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Thirty Years & Going Strong THE COMPETITIVE COMMUNICATIONS ASSOCIATION THIRTY YEARS & GOING STRONG 2011 ANNUAL REPORT1 FROM THE CEO’S DESK Our members – and the industry in general – also benefited from the busi- ness, networking and educational opportunities that COMPTEL presented. Our COMPTEL PLUS Convention & EXPOs brought together more than Throughout this annual report, you will see a timeline 4,300 industry leaders and decisionmakers, and exhibitors representing marking the milestones of COMPTEL and the industry 210 companies, in the Spring and Fall of 2011. In addition to the timely during the past three decades. COMPTEL was founded keynote addresses, panel discussions and workshops at our conventions, by upstarts in the long-distance market that were chal- we provided members with access to Webinars and white papers on the lenging the entrenched monopoly. We have grown and topics of importance to their business. evolved as competition expanded into other sectors – Over the years, COMPTEL has established a strong reputation for both our from local telephony and data to VoIP, video, broad- policy advocacy and business development opportunities, and we will con- band, managed services, cloud computing and data tinue this momentum going forward. We hope, in these pages, you enjoy centers – as a result of the innovation, entrepreneurial the look back at COMPTEL’s first 30 years, and get a glimpse of how we spirit and leadership of our member companies, who are setting the stage for continued growth and success of your business – rely on copper, fiber and wireless technologies to reach and the communications industry as a whole – for the years to come. their customers. During the year, we also achieved a number of critical 2011 was a year of policy advocacy wins before the Supreme Court, at the 1981 1982 celebrating the significant FCC and on Capitol Hill – all which will result in a bet- Jerry James achievements of COMPTEL. ter business and regulatory climate for our members by ensuring an open, vibrant communications marketplace CEO, COMPTEL We began the year by – whether it is in retail or wholesale, wireline or wireless, th marking the association’s 30 or business or residential. anniversary. Since 1981, COMPTEL has been the On March 21, the association On January 8, AT&T agrees to divest its local champion of competition in incorporated as Association of Long exchange service operating companies, settling an Distance Telephone Companies antitrust lawsuit, United States v. AT&T, initiated the communications industry. (ALTEL), a group of very small IBM introduces the by the U.S. Department of Justice in 1974. Judge resellers interested in promoting desktop personal Harold H. Greene, of the Federal District Court for competition with AT&T. computer. the District of Columbia, presided over the case. 2 3 30 YEARS A few weeks later, COMPTEL was joined by more than 100 mem- COMPTEL marked its 30th anniversary in style. More bers, supporters, policy- than 50 former and current COMPTEL chairmen, makers and lawmakers board members and staff joined COMPTEL at the to continue the celebra- COMPTEL PLUS Spring 2011 Convention & EXPO tion at Union Station in in Las Vegas, where an anniversary party kicked off Washington, D.C. the opening night festivities. During the convention, we also debuted a video retrospective of the as- sociation’s history, featuring a number of individuals whose leadership was instrumental in building and RIGHT: O’Reilly, McAndrews growing the association over the years. and former COMPTEL For any organiza- President Jim Smith tion to remain in business for 30 ABOVE: Former COMPTEL years is a great ac- Board Members complishment. But LEFT: Smith and former COMPTEL President and for an association in Former COMPTEL General CEO H. Russell Frisby Jr. a dynamic and ever- Counsel Carol Ann changing industry to Bischoff, Rep. Ed Markey reach this milestone and COMPTEL founding is a testament to President Jerry McAndrews the enduring spirit of its members and the continuing need for a unified voice to advocate for the COMPTEL CEO Jerry James joins former association chairmen (from left to right) William P. ABOVE: Former COMPTEL Staff O’Reilly, Richard Burk and Roy A. Wilkens 4 industry it serves. 5 MEMBERSHIP COMPTEL welcomed the following new members in 2011: • 911 Enable • Genuent • NEF Inc. • Telecom Service Bureau Inc. Throughout 2011, we have expanded our outreach • Birch Horton Bittner and Cherot PC • Global Capacity • Raisecom USA in order to attract new members in a number of sub- • Cable & Wireless Worldwide • Global Convergence Solutions • Ready Wireless LLC • TeleQuality Communications Inc. sectors of the communications industry, including • CGM LLC • Impact Telecom • Reunion Communications Inc. cloud services providers, cable companies, cyber- • The Commpliance • Contingent Network Services LLC • InterMetro Communications • RTC Associates LLC security firms, developers of managed service plat- Group, Inc. forms, wireless backhaul and 4G companies, and • Donovan & Watkins Legal Solutions • Kiesling Associates LLP • Sansay Inc. • Transmode, Systems AB the vendors that serve these markets. Additionally, • dPi Teleconnect • Life Wireless • Snom Technology Inc. • Wide Voice LLC we offered new educational opportunities exclusively Holdings LLC • DukeNet Communications • Syniverse • Worldwide Supply to our members, including an Executive Webinar Se- • Eckert Seamans Cherin & • LightSquared Technologies ries, complete with white papers, on topics such as IP • Zeus Telecommunications LLC Mellott LLC • LS Networks • Team Fishel interconnection for managed VoIP, IP multimedia sub- system for over-the-top services, and facilities-based • Emerios • MTI - Midwestern Since COMPTEL’s in- first-mile strategies. • FAS TEK Compliance Solutions Inc. Telecommunications Inc. ception, our primary TexAlTel, the association’s first TCP/IP is selected as the official Our efforts are paying off, as we added 37 new mission has been to 1983 state affiliate, is created. protocol for the ARPANET. support our members members in 2011 and increased overall membership by approximately 8 percent. – whether it is by ad- vocating for laws and But we are never satisfied with the status quo. New programs are being implemented that will set the ALTEL hosts first First Commercial Cellular Service, policies designed to educational conference provided by Chicago-based foster competition in foundation for future growth and provide even greater value for our members. in Woodcliff Lakes, Ameritech, is launched using the the communications January 30 to February 1, N.J., in September. Motorola DynaTAC mobile phone. industry, providing ALTEL hosts first annual timely information, or meeting in New Orleans. William P. O’Reilly elected ALTEL gains prominence after working with Reps. Dingell, enabling them to net- first Chairman of the Board; Markey and Bryant to pass H.R. 4102, which rolled back work and seal valu- Jerry McAndrews becomes access charge regime FCC was proposing to benefit AT&T. 6 able business deals. first President. 7 MEMBER DEMOGRAPHICS Member Size by Revenue Member Size by Employees >$500 Million 5000+ 1000-5000 $100-$500 Million Up to $10 Million Type of Business 500-1000 0-100 250-500 International Carrier Associate $25-$100 Million In November, ALTEL 100-250 1987 Professional Service Provider merges with the American Council of Competitive Telecommunications $10-$25 Million (ACCT) and expands its Supplier membership to include facilities-based carriers Federal Judge Harold 1988 1985 1984 and other providers. Greene upholds core restriction on RBOC long-distance entry, allowing competitive Chicago Fiber Optics (later long distance industry known as Metropolitan Fiber to continue to grow. The first transatlantic fiber Systems, or MFS) installs fiber optic cable is completed. On January 1, unified Bell System officially splits into ALTEL changes its name to the optic cable in Chicago’s system AT&T and seven independent Regional Bell Operating Competitive Telecommunications of unused coal tunnels. Companies (RBOCs). This event unleashes a flood of Association (CompTel). technological advances for consumers and businesses, On Mother’s Day, Illinois Bell in Hinsdale County, outside of including the ability to choose and buy their own Chicago experiences a severe fire, leaving 35,000 people without telephone equipment. Teleport Communications Group, the first competitive phone service for extended periods. The event underscored the access provider (CAP), is established in New York City. risks on a one-carrier system and its inherent bottlenecks. 8 9 CONVENTION ing, the future of IP networks, intercarrier compensation, management In the Fall, we had more than 2,000 attendees gather at the Gaylord strategies, meeting network demands, M&A, OSS, smart grid, universal Palms Hotel and Convention Center in Orlando. The COMPTEL PLUS Fall service reform, video and voice technologies, wireline and wireless, and Convention & EXPO featured almost 100 companies in the EXPO hall, Our conventions in 2011 attracted more than 4,300 attendees, an insider’s view of Congress including 10 first-time exhibitors. During the opening session, COMPTEL 210 exhibitors and dozens of influential media and industry ana- The COMPTEL PLUS Spring 2011 Convention & EXPO, which took place also recognized its outgoing Chairman Joe Ambersley for his decade of lysts, and featured prominent speakers, such as: at the Venetian in Las Vegas, featured a sold out exhibit hall that included service to the
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