Multiple dwelling unit (MDU) owners and Private Cable Operator (PCO) telecommunications providers have entered a new era. This new era of our business is built on our history, but must be fundamentally different. In the past year, numerous large PCOs have ceased operations or are dramatically downsizing. Many MDU owners are changing their approaches to telecommunications. In this new era, a new breed is stepping forward to lead our revitalized industry. This new breed includes the PCO providers of telecommunications services and the MDU companies that contract with them. Together, we will capitalize on new opportunities to enhance products for MDU residents and, perhaps more importantly, to improve the quality of service provided.

"To lead this new era – new breed – new opportunity, the Independent Cable & Telecommunications Association (ICTA) has reorganized and taken on numerous challenges such as expanding PCO provision of high speed Internet access, expanding PCO use of digital transmission and building even closer relationships between PCOs and MDUs," said Anne Walker, Castle Cable, Inc., Vice President. "No longer can we be an industry association of video providers only. MDU owners and service providers recognize that we have common interests – to serve residents with products and quality service as never before, so that all of us can capitalize on our expanding opportunities and reap financial rewards," she continued.

"After last year’s ICTA MDU Conference, PCO leaders came to many of us in the MDU industry and said, ‘Let’s work together, we have basically the same interests and ICTA is the forum that we can jointly use to solve problems and advance our interests.’ That was the attitude that convinced my company, and other property owners representing over a million units, to join ICTA," said Laurie Baker of Camden Properties. The ICTA’s board of directors (BOD) now includes representatives from 11 MDU companies and the leaders of the new breed of PCOs. In addition, the BOD includes representatives of manufacturers, Internet service providers and DBS platforms.

"Together, providers and users are challenging old concepts and striving to forge a revitalized industry – without deadwood – so that PCOs provide a package of telecommunications products comparable to any competitor and so that MDU occupancy rates are high and our collective profitability is improved," said Rob Solomon, CEO of US OnLine. "This is the kind of leadership necessary to fix the PCO industry and begin a new period of growth through expanded products and improved service, thereby attracting more MDU customers. Obviously, that will translate into greater sales for companies such as Blonder Tongue," was the view expressed by Bob Pallé, that manufacturer’s Executive Vice President.

Lyn Lansdale, Vice President of Ancillary Services, of Avalon Bay Communities reflected this view, "I was hesitant to join the ICTA Board, but when I heard about their philosophy to include users and providers in decision making, to identify mutual problems and to find solutions that are beneficial for our residents, it made a lot of sense. We are in different industries but we have the same objectives, to provide the best possible package of telecommunications products and quality service to MDU residents. If ICTA can help us accomplish that objective, all of our companies’ bottom lines will be benefited because our customers will be happy." She continued, "The ICTA is identifying problems we all need to solve in order to succeed, and collectively we will find solutions."

"I’m pleased to work with this group because the members have the determination and credibility in Washington to lobby Congress and the FCC to remove barriers that stand in our way, such as perpetual contracts and mandatory access statutes," is the opinion of Jim Sweeney, Vice President, Strategic Business Development at Equity Residential Properties Trust. Dave Stehlin, CEO of OnePath Networks, echoed this point, "To help my company’s business, our user – provider industry must address issues such as FCC regulations but we must also challenge our own status quo by identifying problems and devising realistic solutions."

Another facet of our industry association is to remove obstacles which impede the PCO ability to provide residents with desired products. "A few years ago, Internet service was a dream only in the eyes of a few geeks. Now, high speed Internet access is an essential amenity for many MDU residents. That’s why our industry needs to remove negatives such as misinformation and fly-by-night operators. Our building-centric industry must educate more PCOs and MDU owners about how high speed Internet access can be delivered economically so that all parties benefit," is the view of Michele Eilers, Regional Vice President of Broadband Now.

Similarly, the delivery of a digital product through PCOs has become a virtually essential ingredient in the package of PCO products. "It’s no longer adequate for a PCO to provide only basic and enhanced tiers of video if residents want a digital component. DBS has become widespread and we are strongly supporting the industry to provide not only the technology but also alternative business models for delivery of this product. This will benefit the MDUs and the PCOs for enhanced service and profitability," stated Cary Ferchill, President/CEO of WSNet.

Similarly, Ron Keene, Vice President of GateHouse Networks, has this point of view, "The scope of MDU markets in which PCOs can provide service goes far beyond what we have traditionally been serving. We have great new opportunities in senior housing and Planned Unit Developments (PUDs). Those MDU markets are calling out for enhanced PCO products and improved service. ICTA can help lead the way in this direction, also."

Mr. Stehlin also indicated that, "If we are content with the past, we will become extinct. MDU owners and PCO providers working together should build on the positive elements of our history. Then we can alter the future if we have the courage to see our industry’s faults and collectively pursue remedies." A similar view says, "To be sure, as MDU users and providers we confront substantial problems, but even greater opportunities. It was 9 months ago that we identified one such stark problem which continues to frustrate MDUs and hold back PCO growth and profitability," stated Christopher Day, CEO of StarCom. "A number of private operators have utilized business practices which generated negative attitudes among customers and sullied the reputation of our entire industry. We must correct these real and perception problems." He also wrote, "If we do, PCOs have the opportunity to provide better service than the franchised cable companies and can differentiate themselves in ways that attract property owners and managers to the PCO product."

Laurie Baker agreed, "If the new era – new breed – new opportunities promise of tomorrow is to be fulfilled, those negative practices must be changed. If not, the PCO industry will be diminished, leaving the MDU owners and residents with virtually no alternative but franchised cable. That would be unfortunate for all of us and the millions of residents that are our present and potential customers."

In order for MDUs to maintain high occupancy rates and for PCOs to compete with franchised providers, both of our industries must confront the very real service problems that exist. The reputation of the PCO industry has been suspect due to poor operational practices by some operators. That reputation has diminished the appeal of PCOs and must be reversed if an increasing number of MDU owners are to pursue relationships with PCOs.

To address this problem, this article’s authors are leading an ICTA Program of Excellence (POE) Task Force. "Due to our common interests and goals, the MDU and PCO members of ICTA have produced the POE. PCOs that are members of ICTA, recognize that their individual success rests on their ability to serve MDU owners and residents in ways that make private cable the service of choice for MDU owners and residents," states Sue Ansel, Vice President of Gables Communities. She went on, "Multifamily owners recognize that if we want competition to franchise cable, which is essential to the overall improvement of telecommunications products and services for our residents, a viable and high quality PCO industry is critical."

Another ICTA member, Lori Reeves, Vice President of Forest City Residential, had this to say, "Our philosophy is that the best way to promote the PCO industry and the interests of MDU owners and residents is to have well informed, free market negotiations and transactions between all involved parties. This will allow PCOs to differentiate themselves as to their products and services. It will also give MDU owners multiple choices when making decisions about which service providers to choose. Our collective goals are to provide superior products and services, which will produce high occupancy rates, increased sales and commensurate rates of return on our investment. The POE is intended to assist all parties attain these objectives."

The ICTA Task Force has produced a Program of Excellence which includes three components. The first component is the POE Service Standards. The second component is a website where MDU owners and service providers will supply information about their company’s needs and ability to provide telecommunications services which will be disseminated to all interested parties through the Internet. The third component of POE will entail Training and Certification for PCO technical and customer service representatives.

Our view is that the POE will only be meaningful if the Standards are significant and set PCOs apart from and above the competition. The POE Standards are not intended to be monolith, absolute, or applicable in every situation. The Standards are issues to be addressed by the parties in contract negotiations. They are intended to improve the PCO products and services in order to meet their MDU owner’s and resident’s needs and, thereby, increase PCO penetration in the MDU environment. The POE Standards will accomplish the intended purposes if the parties address these issues, to their mutual satisfaction, so that the goals of both parties are accomplished and the resulting contract meets the spirit of the POE.

"My company is pleased to participate in the POE program because it seeks to advance the interests of apartment community residents and MDU owners. The POE program encourages those PCOs that are striving to provide high quality and that use technologies that are comparable to or ideally exceed that of non-PCOs and non-ICTA members," stated Kathleen Keating of Archstone Communities.

We encourage all facets of our collective industry to study the Program of Excellence. Check it out at the ICTA web site: www.imcc-online.org

Then use the POE to capitalize on our New Era – New Breed – New Opportunities.