the MDUs in attendance at the Charleston conference as a draft hoping to stimulate views and input during the next 30 days. Thereafter, in late April, the Task Force will consider the input from the industry and make additional changes in the POE content. Then the proposed final Standards will be published and distributed to the industry.

It is also anticipated that the POE will be a major subject of focus at the July 18 - 21 MDU Conference in Las Vegas.

You are encouraged to read the Standards (e-mailed to you on 2/18/00; or online here) in detail and submit your views to anyone of the Task Force members or to ICTA headquarters.