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President's Message
2009 – Collectively Creating Value for Missouri’s Telecom Providers
by Ric Telthorst, MTIA President
In a year marked by economic challenges that impacted the industry’s bottom line and company mergers that altered the telecom landscape, MTIA continued to serve as an effective forum to promote the mutual interests of the industry’s diverse membership. With a focus on consensus building, the association tackled core industry issues, worked to find common areas of agreement, and advocated for needed changes with both state and federal policy makers. As this year draws to a close, I’d like to highlight some of the milestones we achieved together.
Bringing Common Sense to the Broadband Debate
In the rush to approve and implement the federal broadband stimulus program, policy makers in both Jefferson City and Washington, D.C. often overlooked the interests of Missouri’s telecommunications carriers. MTIA met with key state policy leaders in both the Governor’s office and the state legislature to advocate for an equitable and effective use of federal broadband funds to serve rural Missouri. The association testified before House and Senate committees to educate lawmakers on the extent of Missouri’s existing broadband network, pointing out the need for careful planning to avoid over-building carrier facilities.
In cooperation with national industry groups, MTIA worked to carry our message to federal administrators. Guest editorials published in state newspapers and targeted messages to state lawmakers underscored our opposition to using state-controlled broadband networks to compete with private carriers. As of this writing, the federal broadband program is still a “work in progress” and the association continues to advocate for common sense, fairness and smart planning to achieve the best results for all Missourians.
Finding the Right Balance at the State Capitol
Sometimes the core challenges facing the telecommunications industry take more than one legislative session to resolve, and that was certainly the case in 2009. Following the conclusion of extensive legislative hearings in 2008, industry stakeholders came together early this year to develop a compromise proposal to address access reform. The plan relied on the use of a benchmark rate for large carriers, a $1 adjustment for small carriers, a surcharge on all voice providers and the establishment of a state fund to rebalance revenues.
Despite diligent efforts to meet the diverse interests of various industry stakeholders, the plan met with stiff opposition from legislative leaders. Competing legislative solutions were debated for the balance of the session, with no consensus being reached by the closing gavel. The robust debate did, however, clearly bring into focus key issues that need to be further addressed when lawmakers convene next month. Stay tuned for more action in 2010.
The association continued to work on other key issues impacting the industry, including a proposal to relieve ILECs of the carrier-of-last-resort obligation in certain cases. MTIA again worked to ensure fair treatment for the industry in meetings with public-sector stakeholders who were pushing a wireless tax to fund 911 operations. The association successfully opposed a late effort that would have weakened the state’s One Call law.
Staying the Course in the Regulatory Arena
Working with policy makers, whether in the Capitol or at the Commission, is a relationship business. Issues develop over time, and compromise and consensus build over the course of years. Maintaining a consistent presence with the Missouri Public Service Commission means that MTIA is “at the table” when important policy changes are under consideration. The association is often the bellwether for the industry, alerting member companies to emerging issues and potential policy changes on the horizon.
But on occasion, issues emerge and move with little warning. For example, this year the association quickly responded to an attempt by the Office of the Public Counsel to severely restrict the industry’s billing and customer service operations. Through direct testimony before the Commission and coalition building with other business allies, the association brought clarity into the discussion and continues to work to turn back unwarranted restrictions on our business operations.
Informing Our Members, Stakeholders and External Audiences
Communicating effectively with our members and key stakeholders is a prime responsibility of MTIA, one that the association takes very seriously. The weekly Manager’s Memo, distributed electronically to our telecommunications provider members by noon each Friday, is a consistent source of Missouri-specific industry news covering legislative and regulatory changes, new association services and updates. In 2010, this timely weekly update will be distributed to all MTIA member companies to better inform our diverse membership base.
This year the association produced a series of radio image ads that ran statewide on the MissouriNet news broadcast. The ads, "Your Community", focused on the benefits that advanced telecommunications brings to even the smallest of Missouri towns.
Educating, Networking & Building Positive Business Relationships
Through well-planned conferences, educational meetings and networking events, the association worked to build those key business relationships and deepen technical knowledge so important to success in today’s marketplace. Our annual meeting in August, spring industry affairs conference, Show Me Expo and five-state MATSS trade show connected telecom leaders with key industry suppliers, consultants and contacts. These venues provided a valuable networking opportunity that advanced the business interests of members.
Building a Financial Foundation for Continued Success
Your financial support through annual membership dues continues to be the lifeblood of the organization. For more than a dozen years we have been able to hold the line on dues increases. However, steadily increasing operations costs and declining dues income caused by industry mergers have compelled us to make adjustments for 2010.
The board of directors has developed and approved a revised dues schedule to adequately provide for the financial needs of the association while seeking to share the burden equitably. It is truly a balancing act to achieve the right mix, and the board will continue to discuss ways to find parity in how the association’s expenses are shared.
As I approach my tenth anniversary as president of MTIA, I want to sincerely thank you for your continuing membership in the association. Your support is critical to our mutual success.
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