The Telecommunications Act of 1996: 9 Promises Delivered 9 Promises Due 9 Promises Deferred - Walker and Associates
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Volume XV Issue 2 walkerfirst.com/skinny-wire Insights for ICT Professionals
The Telecommunications
Act of 1996:
9 Promises Delivered
9 Promises Due
9 Promises Deferred
2 Skinny Wire | Summer 2021 | http://www.walkerfirst.com/literature/skinny-wire/
IN THIS ISSUE . . .
My career in telecommunications, and with Walker and Associates,
FEATURE ARTICLES began in 1995, just a year before the landmark legislation known as the
Telecommunications Act of 1996 was signed into law. I clearly remem-
4 25 Years . . . Time for A Refresh
ber its impact as the competitive local exchange company industry
By Gary Bolton, Fiber Broadband Association
boomed, before going bust only a few years later. Those early years of
6 The Competition Constitution the legislation seemed only a tease of what lay in store for the industry.
By Chip Pickering, INCOMPAS Leading the way was the new technology known as VoIP, which would
revolutionize communications networks, and usher in the competition
8 The CLEC Crash of 2000 intended by the 1996 act. As its adoption dramatically increased in
By Doug Dawson, CCG Consulting the early years of the first decade of the 21st century, it upended the
business models of traditional carriers, changed pricing models for
12 Q&A With Mignon Clyburn consumers, and opened the doors for cloud technologies that would
By Broadband Communities Magazine later emerge.
14 Delivering on the Promises, 25 Years Later
While it is fun to walk down memory lane and play “remember when”, a
By John Badal, Sacred Wind Communications
more productive direction is looking forward. The Telecom Act of 1996
18 WISPS Prove Telecommunications Act Worked paved the way for us to get where we are. Knowing what we know now,
By Staff Writers, WISPA can we catch a glimpse of what may lie ahead? Some of our contributors
in this issue might agree.
22 Cullman Electric Powers Gigabit Broadband Speeds
By Ciena Chip Pickering, CEO of INCOMPAS and a member of the
Telecommunications Act Subcommittee, provides a poignant perspec-
25 25 Years of Change tive in his article on page 6. He was deep in the work of crafting this
By Prayson Pate, ADVA landmark legislation, yet he asks the important question “Is our work
finished?” It is a valuable read.
27 Let’s Look to the Next 25 and Beyond!
By Shirley Bloomfield, NTCA
And, the excellent interview between Broadband Communities
30 Utility Broadband Is the New Telco Magazine and Mignon Clyburn that begins on page 12 is a must read.
By Brett Kilbourne, UTC Her perspective as a past FCC Commissioner gives her a unique vantage
point. Along with INCOMPAS CEO Chip Pickering, Clyburn now leads the
48 Last Mile Open Access Networks: Next Logical Step INCOMPAS BroadLand campaign, focused on making “internet for all” a
By Heather Burnett-Gold reality for millions of American families and small businesses, rural and
urban, that lack competitive broadband alternatives that bring faster
RESOURCE ARTICLES speeds and lower prices. Sounds like a page from the Act itself!
17 Rural Electric Cooperatives: Axis of Community Development Industry leaders from associations such as Fiber Broadband Association,
By Juniper Networks Staff NTCA, WISPA and UTC also contributed in this issue, each offering their
own take on how the Telecom Act of 96 influenced success and short-
21 A Service Provider’s Guide to the 3 Changes in WiFi comings along the last 25 years. At a time when funding programs for
By Charles Cheevers, CommScope broadband expansion have never been higher, it is an important time
to assess what worked and what didn’t. Listening to their insight as they
33 Assuring Positioning, Navigation & Timing lobby for their industry segments is an important step.
By Ulrich Kohn, ADVA
And this issue wouldn’t be complete without paying tribute to a real
34 Building Customer Loyalty With Saas Applications
pioneer in our industry, Walker and Associates co-founder, Virginia
By KT Mishra, ADTRAN
Walker. Virginia passed away June 5, and her 94 years were full of
35 Reaching Remote Subscribers With Advanced Technologies accomplishment. For 51 years she was immersed in the industry, span-
ning such milestones as the 1982 divestiture of the Bell System, the
By Harmeet Singh, IPG
Telecommunications Act of 1996, the rise and fall of the dot com era,
37 Premium Services Are Key and the dawn of a new century. She leaves us richer, better, blessed.
By Zyxel Communications Staff
Knowing how we got where we are is always an interesting study, and
40 Smart Communities: Building A Connected Future provides insight into how we move forward. It’s been 25 years of adven-
By Kara Mullaley, Corning Optical Communications ture. Time to move ahead to more innovation, more competition, more
leadership and more success!
47 The Power of Open Optical Networking
By Maria Teresa Chamorro, ADVA
54 Technology Evolved: Helping Businesses Grow Randy Turner
By Alcatel Lucent Enterprise Staff
Editor, Skinny Wire
Director, Marketing Communications
WALKER NEWS Walker and Associates
336-731-5246
5 Walker Joins Nokia Global Partner Program randy.turner@walkerfirst.com
11 Walker Bids Farewell to Virginia Walker SWEditor@walkerfirst.com
41 Virginia Walker Recognized by Fiber Broadband Association
Letters to the editor may be sent to SWEditor@walkerfirst.com.
Opinions expressed by contributors and commentators do not Skinny Wire is a bi-annual publication of Walker and Associates, Inc.
necessarily reflect the views of Walker and Associates, Inc. “Equal Opportunity/Affirmative Action Employer m/f/d/v”
Skinny Wire |Summer 2021| http://www.walkerfirst.com/literature/skinny-wire/ 3
25th Anniversary of The
Telecommunications Act of 1996 –
Time for A Refresh
By Gary Bolton
President and CEO
Fiber Broadband Association
Eighty-seven years ago, President our phone lines to connect our PCs to the their investments were not wasted as
Franklin Delano Roosevelt signed the Internet, and thought a whole new world those assets stayed in the ground. XO
Communications Act of 1934 into law. was opening up when 56 kbps modems Communications, for example, heav-
The 1934 Act provided the legal frame- became available. ily invested in fiber networks and those
work for governing communications fiber assets were eventually acquired by
in the United States at a time when We have long moved away from the Verizon who built upon that investment.
telephone service, both local and long analog PSTN (Public Switched Telephone We also saw the cable industry rapidly
distance (to the extent it existed), was Network) to a digital, packet centric re-purpose and rebuild their networks to
considered a natural monopoly. With world. Today, voice services (VoIP) are create cable modem broadband services
this Act, the Federal Communications just another application on the Internet, during this period, leading to a significant
Commission was created, and interstate video calling globally is the norm, and market share advantage for more than
telephone service was subject to com- the Internet is not something we “dial-in” two decades.
mon carrier rate-based regulation. to, but it has become the fabric of our
lives. And high-performance broadband The 1996 Telecom Act spurred massive
The monopoly world of telephone ser- connectivity reaches most Americans. investment. Capital investment as a per-
vice remained in effect until the 1970s, As we celebrate the 25th anniversary of centage of revenue increased from 21
when MCI and Sprint finally gained entry The Telecommunications Act of 1996, it percent in 1992 to 27 percent in 2001 as a
into the long-distance telephone busi- is a good time to look back and reflect result of what the FCC called the virtuous
ness. As a result of antitrust litigation, on the significant positive impact this cycle. At that time, Internet traffic was
in the early 1980’s, the Bell System was legislation has had on opening up local doubling every 100 days and Wall Street’s
broken up, with the seven “Baby Bells” markets and encouraging significant cap- overvaluation of “dotcoms” – spurred in
divested from AT&T. And 15 years later, ital investment that has resulted in our part by Worldcom’s fraud -- resulted in a
as the Internet emerged in the 1990’s, we networks proving invaluable as we work, severe market correction. While market
saw first major overhaul of the 1934 law, learn and live at home during the COVID forces culled out non-sustainable busi-
referred to as The Telecommunications emergency. nesses, the fact remains that the open-
Act of 1996, which opened local mar- ing of markets and more competition
kets and affirmed the FCC’s policy of The ’96 Act required local government resulted in the necessary investment to
distinguishing between regulated tele- to let in competition, opening up local build the network we enjoy today.
communications services (referred to by markets. As the Act was signed into law,
the FCC as “basic services”), and unregu- we witnessed an immediate gold rush The Times Are A-Changin’
lated information services (“enhanced of new market entrants and a wave of But given the very significant changes
services”). A lot has happened in the innovation and investment, fueled by the that have occurred in the 25 years since
25 years since the ’96 Act, but it is clear tailwinds created from the emergence of The Telecommunications Act of 1996,
that the industry, regulation, and most the Internet. Within 8 years of the Act, now is the time to address the outdated
importantly our lives have been changed Verizon announced its plans to invest parts of the Act. And while the networks
forever. $18B in deploying fiber optics across its held up well under the real-world “stress
nationwide network. The Verizon invest- test” caused by the pandemic, it revealed
Back in 1996, our world still revolved ment eventually led to entry by Google how critical a reliable and robust Internet
around “plain old telephone service,” Fiber and many other fiber providers is to our lives. Thus, we must set a goal
even though the Bell System had been and, and we now have 55M homes that to bring future proof, all fiber networks
broken up in 1984. Long distance com- have access to fiber broadband across to all Americans, paving a path for future
petition had taken root, but local markets our nation. While we did see the dot.com services, such as smart grid moderniza-
were just beginning to open. As the bubble burst in the early 2000’s, result- tion, public safety and 5G. To achieve
Internet emerged in the mid-nineties, we ing in a number of CLECs (Competitive this, a new Telecom Act needs to achieve
plugged 14.4 Kbps analog modems into Local Exchange Carriers) going bankrupt, the following:
4 Skinny Wire | Summer 2021 | http://www.walkerfirst.com/literature/skinny-wire/
“ . . . we must set a goal to bring future proof, all fiber networks to
all Americans, paving a path for future services . . .”
1. We must continue to encourage and most markets have multiple provid- We also should consider how to better
facilitate new market entry, which is ers offering advanced telecommuni- integrate privacy, cybersecurity and sup-
a key driver to providing choice for cations and broadband service and ply chain considerations into our com-
consumers. are open to further entry. And the munications policymaking.
2. We must reduce broadband deploy- flip-flopping, depending on which
ment barriers, including by imple- party controls the FCC, to rely on We are long overdue for Congress to
menting such policies such as “one such Title II regulatory authority to revisit The Telecommunications Act of
touch, make ready”. impose “net neutrality” regulations 1996 and make the necessary chang-
3. We need to get rid of the over- has to come to an end. es that will spur continued investment,
hang of Common Carrier Regulation 4. We must support deployment in all innovation and serve all Americans for
(structured in 1934 for a monopoly areas that fall on the wrong side of the next twenty-five years.
asset) to removed disincentives to the digital divide.
investment and innovation. To put it 5. We must aggressively address
simply- Common Carrier Regulation Affordability and Adoption with long-
is a square peg in a round hole when term solutions.
Gary Bolton
President and CEO
Fiber Broadband Association
Gary Bolton serves as president and CEO of the Fiber Broadband
Association — the largest trade association in the Americas dedi-
cated to all-fiber-optic broadband. With more than three decades
in the telecom industry, Bolton joined the Fiber Broadband
Association as president and CEO in 2020 after serving on the
association’s board as vice chairman, treasurer and vice chairs of
public policy and marketing committees.
Walker and Associates, Inc. Joins Nokia
Global Partner Program to Help Power
Utilities Accelerate Digital Transformation
Walker and Associates, Inc., announced earlier this year that it GHz) and E-Band (80 GHz), leveraging Nokia Bell Labs innova-
had signed a channel partner agreement with Nokia. tion. It gives the maximum efficiency thanks to 100% Carrier
Aggregation, including all 5G backhaul use cases across different
As a result of this relationship, Walker and Associates will mar- frequency bands.
ket and distribute Nokia’s product line of Industrial-grade Private
Wireless solutions alongside the industry-leading Wavence™ Gus Vasilakis, Vice President of Marketing, Walker Associates,
microwave packet radio portfolio to help utilities be future-ready made the announcement: “Nokia’s leading range of private LTE
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and decades of industry experience to support 260+ private wire- Vikas Trehan, Head of Partner Sales – North America, said: “The
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Skinny Wire |Summer 2021| http://www.walkerfirst.com/literature/skinny-wire/ 5
The Competition Constitution: How
Bipartisanship Defined the Telecom Act of
1996 and Lights the Path to the Future
By Chip Pickering
CEO
INCOMPAS
Landmark. Transformative. Forward would make the United States the global petitive auctions, which would help facili-
looking. As we celebrate the 25th birth- leader in the technology sector, and build tate the explosion in the wireless market-
day of the Telecommunications Act of the greatest economic engine in human place and required competition from the
1996, these are some of the most fre- history. start. Congress leaned on competition
quently used words to describe it. policy like interconnection, interoperabil-
As a staffer working for Sen. Lott, it was ity and portability, which would come to
But one word was, and always will be, at one of the great honors of my life to be define the wireless marketplace, where
the top of my ‘96 Act list: bipartisan. hunkered down in those rooms, sur- multiple competitors supercharged inno-
rounded by mountains of pizza boxes, vation and lower prices drove massive
When I speak with people today— negotiating alongside men and women consumer adoption.
Members of Congress, staff, journalists from both parties. We all had differ-
or voters—it’s hard for them to wrap ent ideas, but ultimately came together From there, the ‘96 Act negotiations took
their heads around the idea of a such around one core goal. shape around the idea of allowing seg-
a major, consequential piece of legisla- MAKE COMPETITION THE LAW mented long distance, local phone car-
tion passing by overwhelming margins in It was a moment we had been building riers (yes, hard to believe that was a
both the House and Senate. toward for a long time. Conservatives like thing) and cable to compete against one
myself believed free market principles another. Back then, the idea of creating
You have seen the photos from the mag- should guide telecommunications policy. a wholesale marketplace to allow resale
nificent Library of Congress with giants We had watched Ronald Reagan success- of services at discounted rates, was a
like House Speaker Newt Gingrich and fully break up AT&T. We saw competition unifying proposition. It worked in other
Senate Majority Whip Trent Lott, stand- come in and prices go down. A new net- markets, and helped to enable smaller,
ing with President Bill Clinton and Vice work, one that would become the back- start-up players to compete on price,
President Al Gore, with Clinton holding bone for the internet economy, emerged. customer service and innovation.
a digital pen. Keep in mind this was just
a few short months removed from a bit- Leading Democrats, like then Rep. Ed And innovation has been key. Because
ter federal government shut down that Markey and Rep. Anna Eshoo, with whom when you look at the network innova-
divided our nation. It made the moment I would go on to serve alongside in the tions that have reshaped the telecommu-
of unity all the more special. House on the Energy and Commerce nications industry–Ethernet, VOIP, cloud
Committee, had long championed the and fiber–all those innovations came
But to truly understand how the bipar- needs and rights of consumers who had from smaller competitive providers look-
tisan compromise was forged, you seen artificially inflated telecom prices ing to shake up the marketplace.
have to look deeper to less glamor- hurt consumers and small businesses in
ous conference rooms in basements of the pocket book. The Act also included the E-Rate pro-
Congressional office buildings, where gram, because Members wisely saw the
Members and staff spent countless Moving from monopoly systems to net- benefit of digital education. Wiring all our
hours of many months (indeed, several works governed by competition takes schools and libraries has had a transfor-
years and Congressional sessions) ham- work. President Ronald Reagan didn’t mative impact on neighborhoods large
mering out the details of a roadmap that magically end Ma Bell’s dominance, and and small and helped us prepare our
in truth, it’s a fight that continues today. workforce for massive change. Ensuring
“ . . . one of the But the legislative conversations that
build toward the ‘96 Act started with the
that these anchor institutions, and the
kids, seniors and families who rely on
most important 1992 Cable Act. It allowed and enabled
satellite television competition, a move
them, always have access to the fastest
speeds is critical, and the evolution of the
pieces of legislation that shifted us from satellite dishes the
size of a barn door to the 12-inch model.
E-Rate program has only become more
important because of COVID-19.
to come out of Competition in television brought more
channels, more creative content and Finally, the ‘96 Act also included Section
Congress in the more choice. 230, language that ensured that new
internet companies would have liability
past 50 years. “ Next Congress moved to make more
licensed spectrum available through com-
protection and the freedom to innovate
and grow without fear of legal teams
6 Skinny Wire | Summer 2021 | http://www.walkerfirst.com/literature/skinny-wire/
from giant incumbent players—from all
industries including telecom, software,
hotel and travel—burying new ideas
pieces of legislation to come out of
Congress in the past 50 years. “ Competition
before they got out of the gate. IS OUR WORK FINISHED?
ABSOLUTELY NOT has always
been the
If you watch the floor speech when the Tens of millions still lack broadband
’96 Act moved through the House and connectivity. Hundreds of millions are
Senate, two unifying themes emerge: still being denied competition and cost-
Competition and the need for the U.S. to
be the global leader in the race for new
technology and the jobs it brings. That
saving broadband choice – especially
at home. And while the United States
led the world in the tech space over the
cure for
is what Senator Fritz Hollings, Senator
Larry Pressler, then-Rep. Ed Markey,
past quarter century, the race isn’t over.
Other nations are investing heavily into complacency.”
Rep. Tom Bliley Jr., Rep. John Dingell, tech and building superfast symmetri-
Rep. Jack Fields and many others want- cal gigabit speed networks. nation and connect every American to
ed—the opportunity for the jobs of the broadband.
future to be made in America. And that But competition has always been the
is exactly what happened—our technol- cure for complacency. And just as we That is what the bipartisan leaders in
ogy sector is the envy of the globe. need to remain vigilant in protecting 1996 were counting on—that we would
our constitution and democracy, we continue to put policy above politics,
Today, the ‘96 Act is still sturdy and must heed the call of the bipartisan faith in each other and unite around
strong, flexible and forward looking. ’96 Act to prioritize competition and our commitment to building a better
Independent Senator Angus King called continue to create opportunities for future filled with opportunity for all
the Act, one of the most important all innovators from every corner of the Americans.
About the Author
Chip Pickering has been CEO of INCOMPAS since January 2014. During that time, INCOMPAS has achieved significant growth
with leading internet, backbone, business broadband, wireless, and international companies. Under his leadership, INCOMPAS
has led numerous public policy campaigns promoting competition through an open internet and in the business broadband
market.
Pickering was a six-term Congressman representing Mississippi’s Third District. During his time in the House, he served on the
Energy & Commerce Committee, where he was vice chairman from 2002 to 2006 and a member of the Telecommunications
Subcommittee.
He also was co-chairman and founder of the Congressional Wireless Caucus and an assistant minority whip of the House.
Previously, Chip worked for Sen. Trent Lott (R-Miss.) and served as a staff member on the Senate Commerce Committee, where
he helped shape the Telecommunications Act of 1996.
Because of his role in drafting the 1996 Act, he became well known as a Congressional leader on telecommunications issues. While in Congress,
Chip served as chair of the subcommittee overseeing the transition to the commercial internet, the establishment of domain names, registries,
and internet governance. He also successfully led a bipartisan legislative effort to codify net neutrality principles through the House in 2006.
INCOMPAS represents Internet, streaming, communications and technology companies large and small, advocating for laws and policies
that promote competition, innovation and economic development. Throughout the year, INCOMPAS also and provides opportunities to
learn, grow business and network at annual events, including The 2021 INCOMPAS Show, taking place October 25-27 at The Cosmopolitan
in Las Vegas.
The act’s legislative history reflects the goal of Congress:
“to accelerate the deployment of an advanced capability
that will enable subscribers in all parts of the United States
to send and receive information in all its forms—voice, data,
graphics, and video— over a high-speed switched, interactive,
broadband, transmission capability.”
Skinny Wire |Summer 2021| http://www.walkerfirst.com/literature/skinny-wire/ 7
The CLEC Crash of 2000
By Doug Dawson
President, Founder
CCG Consulting
2021 is shaping up to be one of the stood margins to be small and some had DC and Baltimore markets – places they
most unusual years in the history of the business plans that planned to eventu- knew well after years of being a Verizon
telecom industry between the pandemic, ally build fiber facilities to replace some agent selling to businesses. This CLEC
giant grants, and supply chain issues. of the leased telco copper. was pushed by investors to go public
But for those who’ve been in the industry and was forced to adopt a business plan
for a while, 2000 was also a memorable In the late 1990s, the expansion of CLECs of expanding to almost a dozen mar-
year. This article tells a brief story of the turned into an economic craze. The driv- kets within just a few years. Unless the
telecom crash of 2000, which shaped the er of the craze was the high stock prices company agreed to the fast expansion it
industry for the following two decades. earned by the first few CLECs that went wasn’t going to get funded for serving the
public. Part of the reason for the high two markets where it could have been
The telecom crash was the eventual cul- valuations was that telecom companies successful.
mination of the changes made with the were riding the coattails of the many dot-
passage of the Telecommunications Act com web-based companies that were The magnitude of the dot-com and CLEC
of 1996. Among other things, this law cre- also going public at the time and gaining craze was mind-boggling. From 1995
ated the new CLEC industry by requiring huge valuations. The high stock prices until March 2000 the NASDAQ grew over
the large incumbent telephone compa- and valuations in the industry convinced 400% in total valuation, fueled mostly by
nies to sell access to their networks in the investor groups to build a CLEC business these two industries. As happens with all
form of unbundled network elements plan to also go public. The expansion overheated industries the reality eventu-
(UNEs) and resale. Congress had passed craze quickly grew to be irrational. At one ally caught up with the exuberance. As
this law to promote competition in the point I remember counting eight CLECs some of the original dot-com and tele-
local telephone business in the same way with published business plans to each com companies started to miss earnings
that the divestiture of AT&T had intro- capture a 15% to 20% market share in expectations, the stock market took a
duced long-distance competition a few Atlanta. It was becoming quickly obvious pause. In March 2000 the first decline
years earlier. to industry insiders that the CLEC growth in stock prices occurred and this quickly
craze was impossible and unsustainable. mushroomed into catastrophic losses. As
The Act worked better than envisioned. analysts took a harder look at the busi-
Within a few years, there were hundreds One issue that drove the craze was ven- ness plans of the dot-coms and the tele-
of new CLECs including a few dozen dor financing from vendors like Lucent, com companies, the value of the stocks
with large financial backing. It seems Nortel, Cisco, Motorola, and Alcatel. plummeted.
that everybody thought they could make These vendors offered large lines of cred-
money by selling services over the facili- it to many up-an-coming CLECs to buy As a result of the 20000 crash, some
ties of the large telcos. My consulting tens of millions of dollars of electronics. major existing telecom companies like
firm was founded in 1997 in reaction to The vendors clearly bought into the craze Worldcom, NorthPoint Communications,
the 1996 Act. My math showed that there and were convinced that many of the and Global Crossing failed and closed.
was a relatively small margin to be made larger CLECs would be able to meet their Telecom vendors lost huge value with
from collocating and selling service over business plans. Within just a few years Cisco stock dropping 86%. Dozens of new
telco copper and an even smaller margin there were dozens of CLECs with plans CLECs failed outright. The losses by 2002
from reselling telco services. Yet some- to go public, and the combination of ven- were staggering. Half a million people
how, CLECs were finding the funding to dor financing and enthusiastic investors lost jobs. The Dow Jones communica-
create giant CLECs that would operate pushed the CLECS forward. The funding tions index lost 86% of its value, the wire-
in multiple markets, with the idea that was often irrational. My consulting firm less index lost 89%. The NASDAQ quickly
economy of scale would make up for the had one CLEC client that had a solid gave back all of the gains.
small margins. Many of the CLECs under- business plan to serve the Washington
8 Skinny Wire | Summer 2021 | http://www.walkerfirst.com/literature/skinny-wire/
The crash affected every aspect of the
industry. My consulting firm is a good “The magnitude of the dot-com and CLEC
example. CCG Consulting was founded
in 1997, directly in response to the 1996 craze was mind-boggling. From 1995 until
Act. Our original business plan was to
help CLECs get started along with helping March 2000 the NASDAQ grew over 400%
carriers open new markets. We got lucky
in that we leveraged our familiarity with in total valuation, fueled mostly by these
the small telco market to help telephone
companies and other small CLECs expand two industries.”
into nearby markets. We helped only a
few of the high-flying CLECs and no client But there were many negative impacts Anybody that was in the industry at the
was more than 5% of our business. At the of the telecom crash. Probably the time of the crash remembers the sense
peak of the market, there were probably worst outcome, other than the failure of of doom that hung over the industry. It
100 consulting firms that had hung out a multiple CLECs, was that the big telcos seems that there were negative head-
shingle since 1996, including a few that regained control of the industry. The lines almost every day for several years
went public along with their CLEC clients. marketing battle between cable modems after March 2000. Companies failed or
When the market crashed, our firm had and DSL started in earnest around 2000. declared bankruptcy. Vendors folded or
to downsize, but we survived and only It became quickly apparent that cable were forced to merge to keep afloat.
a tiny handful of consultants made it technology was going to win the speed The big telcos crowed about their vic-
through the 2000 crash. battle, and we’ve seen a migration of tory over the CLECs and began tighten-
DSL customers to cable companies ever ing the noose and restricting the ability
There was some good news that came since. to compete for the CLECs that somehow
out of the telecom boom. Numerous made it through the crash. Since then,
companies built middle-mile fiber routes Instead of dozens of hungry CLECs to cable technology has won the broadband
during the expansion years, and at compete against the cable companies, battle. I think, however, that the next
the time of the crash, the fiber routes the market saw predictable competi- cycle of competition has begun and we’ve
between Washington DC and New York tion from the telcos. The idea of real reached the inflection point where fiber
City were only at about a 2% utiliza- local competition didn’t resurface until networks will start winning customers
tion. The excess fiber went on to sustain a decade later when Google Fiber and back from cable providers.
the broadband growth for the next two a handful of municipalities began com-
decades and has just recently started to peting with fiber against the duopoly
show signs of saturation. providers.
Doug Dawson is the President and founder of CCG Consulting – a full-service telecom con-
sulting firm with over 1,000 clients since 1997. CCG offers a full range of telecom services
including engineering, regulatory compliance, business planning, strategic planning and
implementation services. One of Doug’s areas of emphasis is helping clients find financing
for network expansion.
Doug has worked in the telecom industry since 1978 and has both a consulting and an
operational background. Doug writes a daily blog called Pots and Pans by CCG.
CONTACT DOUG DAWSON
202.255.7689
blackbean2@ccgcomm.com
https://potsandpansbyccg.com/
Skinny Wire |Summer 2021| http://www.walkerfirst.com/literature/skinny-wire/ 9
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10 Skinny Wire | Summer 2021 | http://www.walkerfirst.com/literature/skinny-wire/Walker Bids Farewell To
Its Legendary Co-Founder
and Matriarch,
Virginia Walker
By Randy Turner
Director, Marketing Communications
Walker and Associates
Virginia Walker was always a fixture in company on the belief that associates
the company she and her late husband,
Chris Walker, co-founded in 1970. During
were a cornerstone of success, and that
the method of putting the right people in
“Virginia’s
its earliest days, she managed all back
office tasks while he traveled on sales
the right places always led to successful
customer outcomes. This represented an
leadership and
calls. His direct work with customers
generated plenty of work for her, rang-
additional opportunity to connect talent
with business objectives as these new
determination are
ing from managing orders, handling cus-
tomer service calls (both inbound and
associates rolled into the Walker family.
an inspiration to
outbound), ensuring delivery of product,
bookkeeping, and more. And, she was
It was only in 2014, when the company
reached its 44th year of business, that
all women, and it
managing a household that included four
young children! They each learned to
Virginia made the decision to pass the
leadership torch to her youngest daugh-
was my pleasure to
take on helpful roles as well, doing fil-
ing, keeping the office tidy, and learning
ter, Chrystie Walker Brown. Virginia
turned 88 that year! Even in retirement,
honor her . . . “
what it meant to have a family owned she kept in touch with the business, its learned that people will forget what you
business. associates, and company business part- said, people will forget what you did,
ners. Until the end, she remained a vital but people will never forget how you
Following Chris’s death in late 2000, part of the Walker and Associates story. made them feel.” Her son, Mark Walker,
Virginia assumed the mantle of CEO, described his mother as “an oasis of
leading the company through its dark- In December, 2020, the Fiber Broadband peace.”
est days as the telecom industry reeled Association honored Virginia with their
from the dot-com bubble burst, indus- annual Chairman’s Award. This award Virginia’s selflessness over the years, her
try scandals, the tumult following 9/11, celebrates the outstanding contributions easy connection with people, and her
and emergence of new technologies that of individuals in the industry who have strength of character carried her well
ushered in dramatic changes. Typical advanced the fiber-to-the-home (FTTH) throughout her 94 years. Even to the
of her nature, she jumped right into industry. Katie Espeseth, Vice President of end, she had a genuine way of prioritiz-
the work at hand, made sure associates New Products, EPB and Fiber Broadband ing others above herself. Her gifts of
knew they had the support and resourc- Association Board Chair stated “Virginia’s goodness and grace will be remembered
es needed to be successful, attended leadership and determination are an by family, friends, associates, business
industry events, communicated with the inspiration to all women, and it was my partners, caregivers, and anyone blessed
company about progress and strategies, pleasure to honor her at this forum.” to have been a beneficiary of her deep-
and connected with the supplier base to rooted belief that dignity is a gift we all
demonstrate steadiness at the helm. Her The company came together Monday, have the power to bestow on others.
younger son, Mark Walker had already June 15, to celebrate her memory, joined
assumed the role of company president, by Virginia’s children and grandchildren. A memorial video is available
and his siblings, Rick, Laura, and Chrystie It was a beautiful tribute and a special at https://www.youtube.com/
remained involved as Virginia kept the time of reflection. Current and past asso- watch?v=mJGc7501IWM&t=21s
course to see the company return to sta- ciates paid tribute to her leadership, her
bility alongside the industry. kindness and her legacy. She will always In lieu of flowers, memorials may be
be remembered for her contributions, directed to Trellis Supportive Care, 101
In 2009, under Virginia’s leadership as but she will be most revered for the qual- Hospice Lane, Winston-Salem, NC 27103.
CEO, the company acquired the non- ity of life she lived.
affiliate operating assets of Windstream
Supply, scoring not only increased mar- In her comments, Chrystie Brown quoted
ketshare in the company’s selected mar- poet May Angelou as a testament of her
kets, but by also onboarding valuable mother’s commitment to honoring those
talent. Virginia and Chris had built the with whom she came in contact: “I’ve
Skinny Wire |Summer 2021| http://www.walkerfirst.com/literature/skinny-wire/ 11Q&A with Mignon Clyburn:
On How the 1996 Telecom
Act Unleashed a New Era of
Competition
Former FCC Commissioner Mignon what the mobile broadband space has
Clyburn has had a long history as a done. It has opened the doors of oppor-
champion of telecom competition. tunity. This includes everything from my
During her FCC tenure, she was a pro- nine-year-old niece, who can recite half
ponent of key broadband measures, the songs on TikTok, to how I embar- are not. Hindsight is 20/20. There are
such as net neutrality, pole attachment rassed my father, James Clyburn (House some players that might say that they
reform, municipal broadband and tele- Majority Whip (D-S.C.), via social media would have loved a few more guardrails
health. Along with INCOMPAS CEO Chip when I uploaded him in front of a bar- here and there. Just looking through
Pickering, a former Republican member beque grill. He is not known for grilling. today’s lens, there are local leaders and
of Congress from Mississippi, Clyburn entrepreneurs who say they want more
now leads the INCOMPAS BroadLand If you think about what the world looked protections here or there. Also, I would
campaign, focused on making “internet like 25 years ago, a lot of these things say that The Telecom Act in and of itself
for all” a reality for millions of American were not possible. The Telecom Act has was very enabling. It did not assume that
families and small businesses, rural and opened incredible windows of opportu- this would be a one-size-fits-all experi-
urban, that lack competitive broadband nity for big players, but also for smaller ence by way of technology or by way of
alternatives that bring faster speeds and players who are now big players. When community interest. There still are tre-
lower prices. we think about the big names we knew mendous opportunities for us to tailor
back then, they were household words. via regulatory next steps, public-private
While the BroadLand campaign is new, But I didn’t post the video of my dad grill- partnership (P3) opportunities, and com-
its genesis can be traced to the landmark ing on any of those players’ platforms. munity empowerment.
1996 Telecom Act, which celebrated its That video now has 80,000 views. I use
25th anniversary earlier this year. Clyburn that homegrown example to show that If you were to force me to say one
reflected on how the 1996 Telecom Act the baton has been passed to other play- word about the Telecom Act other than
provided a template to enable competi- ers. It has enabled access to other oppor- competition, I would say: unleash. It
tion and new innovations. tunities and access to new information. unleashed boundless opportunities. It
allowed and enabled us to face several
Broadband Communities had the oppor- We now have access to people, no mat- challenges. I think if you were to look at
tunity to speak with Clyburn shortly after ter where they are or whether they have that scale, it has done way more positive
INCOMPAS announced the formation of the same or similar platforms and con- by enabling next steps. We would have
the BroadLand initiative. Following are nections. This is a U.S. milestone, but not had conversations about broadband
highlights of the conversation. we can’t ignore that the Telecom Act or the digital divide if it wasn’t for this
recalibrated what the world that knows legislation. There are very few perfects.
Broadband Communities: The today. The Telecom Act had international I am sure there are some, but the 1996
Telecommunications Act of 1996 became ramifications that we’re continuing to Telecom Act has enabled us to be our
law in February 1996. Now that we build upon and continuing to modify better selves and have access to better
reached the 25th anniversary earlier this in ways to make sure the opportuni- opportunities. It is a valid question, but I
year, what has it meant for the commu- ties before us are more widespread and think the mystery behind it all is the chal-
nications industry? And what are lessons more ubiquitous. Though it has opened lenge and opportunity.
from the last 25 years that can inform the some doors, there are some doors still
next generation? stuck in some parts of this country. We’re BBC: One of the key provisions of the act
forced in real time to reflect and say, was the E-Rate program. Though E-Rate
Mignon Clyburn: When you talk about “Did this do exactly what we wanted it to offers funding to bring connectivity to
the significance of this silver anniversary, do?” The answer is yes, but then there’s a schools, students still struggle with little
I would sum it up in one word: competi- “but” behind that. This is why INCOMPAS or no connectivity at home. What can be
tion. It made competition the law. It has embarked on the BroadLand initiative. done to help bridge the homework gap?
kept a promise to consumers and busi-
nesses that there will be more choices BBC: Did the Telecom Act drive new MC: No one is going to fix it all. E-Rate,
going forward, better customer service, competitors in the telecom market? What the Emergency Connectivity Fund (ECF)
lower prices and access to innovation. could have been done better? and other reforms that we have seen
The Telecom Act of 1996 codified the since the Telecom Act at the FCC have
commitment to lead the world in net- MC: It’s always easy to ask that question. paved a way for us to learn more and see
work growth to give consumers an over- I always say bills are snapshots in time. the benefits of investing more. Just think
all better experience. People look at lawmakers as if they’re about if we did not launch the Telecom
genies and they are not. They look at Act of 1996, would we have seen and
Let’s look at what has happened. Look at laws as if they are all powerful and they planted those seeds of more opportuni-
12 Skinny Wire | Summer 2021 | http://www.walkerfirst.com/literature/skinny-wire/“We would have not had conversations about broadband or the
digital divide if it wasn’t for this legislation. There are very few
perfects. I am sure there are some, but the 1996 Telecom Act
has enabled us to be our better selves and have access to better
opportunities.”
ties via these programs? Would we have as what’s needed in Los Angeles, for nerships (P3s). While there are various
been at the point where we could say, example. methods to structure those between pro-
‘Look at what’s worked and what we still vider and community, how could P3s get
need?’ I don’t think there would not have What we are seeing now is an emphasis broadband into more households and
been an Emergency Connectivity Fund, on empowering, enabling and encourag- businesses?
or at least not in its current form if we ing public-private partnerships. What we
did not set up a template when it comes do know is that no matter what the fund- MC: Public and private partnerships are
to that. ing apparatus is or what is budgeted, drawing attention to areas that have
we’re not going to be able to fix it all been attempting to heal themselves.
Snapshots in time are good and allow us through an appropriation model. We’re When I talk about different positions
to plant the seeds of possibility and to not going to be able to identify it all from being off the table, it has enabled all of
keep building. Regardless of who came Washington, D.C., so these local leader- us to see more potential and do things
up with the phrase “Build Back Better,” it ship partnerships are important. together. I think there were some busi-
is a motivational North Star not because nesses that wanted to serve – including
of the politics, but because of the oppor- We see it in Los Angeles, which is work- members of INCOMPAS – but there were
tunities and the potential. It recognizes ing with Microsoft and Starry, to look at barriers in place.
that the foundation was a solid one. what’s going with low-income housing
units. There are communities that want to do
We need to meet the needs of children more things, but there were real or per-
and seniors – we’re talking about contin- We talk about broadband for all. We all ceived barriers in place. With all of us
ual learners and people who need con- recognize that broadband not only fuels having our lenses either recalibrated or
tinual access to health care. Also, there’s opportunities by way of providing more adjusted, I think you’re going to see more
a need for businesses to be able to apply access for children, but also for seniors. P3s. The reason is because there are
for funding online. We’re building from Thinking about my twilight years, this is members, such as those in INCOMPAS,
the Telecom Act and hopefully subse- empowering for me. that have the expertise and the where-
quent acts and subsequent programs withal, but they need more of the other
will continually do it better. I give credit The 1996 Telecom Act will continue to element to make it to scale, affordable
to the George H.W. Bush administration’s be the compass in terms of competition, and accessible.
“Points of Light” concept. When we speak partnerships and opportunities. There
about what the times call for, I think the are too many places in South Carolina Because of what we’re seeing in Congress
’96 Act was an incredible opportunity for that lack sufficient broadband. I have and because of what was birthed through
us to see what’s possible through legis- been to these communities. When I first the Telecom Act, more of us see that we
lation, recognizing that businesses are got on the FCC, I could not come home can do this in a collaborative way and
organic partners. At the end of the day, without someone telling me, ‘We need do it more efficiently, quickly and less
it’s about improving subsequent genera- broadband.’ Too many people don’t have expensively. There will be a growth of
tions in terms of access to opportunities. access because affordability is an issue. P3s in ways and forms that we did not
We can’t ignore that. see before. That’s another reason why I
BBC: Are there incentives the FCC could am so positive working on the INCOMPAS
provide to help providers extend ser- The “build it, they will come” mentality BroadLand initiative.
vices to homes to support a hybrid or must be accompanied with the other bar-
all-remote learning environment? riers to access. We must build networks Two to three years ago, the support for
efficiently, but providing access to the P3s was not there. Now we’re having
MC: One of the things you are seeing infrastructure via affordable platforms fewer arguments about what communi-
and hearing is that no two communi- and services is important, too. We have ties need. I am not going to argue over
ties are the same. Communities have a chance to right the wrongs of the what speed is what, but I know that it’s
different needs and the ability to have past and an opportunity to build a bet- not sufficient. If grandma is talking to her
tailored solutions is critical. Though we ter future. That is what is I am seeing. medical provider, a third grader is doing
need to write a prescription, we must I have never been more positive about homework and a parent is attempting to
always know that what I need in the the series of next steps in my 19 years of reskill, that’s a lot of bandwidth demand
not-so-affluent community in Columbia, regulatory experience. We’re not debat- in that home that – especially if they are
South Carolina, is not what’s needed 20 ing the basics. That’s why I remain posi- income-challenged – they don’t have.
miles up the road in the same county, tive and why I am part of the BroadLand Finally, we’re seeing how we can get the
where there are even more significant campaign. speeds and infrastructure that house-
challenges. The things that I need here hold needs.
are not the same, nor are they the same BBC: You mentioned public-private part-
Cont’d on page 45
Skinny Wire |Summer 2021| http://www.walkerfirst.com/literature/skinny-wire/ 13Sacred Wind Communications:
Delivering on the Promises 25 Years Later
By John Badal
CEO
Sacred Wind Communications
Sacred Wind Communications, Inc. is to the pandemic, let’s look back at the vices and pricing should be comparable
one of the newest Rural Local Exchange telecommunications landscape of those in rural areas to those of urban areas.2
Carriers (RLEC) in the country, found- times.
ed in 2006, and one of around 2,500 Unfortunately for many rural custom-
Internet providers doing business in The Internet, originally a creation of the ers, there was no indication in the Act
the U.S. Operating a regulated phone Defense Advanced Research Projects of how they were to receive comparable
company while providing unregulated Agency (DARPA), would have remained access to advanced services at compara-
(of sorts) broadband service through an an interesting laboratory experiment ble rates. Rural areas, especially those of
affiliate has been a privilege while a feat between universities without the nearly the Bell Operating Companies, just had
not meant for those adverse to change. ubiquitous fiber routes that had been to wait as competition and new services
Using an interwoven mix of fiber, cop- awaiting the World Wide Web. The accel- exploded in the late 1990s, benefitting
per and fixed wireless systems atop an erated growth of fiber in the U.S. was large and medium sized markets. In
IP platform, the company was able to a direct result of the competition for hindsight, our policymakers should have
extend voice and broadband service to long distance markets led by MCI and constructed a better path to comparable
over 3,000 square miles of Navajo tribal Sprint against the AT&T monopoly. From service access in rural areas by creat-
lands in New Mexico that were virtually a rural telecommunications company’s ing financial incentives to have RLECs
unserved. Such are the benefits of oper- perspective, that competition, leading to acquire neighboring unserved rural
ating a diversified and scalable network, the breakup of Ma Bell, and culminating areas. By way of USDA low interest loans,
its customers found Sacred Wind ready in the Telecommunications Act of 1996, FCC Universal Service Fund support, and
for the Covid-19 pandemic, and tribal blew the doors off of business as usual. a special dedication to properly serve
and local governmental jurisdictions out- Not that there was any mention of RLECs their rural communities the RLECs knew
side of its operating territory are cur- or any kind of a road map toward rural how to reach underserved areas. But,
rently seeking its counsel. information services in the Act. On the outside the Act and concurrent with the
contrary, entire sections of the Act were larger market dynamics stimulated by
On the 25th anniversary of the passage dedicated to the Bell companies’ leasing the Act, the FCC had begun to freeze the
of the Telecommunications Act of 1996, of unbundled network elements in com- creation of new “study areas”, which dis-
one might ask whether the impact of the petitive markets and entry into manu- incentivized the very rural service prob-
Covid-19 pandemic on the world would facturing, creation of eligible telecom- lem solvers (the RLECs) from providing
have been worse without the Act. Or, for munications carriers, and provisions to their network solutions to areas beyond
that matter, would the medical remedies stimulate competition. There are essen- their own service territories.
for the virus have been discovered so tially only two components in the Act that
quickly without the information and com- signaled to the RLECs safeguards or even Change came to rural areas, therefore,
munications infrastructures that were growth for rural carriers: the first, an more as an indirect than a direct con-
enabled by the Act? But, before those assurance that the principle of Universal sequence of the Act, driven by the very
members of the 1995-1996 Congress Service would be maintained1, and the technological advancements in our
take credit for the world’s quick response second, a mandate that advanced ser- industry that spurred the breakup of
1
Section 254.(b).(4) “EQUITABLE AND NONDISCRIMINATORY CONTRIBUTIONS.—All providers of telecommunications services should make an equitable and non-
discriminatory contribution to the preservation and advancement of universal service.”
2
Section 254.(b).(3) “Consumers in all regions of the Nation, including low-income consumers
and those in rural, insular, and high cost areas, should have access to telecommunications and information services, including interexchange services and
advanced telecommunications and information services, that are reasonably comparable to those services provided in urban areas and that are available at
rates that are reasonably comparable to rates charged for similar services in urban areas.”
14 Skinny Wire | Summer 2021 | http://www.walkerfirst.com/literature/skinny-wire/AT&T, that mandated equitable ratemak-
ing in rural areas (which was structur- “With less than thirty percent of Navajo
ally incongruent for the Bell Companies),
and then was further aggravated by the households accessible to even voice
FCC’s adoption of new Universal Service
Funding (USF) mechanisms intended services Sacred Wind had to build an
to promote competition. For example,
mobile wireless telephony, exploding at entirely new infrastructure and one
first as a supplemental, not replacement,
service in the 1980s, spread slowly in designed for Internet capacity carried over
rural areas, but the impact of the FCC’s
inclusion of mobile service in its USF one of the largest fiber to fixed wireless
funding programs began to change the
math behind the rural carriers’ financial networks in the country.”
model. It wasn’t long before mobility, fol-
lowed soon after by the thing called the
Internet, upended traditional consumer
behavior and the entire telecommuni-
cations and information industries. In
some areas, including many tribal lands
in the U.S., though, change didn’t arrive.
In the face of the inadequacy of techno-
logically-driven opportunity in the more
remote rural areas of New Mexico, Sacred
Wind Communications was created, but
only after months of discussions and
negotiations with carriers responsible for
underserved areas in the state, followed
by a two-year state regulatory process,
and a, thankfully, shorter FCC proceeding
involving waiver petitions from FCC rules
that discouraged such new acquisitions
of underserved exchanges.
With less than thirty percent of Navajo
households accessible to even voice ser- school districts contacted Sacred Wind and to reach other parts of New Mexico
vices Sacred Wind had to build an entirely with requests for service for hundreds using a combination of USDA, state and
new infrastructure and one designed for of students’ homes in northwest New company resources. The innovative
Internet capacity carried over one of the Mexico lacking broadband service. Over company continues to be at the center of
largest fiber to fixed wireless networks in the next several months the schools broadband development discussions at
the country. Sacred Wind’s network was and Sacred Wind formed a collaboration the state legislature and among execu-
designed to be expandable and scalable, unlike any experienced by a traditional tive offices as New Mexico has recently
configured for continued microwave telecom company, sharing and compar- established a broadband office and is
expansion to reach additional unserved ing network maps with student locations, working to develop a three-year plan to
areas and supported by high capacity planning WiFi hotspots and temporary cover the entire state.
fiber routes to ensure compliance with tower installations, and drafting distance At 25 years, the Telecommunications Act
ever increasing customer demand and learning grant applications. is more than a bit geriatric. Technology
FCC requirements. It was that design continues to make it so. The advanced
that enabled the company to answer a It is that expandable design that has information services referenced in the
new demand for service in March, 2020. enabled Sacred Wind to successfully bid Act are known today by other names and
The superintendents of three separate for unserved areas in two FCC auctions are seen in different forms. 5G wireless,
Cont’d on page 45
Mr. Badal is a co-founder of Sacred Wind Prior to his employment with Qwest he was a regional director of governmen-
Communications and is the CEO and Chairman tal affairs for AT&T until his retirement in 1998, when he began a consulting
of the Board. He served as President for Qwest business, Border States Policy Group. His company helped develop telecom-
Communications in New Mexico from August munications policy for governmental jurisdictions in New Mexico and Arizona
2000 to October 2004. He left Qwest specifically and specialized in promoting and designing wireless broadband systems for
to resolve the “IT Divide” issues facing the Navajo rural areas.
reservation and other tribal areas. Sacred Wind
Communications has been in existence for over He received his undergraduate and Master’s degrees from Temple University,
thirteen years, and has received four awards: in 2007, the NM Internet Philadelphia and conducted doctoral research under a Fulbright Grant in
Professionals Association’s Industry Innovation Award; in 2009, it was voted in Peru from 1974-75. He speaks 3 languages fluently and is somewhat conver-
a national American Express/NBC Universal “Shine A Light” contest “The Most sant in Quechua and French, and is learning Navajo.
Inspiring Small Business in America;” in 2012, the New Mexico Excellence
Award; and in 2016, the Best Telecommunications Consulting Business in He served in the U.S. Army’s 8th Special Forces Group in Panama, trained in
Albuquerque. radio communications and combat engineering. He is married and has four
children and four grandchildren.
Skinny Wire |Summer 2021| http://www.walkerfirst.com/literature/skinny-wire/ 15You can also read
