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       ICTA NOTES       
Volume 5, Issue 4 May 11, 2000
Independent Cable &
Telecommunications Association
5335 Wisconsin Avenue, NW, Suite 800, Washington, DC 20015
PH: (202) 364-0882vFX: (202) 364-3520 ¤ E-Mail: imcc@imcc-online.org

FCC Call to Arms

"Now is the time for all good . . ."

Over the past two and a half years our industry has strongly advocated positions at the FCC regarding exclusive contracts, perpetual contracts, state mandatory access statutes and improvements to the MDU Inside Wiring Rules. As this effort moved forward, we encountered several obstacles. Industry leaders, on numerous occasions, communicated with FCC Staff and Commissioners about these issues and that prudent regulatory action would enhance telecommunications competition with consequent benefits for MDU residents. On the other hand, wrong headed FCC action would turn back the benefits of the 1996 Telecommunications Act, allow franchised cable to expand its monopolistic grasp on the MDU market and reduce benefits for MDU residents because PCOs and other providers would be put at a severe competitive disadvantage.

These issues and our hard work are coming to a head and we face more obstacles. A Cable Services Bureau rulemaking draft is prepared addressing each of these issues. It is now in the process of senior staff review. It is expected that it will be submitted for Commissioner consideration soon.

Based on information derived from several sources, this is a critical juncture. There is the negative lobbying influence of the cable industry. Also the fact that a different FCC Bureau, the Wireless Bureau, is producing the Local Telephony Access rulemaking. It's quite clear some of the staff in each Bureau do not understand either the pertinent technology or business factors and that they are very different for video and telephony. Some staff pay homage to the mantra of convergence believing all the wires, all the ownership issues and all the marketing/business influences can be stuffed into one regulatory box. It's easy. It's silly. It is unfortunately a factor today.

All of these factors must be overcome. Great progress has been made - more work remains.

You are the Force

To accomplish our objectives you must be involved. Lobbyists inside the Beltway can only accomplish so much. To succeed in the last minutes of the game, the companies and individuals that are affected by these rules must step forward and communicate their message not to the bureaucratic staff but to the five FCC Commissioners themselves. They need to hear from you about your views, your reflections on the real world of telecommunications today and how this rulemaking will have a dramatic impact on the future of our industry and the residents we serve. If you don't get involved, you can be sure what is going to happen. Therefore, get your letters prepared using the arguments ICTA has provided in the past. Go to our web site and review the issues. The Commissioners do not need to hear legal arguments. They need to hear real world practical examples of how these issues will affect competition and residents. Also, get your customers, suppliers and bankers involved and ready to help. In addition to your letters we will ask you to make telephone calls and some of you to make visits to the FCC. Expect the go signal within two weeks.

Home Boys Hit Long Ball

Christopher Day and Todd Ryden, the leaders of StarCom Satellite Technologies, headquartered in Indianapolis, IN, discussed our industry with President Clinton on May 9th. Yeah, that's right! Having been invited to a small event in Washington with the President, our colleagues took this opportunity to describe our industry and its importance to the 30 million MDU residents nationwide. The President was sufficiently interested in their remarks that he offered to have the White House Staff follow-up on several matters Christopher and Todd mentioned. The material for this purpose is being prepared presently. For those of you who don't remember, these gentlemen, working with Lynn Mositner of the Indiana Apartment Association, turned back a major effort by the franchised cable companies to cajole the Indiana Legislature into adopting mandatory access legislation. It was then that they learned about ICTA and subsequently have become very active in our work and presently sit on our Board of Directors. More on this as it evolves.

POE Article

The Program of Excellence Task Force leaders including Scott Wiggins (UDRT) and Bryan Rader (MediaWorks) have prepared an article based on the input of numerous ICTA members. The article describes the evolution of ICTA into a building-centric organization led by MDU/REIT users and PCO/DBS/ISP providers working together for the advancement of our collective industry. The article also describes the fact that our industry is held back by a negative reputation generated by numerous PCOs - most of which are no longer in existence - which utilized poor business and service practices. That reputation must be overcome. The POE is intended to set the standard for PCOs in the types of products and services provided. If the POE is utilized by building owners and service providers it can help overcome this negative reputation and stimulate all companies to provide better service for residents because our products and services will exceed those of our competition. The article will appear in the June issue of Private & Wireless Broadband Magazine, which is distributed to some 20,000 individuals nationwide.

ICTA Strategic Task Force

As you well know, the ICTA BOD composition has changed significantly in the past year to reflect our new philosophy and enthusiasm. In addition, our industry is changing rapidly presenting us with many opportunities. Numerous PCOs, MDUs, ISPs and product providers are joining ICTA or are expressing interest in joining our efforts. Many people believe we are at the center of the building-centric approach to the future, and that we could grow dramatically. This presents us with questions such as the following: As a relatively young organization and given our history, where do we want ICTA to be in 1 year, 3 years, etc.? What are our priorities? Which industry segments should we seek out to be members or allow in as members? How should the BOD be structured and with how many members? What size do we want to be and with what budget? What should we be named; are ICTA, PCO, MDU, etc. useful terms of reference? With which other organizations should we be affiliated? How do we pursue an industry Show/Exposition/Conference? Same viz. industry electronic/print publications? And so forth. These are fundamental strategic questions that need to be addressed. Unless we do, we could well become an amorphous mess without a defined charter and direction.

The ICTA President will appoint a Strategic Analysis Task Force to conduct such an analysis and report its recommendations to the BOD at the meeting planned to take place in Las Vegas at the July MDU Conference.

July MDU Conference

Numerous industry players are preparing for the MDU Conference to be held in Las Vegas, July 18 - 21. This is our second such conference and it will be more focused than last year with fewer panels but "Mini-Schools" addressing specific issues in a more intense instructional format. (Program details and registration details ) We hope to attract a greater number of service providers and MDU/REIT users. Therefore, resources have been set aside to provide incentives for you to use in an effort to attract new industry participants. Call them scholarships, price reductions or incentives; if you know of anyone that should attend the events but they need a push, call Bill Burhop and something can be arranged.

Kessler Strikes Again

Our friend Larry Kessler, CEO of InteliCable Group, has led various efforts to improve and advance our collective provider-user industry. The Charleston Technology Conference, magazine and newspaper articles, participation as an instructor at the MDU Conference and numerous communications with the FCC regarding regulatory matters. These are all ways that he has been involved.

Now Larry has been involved in a Texas legal dispute alleging that AT&T/TCI flagrantly forged signatures on service contracts. The US District Court for the Southern District of Texas agreed and issued a ruling most critical of that company. We congratulate Larry on a long and successful legal battle. To learn about the details go hear "AT&T/TCI Liable for Forgery".

It's In the Character

Often times it's not business forces that determine a company's action and interaction with customers and business colleagues. It comes down to the mettle of the man, the ethical and personal standards underpinning an individual. For instance, in the last year four PCOs and one DBS provider have withdrawn membership from ICTA. In the short term, that's unfortunate. In the longer term perhaps it's okay. Three of the PCOs and the DBS provider did so in a ways leaving a bad taste - and not even fulfilling their dues obligations. One PCO left ICTA because it was sold. That company's leader not only provided free office space, equipment and telecommunications for the past 4 years, he also provided untold number of hours of work for our association. As he left ICTA, he also provided an extra quarter's dues and over $6,000 of equipment for our future.

Character makes the person - in all his dealings.