EX-CTIA CHIEF JOINS VC FIRM

Nine months after leaving the Cellular Telecommunications & Internet Association, former president and CEO Tom Wheeler has found his next project. This time, however, he's eschewing the role of policy maker for that of company builder, taking a position as special advisor and partner in mid-Atlantic venture capital firm Core Capital.

Core Capital is developing its second private equity fund, building off the success of a $170 million equity round that helped finance the likes of InPhonic, NexTone, Sentito and VocalData, among others. That fund closed in 1999 — not a particularly good year for telecom. Although Core Capital does not release its financial data, its partners said the fund is in the black — a sizable feat, considering it made its investments at the brink of the telecom bust.

“It's a particularly exciting fund to work for,” Wheeler said. “Most funds from that time are underwater. Core is not. They have an ability to see into the stack and identify the right companies, and they have a synergy in their investments.”

Core is hoping Wheeler will be able to improve that synergy in its second fund, banking on the experience he's garnered from heading up both the CTIA and the National Cable Television Association. While Wheeler said he believes the VC firm wants his wireless expertise, he thinks his experience with regulatory and policy matters will be even more valuable. FCC policy over the last few years has shown it can make or break entire sectors of the industry.

“Look at the biggest issues facing VoIP,” Wheeler said. “They're regulatory matters: CALEA and E-911. I've gained a bit of experience covering both of those things at CTIA.”

Jonathan Silver, the founder and managing director of Core Capital, said Wheeler was selected not only for his expertise but also for the relationships he has built as head of two major industry associations. While Wheeler's selection doesn't necessarily signal Core will focus more on telecom, he said Wheeler's expertise certainly enhances their efforts in that industry.

“It's not a question of more or less,” Silver said. “We already do a lot of work in telecom. Tom will just help us take it to the next level.”