Great Catch

Who could talk about “good reception” more credibly than the record-setting former receiver for the NFL's Seattle Seahawks, Steve Largent?

Though he stepped into big cleats in November by replacing the well-liked Tom Wheeler as the CEO of the Cellular Telecommunications & Internet Association, 49-year-old Largent has since made the organization his own, stocking it with new staff, putting pen to its core values and turning its operating structure outside-in. He had to, say the industry's armchair quarterbacks, because the challenges Largent faces in the near future will be his own, not his predecessor's.

The biggest asset Largent brings to CTIA is his close ties with some of the very people CTIA hopes to influence. Wheeler grew to prominence as a prolific entrepreneur in the telecom industry, never holding public office; Largent, on the other hand, is a Washington insider.

As a Republican Congressman for Oklahoma from 1994 to 2001, Largent held a seat on the Telecom Subcommittee of the House Energy and Commerce Committee, a vital group that gave birth to, among other things, the Telecom Act of 1996. At least 60% of the current members of the Telecom Subcommittee are the same folks who served alongside Largent during his tenure there, he estimated, including its most senior members, Chairman Fred Upton, R-Mich., and Rep. Ed Markey, D-Mass.

The telecom industry contributed greatly to Largent's campaign funds as a congressman, but it wasn't his biggest source of support. For example, telecom carriers such as SBC, Teligent and Alltel, together with like-minded lobbying firms, donated a combined $40,000 to Largent in the 2000 election cycle, according to political watchdog group OpenSecrets. In the same year, oil and gas companies gave Largent nearly $75,000.

Even then, Largent seemed to share some common notions with the industry. While endorsing the Wireless Communications and Public Safety Act of 1998 (which paved the way for wireless 911), he unsuccessfully opposed an amendment to give the Food and Drug Administration $10 million to research possible links between radio frequency emissions and cancer.

Two months after he took the helm at CTIA, Largent brought in a team to help him lead, replacing five executives with new hires. For congressional lobbying, he hired Alltel's beltway man Bobby Franklin and Bob Bolster, Largent's right-hand man for seven years in Congress. For his new VP of communications (a public relations post), Largent brought in John Walls, the nightly news anchor from his hometown of Tulsa, to — as one press release put it — “further polish our image in the eyes of the media and the public.” And he hired veteran D.C. telecom lawyer Carolyn Brandon to helm the policy group, a new office that Largent created as part of a broader effort to centralize CTIA's operations.

Under the previous leadership, CTIA was organized into four silos, each run by its own senior vice president, which led to conflict and redundancy, according to Largent. “There was a very competitive situation that developed within the organization that I didn't feel was healthy or constructive,” he said. “I tried to flatten out the organization and create a dynamic where the communication was better, so the left hand always knew what the right hand was doing — to create more of a transparent and team feeling.” He emphasized the word “team.”

In Largent's CTIA, one group — the policy group — is responsible for cultivating data and ideas, and acting as a resource for all other parts of the organization and the industry at large. “You don't have one person thinking up good public policy for Congress and a different person thinking up good policy for the FCC,” said Brian Kidney, Largent's new chief operating officer. “It's all going to be in one place.”

The COO position is a new one, charged with managing CTIA's daily operations and freeing up Largent to be the organization's public face. “You can call it a COO, but to me it's a kindred, a chief of staff,” Largent said.

For that role, Largent insisted on someone with a private-sector background and wireless companies on his resume — someone familiar with the daily rigors of the industry. Kidney, a former CTIA board member, also handled regulatory matters as vice president of external affairs for AirTouch Communications. “I didn't just want a policy wonk in here,” Largent said. “I wanted him to have real-world wireless experience.”

This move was also important to fill in a gap in Largent's own resume. Unlike Wheeler, Largent never worked at a wireless company. His only exposure to the wireless industry (other than as a consumer) came in the mid-1980s, around the time CTIA was formed. Well-known as an NFL Hall of Famer, Largent was making the rounds as a motivational speaker when a friend who worked for the influential McCaw family asked him to make a few appearances in the back offices of Cellular One to stoke company morale. “It was very rudimentary,” he said.

But as a Republican, Largent's leanings toward lassez-faire regulation fit well with the industry's agenda, now more pressing than ever as consumer frustration threatens to force a stronger regulatory hand. This spring the California Public Utilities Commission may vote on a proposed bill of rights for wireless consumers that would impose strict regulations on carriers, a fight that has already consumed at least $200,000 in CTIA funds. Illinois is considering similar measures, and the FCC is considering imposing new outage reporting requirements on the industry.

“There's an ongoing pattern of government entities at the state and federal levels who think they know and serve our customers better than we can,” Largent said.

From a federal legislative perspective, this may be a light year for CTIA, since telecom law of any significance is unlikely to pass in an election year. Incumbent politicians are more likely to play it safe in the months before Election Day, and Congress generally adjourns earlier to campaign and prepare conventions.

But Largent hopes two pieces of legislation will be passed this year: One would permanently save consumers from being taxed for accessing the Internet (through any means, whether DSL or cell phone), and the other would reallocate wireless spectrum, giving the industry more of the airwaves currently used by the military. While the current federal administration does seem amenable to permanent tax cuts in general, analysts say the military won't be giving up spectrum anytime soon.

“In today's national defense environment, you're going to have to make a good case,” said Ken Hyers, Instat senior analyst.

In the meantime, CTIA will have to work hard to convince encroaching regulators that the industry can police itself, as it did by suggesting to the FCC recently that wireless carriers report their own outages voluntarily. The sentiment is consistent with the voluntary “consumer code” CTIA provided for its members last fall, but susceptible to the same pitfall: Regulators are paid to prevent foxes from guarding hen houses.

“Regulators know something like that doesn't have a lot of teeth,” Adam Guy, Yankee Group analyst, said of the CTIA's code.

Largent also wants to launch a national image campaign for the wireless industry, though he isn't far enough along in the process to talk about it. He hopes to get a good start on the initiative when CTIA's board meets following the group's trade show in March. Largent also hopes an ad campaign will have a reach that CTIA's 95-person staff can't match, helping guide public opinion in state regulatory fights where CTIA's involvement is limited. For starters, ads could aid the industry's e911 efforts, Hyers said. Consumers may not know that some states are holding up wireless 911 by raiding funds meant to provide those services. Publicizing the fact could add pressure to states and clear the industry's name.

Image-building will be more important for Largent's watch than it was for Wheeler's because the astounding consumer penetration of wireless services has insinuated the industry into every aspect of our culture — for better or for worse. And the public is still learning how to live with ubiquitous cell phones.

“Wireless is one of those industries that consumers love to hate,” said Guy. “There's a stigma around wireless — health concerns, safety while driving, manners. There's a lot of PR work to be done, and CTIA can have a meaningful role in that regard.”

But overcoming consumers' cynicism toward the industry is a feat that neither CTIA's code nor its new mission statement — thoughtfully articulated by Largent — is likely to accomplish.

“We are committed to excellence in all we do,” reads the new mission statement, somewhat resembling a Boy Scout pledge. “We are responsive, considerate, friendly and respectful.”

Probably unlikely to change anyone's mind, but Largent defended the document. “I've broken CTIA down,” he said, “and gone back to the basics.”