Telecommunications: A Multi-Billion Dollar Industry and Growing
by Monica M. Huddleston
What
industry boasts of sales in excess of $400 billion annually, yet African
Americans total less than one percent ownership in it? Do you know anyone who
does not have either a telephone in the home, a cellular/mobile phone, pager,
cable television service, a satellite dish, a radio, or a computer? The answers
to these questions make it clear why you should read this article and take
action, starting now, if you see in it a niche for your talents.
Telecommunications is simply everywhere. We use some facet of
it every day. When you pick up the phone to call home for more money, that's
telecommunications. When you are watching your favorite music video on cable TV,
you're rocking via telecommunications. When you research that term paper this
fall on the Internet, the most explosive communication vehicle in the industry,
you are experiencing the electronic superhighway that connects computers around
the world.
Telecommunications includes any medium used to transmit or
receive voice, data, or video signals and information. Telephones, computers,
mobile phones, pagers, televisions, and radios are the most recognizable
instruments used to receive these signals that more complicated technology
creates, interprets, and delivers. Behind the instruments most visible to the
public are telecommunications companies switching centers to which most homes in
America connect via phone lines. Local Exchange Carriers (LEC) equipment
provides dial tone and dialed digit interpretation, as well as call processing
features and the paths over which voice, data, and even video travel.
Beyond certain Federal Communications Commission (FCC)-drawn
boundaries, Interexchange Carriers (IXC) pick up the calls and provide the
switching functionality and talking paths to connect the local caller to the
desired party miles away. It should be noted that the lines between the local
and long distance carriers are quickly blurring as the Telecommunications Act of
1996 implementation moves toward the day when full competition in the industry
allows each to get into the other's business. The desired result is lower
consumer prices and more communications choices.
The Internet, which is a worldwide network of communication
paths linking computers from the home to the business world to the schools, was
expected to generate sales from $12 to $18 billion during 1999. Not only is
information plentiful and easily accessed on the Internet, but electronic
commerce is expected to dominate the 21st century. Internet Service
Providers (ISP) own and maintain the massive servers that house all of this
information.
Wireless communications companies are also telecommunications
service providers. According to the FCC, over 60 million people use the various
types of mobile phones daily. Transmission towers and cell sites enable signals
traveling over airwaves, called spectrum, to be received, interpreted, and
transmitted. Personal Communications Service (PCS) is the latest spectrum-based
technology, utilizing digital transmission.
Let's not forget the broadcast media - TV and radio. This
form of telecommunications utilizes broadcast towers and satellites, which
transmit programming from station studios and production centers over the
airwaves and into our homes.
Who are the major players in this field that grows
exponentially? After MCI challenged the AT&T monopoly in court in 1984, the
U.S. Justice Department mandated a settlement that made local telephone service
the province of the Regional Bell Operating Companies (RBOCs), including Bell
Atlantic, Southwestern Bell, Ameritech, Pacific Telesis, Bell South, US West,
and Southern New England Telephone. GTE and other non-RBOC LECs are called
Independent Local Exchange Companies (ILEC). Long distance service was relegated
to AT&T, but that market was opened to competitors like MCI. Today, the long
distance market has hundreds of carriers, including Sprint, Williams, and more.
Likewise, Competitive Local Exchange Carriers (CLEC) like COVAD, Teligent, Qwest
Communications, and others have challenged the RBOCs stronghold.
Most important to understand is that many of the above named
companies are involved in mergers that have or will probably be consummated
soon. They are preparing for full competition by incorporating into their
corporate profile other entities whose expertise and footprint in the
marketplace enable them to reach a customer base quicker and more effectively
than they could if they attempted to create such an entity from scratch. SBC
absorbed Pacific Telesis and is awaiting FCC approval to merge yet again with
Ameritech. Bell Atlantic is close to completing its deal to merge with GTE. One
of the largest recent mergers was spearheaded by MCI when it merged with
WorldComm, Metropolitan Fiber Systems (MFS), and Brooks Telecom. The
conglomerate is now called MCI WorldComm. What each seeks is to become the
one-stop provider of choice for business and residential customers, serving all
their telecommunications needs.
As telecommunications service providers race to be the first
and the best, they rely on the industry manufacturers to deliver
state-of-the-art call processing equipment. The major manufacturers include
Lucent, Nortel, Siemens, Ericsson, and Fujitsu to name a few of the switching
manufacturers. Transport manufacturers, who make the equipment that connects
local, long distance, and other telecommunications service providers' equipment
together, include Fujitsu, NEC, Lucent, Alcatel, and others. Still more
manufacturers of wireless phones and other equipment include PairGain, Motorola,
and Nokia. There are even more satellite and cable television equipment
manufacturers and service providers, including Iriduim LLC and Globalstar.
Computer technology will always be the anchor for the
telecommunications industry. Hardware and software manufacturers like Cisco and
Microsoft continue to dominate the computer industry. Innovations from these and
other such providers drive the products and services offered by the service
carriers referenced above. A table shown in this article illustrates the variety
of telecommunications companies, their sizes, and growth.
Even though African Americans comprise less than one percent
of the telecommunications industry's business owners, there are some who have
broken the code to succeed, in spite of the traditional barriers that plague so
many of our entrepreneurs. Mike Roberts, president and CEO of Roberts Wireless,
Inc., saw and seized the opportunities of this lucrative industry. After
successfully bidding for spectrum to become a PCS provider, Roberts quickly
learned there was a cheaper and less risky route to entry into the wireless
world. Roberts Wireless, Inc. has an affiliate agreement with Sprint PCS and
provides the service in most areas of Missouri, excluding the Kansas City and
St. Louis areas. "We are using an African-American owned firm to do our
cell site engineering," says Roberts, taking pride in the ability of his
and his brother, Steven's, company to circulate huge dollars among other African
Americans. Mike and Steven Roberts received the 1999 Granville T. Woods Award
for Outstanding CEO from the National Association of Black Telecommunications
Professionals, Inc. (NABTP) during its April convention in Washington, D.C.
Another success story is former U.S. West Network Operations
Vice President Bob Knowling. He left this high-ranking position to lead a CLEC
in its fight to compete with incumbent LECs. Knowling is now president and CEO
of COVAD, which is collocating its equipment in incumbent LEC switch rooms all
across America. "I like the challenge," he said, as he fired up the
audience at a recent NABTP convention. He advised those in attendance to learn
all they can from the company positions they now hold, taking advantage of
relationships with mentors to position oneself to accept bigger challenges down
the road.
What are the trends in the industry? How can you get into
this fast-growing industry that has generated over 200,000 jobs since 1993 and
has exported in excess of $25 billion (Commerce Department statistics)?
High-speed data will dominate communications in a few years. The ability to
transmit voice over the same switching equipment and transport or talking paths
used for high-speed data is considered a key innovation in telecommunications.
The service providers and equipment manufacturers need talented professionals
who are not only technically savvy, but whose interpersonal skills are also
exceptional. Employees must be able to communicate effectively with customers to
discern what it is they need, and then translate those needs into a
revenue-producing product or service. Salaries for entry-level positions in
telecommunications vary widely, depending on educational achievement and
industry experience. However, it is safe to say that a college graduate,
majoring in computer science, engineering, telecommunications management, or
other technical field can command from the upper $40s to as much as $70,000 per
year, plus signing bonus and benefits. Once you have worked in the industry for
a few years, the opportunity for you to strike out on your own as a consultant
or business owner is certainly within your reach.
To educate yourself about this industry, the technology, and
its potential employers, consult trade publications like Telephony (www.internettelephony.com),
and Utility Business (www.utilitybusiness.com). Read the companies' annual
reports to learn their mission and the products and services they offer, which
will allow you to match your skills and developmental desires to the company's
plans. While in college, take courses in computer science and engineering, which
will prepare you well for the telecommunications industry. Seek the institutions
with these curricula. Above all, network with telecommunications professionals
and entrepreneurs, who can share a wealth of experience and insight into the
industry culture, technological trends, and opportunities. The National
Association of Black Telecommunications Professionals, Inc. (NABTP) is a good
starting point. The NABTP Web site address is www.nabtp.org, or you can call
NABTP at 1-800-946-6228. Other helpful Web sites are www.fcc.gov, the Federal
Communications Commission Web site, and www.ntia.doc.gov, the National
Telecommunications Information and Administration agency site.
Monica M. Huddleston is president of the National Association of Black
Telecommunications Professionals, Inc. (NABTP) and director-Central Office
Operations-St. Louis, Southwestern Bell.
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