Members Approve CompTel, ASCENT Merger

The members of the Competitive Telecommunications Association (CompTel) and the Association for Communications Enterprises (ASCENT) today voted to approve the merger of the two organizations to form the CompTel/ASCENT Alliance. The merger will become official on Oct. 1, 2003.

“The merger of CompTel and ASCENT will allow the industry, through a single organization, to hone its focus on issues impacting competitive telecommunications service providers of all sizes – from the largest multinational carriers to small local telephone companies,” said Richard Burk, co-chairman of the CompTel/ASCENT Alliance and president and CEO of nii Communications Ltd. “The benefits will be measurable as the Alliance puts its combined force into advocating procompetitive policies that will result in economic development and a range of new offerings for consumers around the world.”

"The merger of ASCENT and CompTel is a huge win for the members of both associations and the entire competitive industry," added J. Sherman Henderson, CompTel/ASCENT Alliance board member and president and CEO of Lightyear. "The new Alliance has the size and clout to really make a difference, not just in policy areas but on the business side too. Get ready for bigger trade shows, better networking opportunities, and more education programs...and that's just to start! What's really exciting though is this new organization's potential. With so much talent and experience under one roof, you can just imagine the incredible promise the CompTel/ASCENT Alliance holds for helping members succeed in their businesses."

The combined organization has about 500 members; less than 70 were crossover. H. Russell Frisby Jr., president of CompTel, will serve as CEO of the new organization and Walter G. Blackwell, president of ASCENT, will be president and COO.

The CompTel/ASCENT Alliance will be governed by a combined board of directors run by co-chairs Burk, and Ron Harden, executive vice president of Grande Communications, who served as the most recent chairmen of CompTel and ASCENT, respectively. In February 2004, a 21-member board will be elected, with representatives from small, medium and large companies serving three-year terms.

The alliance expects to consolidate facilities and staff at the CompTel location as the ASCENT lease is coming up for renewal. “The staffs are already working together and are working together well,” says Frisby. “We complement each other very well from competencies, skill sets, personalities – you name -- it across the board.”

In 2004, the new board will determine the association’s permanent name and make recommendations in late summer/early fall for a final dues structure – one of the primary differences between the two groups.

CompTel members pay dues based on their annual revenue while ASCENT members pay a uniform flat fee. Frisby notes that while much ado has been made of this difference, some 60 percent of CompTel’s members are smaller carriers paying dues in line with the few thousand dollars paid by ASCENT members. Under the merger agreement, members would pay dues required by their respective organizations through 2004. Former members of CompTel and companies with memberships in both groups will pay according to the CompTel dues schedule while members of ASCENT will pay $3,000, the board-approved rate for 2004.

Blackwell says this approach affords members of both groups a year to see the value of the combination before re-upping under the yet-to-be-determined structure in 2005. “A great deal of time was spent on this subject and we believe we have come to a nice consensus on really allowing our members to see the value the two groups can bring together,” he says.

Blackwell adds, “I think you have a group now that can be absolutely focused on advancing competition. With the rivalry past, the strong points of both organizations come together.” This message is loud and clear in the alliance’s new tagline: One Voice-One Purpose-Advancing Competition.

On that front, the group likely will file a petition for reconsideration and join in appeals in connection with the Federal Communications Commission’s order in the Triennial Review of ILEC unbundling requirements.

In addition, Frisby says the new group will preserve most of both organizations’ programs. For example, ASCENT’s for-profit Business Solutions venture ASCENT Wireless, the wireless resale program launched this summer, will continue. ASCENT’s Regional Advisory Council, which was set up to more narrowly target the needs of members in smaller geographic areas, also will be maintained.

Blackwell notes that both boards have been careful to ensure that programs that support all facets of our industry be maintained and to look for new opportunities as they might develop.

“Walt says it best when he talks about one voice, a unified voice for the industry in terms of advocacy and also a unified voice and a unified forum in terms of our show and educational efforts,” says Frisby.

The CompTel/ASCENT Alliance’s debut event will be the Fall Conference & Networking Center in Dallas, Nov. 17-20. Additionally, CompTel is going forward as planned with its Fall 2003 Conference & Trade Expo in Orlando, Oct. 7-10. Beginning in 2004, the CompTel/ASCENT Alliance will host two conferences/trade expositions each year. The first will be in Anaheim, Calif., Feb. 8-11, 2004, followed by Miami, Sept. 11-15, 2004. The 2005 trade expositions will be held in Las Vegas and Orlando. The alliance will host several regional events, as well as seminars, workshops, third-party educational sessions, training, and certification courses to increase networking and professional development opportunities for members.

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