MCCORMICK WANTS USTA TO BE ‘FORUM’ FOR DEVELOPING CONSENSUS

Walter McCormick, slated to become pres. of USTA July 1, envisions group as “forum” where disparate carriers -- ILECs, CLECs, long distance companies, wireless providers and others -- discuss issues and come to agreements that can be presented to FCC and Congress. In interview with Communications Daily, McCormick, now pres. of American Trucking Assns. (ATA), said he knew it would be challenging to bring industry segments together that way. Telecom industry is going through what trucking did several years ago, he said. In both cases, regulation created divided industries and, as regulation eased, challenge was to bring those carriers together where they had common goals, McCormick said. ATA successfully accomplished that goal and he said he thought USTA could too.

McCormick was involved in telecom policy arena for more than 15 years, arriving in Washington in 1978 in search of summer internship to advance his goal of becoming telecom lawyer. He “knocked on doors” until he obtained internship with Senate Communications Subcommittee, which put him to work on early attempts to rewrite Communications Act. After completing law school, he returned to Washington in 1980 and worked for small law firm until joining staff of then Sen. John Danforth (R-Mo.) in 1982. McCormick oversaw drafting of numerous telecom bills, eventually becoming chief Republican counsel of Commerce Committee and, during period when Republicans were in control, Committee gen. counsel.

Like others in the 1980s, he was on ground floor in efforts to legislate way to deal with competitive pressures on AT&T monopoly, problem that eventually was settled in federal court with 1984 divestiture. He recalls working on S-898, which sought to enable AT&T to enter computer business if it formed fully separated subsidiary. McCormick said AT&T, still monopoly in those days, was itching to get into computer business dominated by IBM. Bill wasn’t passed but was among several that set framework for 1996 Telecom Act. He left Hill in 1992 to become gen. counsel of Transportation Dept. under first President Bush, but returned to private telecom practice year later when he joined law firm Bryan, Cave, McPheeters & McRoberts as partner. After representing telecom companies, including Bells, wireless carriers and others, McCormick moved to ATA 4 years ago.

There are similarities between transportation and telecom, McCormick said. Both involve common carrier regulation and most telecom law and precedent is based on transportation model of interstate commerce regulation, he said. Regulatory terms are strikingly similar, as seen from transportation terms such as “reciprocal switching, access to central facilities and unbundling,” McCormick said. Challenges facing ATA and USTA are similar as well, he said. Trucking industry was highly segmented based on regulatory structure that existed before 1980s, he said. There were clear lines between how various carriers were regulated, be they “truck load carriers, less-than-truck load carriers or auto haulers.” Although regulatory lines had disappeared when McCormick arrived at ATA, association still was divided along traditional lines.

He helped ATA become more unified, role he sees himself assuming at USTA. Telecom industry also is “moving beyond the regulatory era,” McCormick said. “The way an ILEC approaches business is no different than the way a start-up approaches business,” he said. Telecom companies in general are responding to marketplace by becoming total providers, offering everything from local service to wireless to Internet access, he said. USTA members already reflect change in traditional model of USTA as isolated ILEC organization, he said. USTA should be “umbrella organization” that provides “forum where diverse parts of industry come together to debate policy,” seek common views and transmit those views to FCC and Congress, he said.

As USTA pres. he also will become chief lobbyist, role McCormick appeared to relish, saying he hoped “to draw on the relationships of the last 2 decades” and the knowledge gleaned from watching telecom issues evolve in 1980s and 1990s. Asked about his views on specific issues such as pending Tauzin-Dingell bill, McCormick demurred, saying he was hesitant to interfere while interim USTA Pres. Gary Lytle remained in charge. In general, he said, “my goal is to speed deployment of broadband technology and the provision of telecommunications into the home of every American, urban or rural.”

Lytle hasn’t announced what he plans to do after leaving USTA but said he probably would return to consulting. Lytle, who was head of Ameritech’s Washington office before company’s merger with SBC, had operated his own consulting firm before USTA tapped him 10 months ago to fill in for ex-Pres. Roy Neel. Neel had left to work on then-Vice President Gore’s Presidential campaign. Lytle, who was in running against McCormick for permanent post, said he was relieved that USTA board had made choice and he could move on. For now, he’s working “to make a graceful exit and get everything ready for Walter.”

Assn. already has made some moves toward diversification sought by McCormick. Under Lytle, USTA worked to recruit several CLECs and become what Lytle called “more inclusive association.” USTA’s internal structure was tightened to turn Assn. into leaner, more cost-efficient body that offered “more value to members,” Lytle said in answer to question.

After he was named, McCormick issued statement to trucking community explaining he was leaving ATA because USTA position offered new challenges and “potential for significant personal and professional growth.” He said he was leaving ATA as strong organization, having undergone “the most comprehensive overhaul in the association’s 67-year history.” Affiliated membership organizations were merged, dues were cut and ATA focused on “lobbying, litigation and public relations,” he said. As result, revenue from dues increased, membership increased and there were “significant” lobbying victories. “We have a lean, efficient organization with a strong staff, a balanced budget and a clear focus.” Now, USTA offered “extraordinary opportunity” for new challenges, he told ATA members.