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A WINTER ISSUE - MARCH - 2006 - tviNews Events

TVInews - 102 Is AT&T's Edward E. Whitacre Jr. of 2006, the Theodore Vail of 1906? "Sort of, but this time, says Troy Cory, "Whitacre has the wireless telephone, the Internet, LookRadio, VoIP, Google, Yahoo, NBS100-wifi and the Timeline. on his side. Should Cingular wireless be featured in the NBS Movie?
FEATURE STORY
• 02. TIMELINE
03. About Whitacre
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2006/Imagespeople/AT%26T1907MontageCEOs665w.jpgPhotos: Theodore Vail is picture in 1906 at his desk. Insert photos, Edward E. Whitacre Jr. Background photos: of Edward Whitacre, and the N. B. Stubblefield patent, 1907 with 1902 drawings of the wireless telephone. The government broke up Theodor Vail's dream of "one Universal Phone Service" in 1984.--

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120 PIXELS 3 columns

1. Feature Story / March 7, 2006 /
. . . is AT&T's Edward E. Whitacre Jr. of 2006, the Theodore Vail of 1906?
"Sort of," says Troy Cory-Stubblefield, the head of the 100 year old NBS100 family trust entity that represents the wireless telephone invention. "Nathan B. Stubblefield patented and trademarked his FiWi and WiFi system, way back when in 1892 and 1907, respectfully," -- says Troy.
When AT&T's, Theodore Vail first heard about N.B. Stubblefield's wireless telephone in 1902, Vail was just commencing his universal plan to replace "dit dah" telegraph lines, with AT&T "voice" telephone service, linked into every home and office in America. Included in a small monthly telephone bill, was the installation of a free telephone number with a two-way mechanical telephone wired to Vail's copper land-lines. The user could talk to Mama anytime, he/she wished.
Although there was no Internet, LookRadio, VoIP, Google, Yahoo, WiFi, Firewire, or FCC that Theodore Vail had to deal with in 1902, there was the NBS wireless telephone and Marconi's wireless telegraph dit dah system, just around the corner. By 1910, when the executives and lobbyists for the tree-cutters and copper wire manufacturers groups were mounting protest that -- "the only thing that could cannibalize their existing telegraphy and telephony land-line Tele-pole monopoly, would be the NBS100 wireless telephone system, they were right on," said Troy. "By the stroke of a pen -- they helped changed the name to Radio!"
The actions of Congress in both 1984 and 1996, empowered the FCC to break-up AT&T's monopoly into several individual "Baby Bells." As it so happened, the Regional Bell Operating Company of SBC, selected Whitacre as its president and chief operating officer, in October 1988.
When Whitacre took over the Bell Operating Company, he had no idea that talks were still underway and that big changes may be on the horizon to handicap those "Baby Bells" that figured they could maintain their monolopy on the million of miles of copper wires still hanging onto old "Ma Bell's" unsightly Tele-poles.
It was soon after Congress passed the Telecommunications Act of 1996, which was designed to spur line-sharing activities between competing phone companies, that helped the Dot.com, DSL and VoIP connections era to explode into the home. Verizon, MCI, Sprint, Quest and Global Crossing were all assigned their own phone numbers to connect directly into the "Baby Bell" system. The cost of all of these doings were to be borne by the sale of the NBS wireless telephone frequencies by the FCC, and the special "at cost rates" provided by the "Baby Bells."
"While Whitacre critics are mounting protest that Whitacre is putting "old Ma Bell back together again," says Troy, "we here at NBS100, are looking forward to more frequency sales by the FCC, and for more "Baby Bell" buyouts, especially if AT&T joins in on our 'Wireless Cemetery' RFID Internet project for America." CLICK FOR MORE STORY.
The American Telephone & Telegraph company monopoly Theodore Vail started to create over 100 years ago, was to control copper land-lines in America. "But, that's not the case for Whitacre's new AT&T," says Troy, "and we hope his focus will be on AT&Teleph-on-del-green wireless. -- CLICK FOR MORE Teleph-on-del-green STORY 1907.
"Maybe their ears are clogged, I don't know."
But since Whitacre's latest takeover of AT&T by SBC, the FCC has been largely quiet on the "monopoly" issue. "Maybe," says Troy, "it's because the agency is so overly hyped up about our recent NBS100 $38-billion dollar claim, and the "Payola" scam, that it took their mind off both the SBC and Sprint, "billion dollar buy-outs."
The payola investigation stems from a pay for play payout to an Entercom station in Niagara Falls, N.Y.; and the NBS100 $38-billion dollar. The NBS100 claim demands payment for RF spectrums sold by the agency, which were never paid for. The claims were given to the agency last year for investigation. The FCC has not announced any results of its findings since the filings.
FCC insiders said that New York DA prosecuter, Eliot Spitzer's investigators are frustrated by the agency's inaction, and had stopped sharing documents with them.
Spitzer told ABC News last month, "I would like to see the FCC more directly involved in addressing what is very clearly a "payola scandal" -- that has run rife through the industry. As for the NBS100 $30-billion claim, we have been trying to reach out to them in our allegations, "but have failed to do so," said attorney Charles Portz, of Houston. CLICK FOR MORE $30-billion STORY.
Spitzer reiterated that critique on Wednesday, March 8th, telling a reporter with the Associated Press, "The FCC must come to life on this "Payola" issue. Maybe their ears are clogged, I don't know." CLICK FOR MORE "Payola" STORY.
As for AT&T, and its baby Bells comeback to the fold strategy has worked. Each Bell unit has been able to maintain its nationwide reach in the old AT&T - Bell tradition. The government was able to assertain, what happened in the early 1900s happened again in 2006. All competition have fallen by the way side, without the help of government seizing the properties of Global Crossing, MCI, Quest, Verizon or Sprint.
Local and long-distance calling, wireless phones, and Internet services, including Streaming Video, VoIP, and Internet WiFi telephony. Just last week, AT&T won approval from Anaheim, California officials to install an Internet-video infrastructure. "Next, it will be Wireless Cemeteries, think about that," says Troy, "over 2 million cemetery transmitters beaming hot spots in the big city over the Internet, to help maintain our legacy values."
That could be a challenge for a man who said last fall that Internet portals such as Google and Internet telephone companies were going to have to pay for using the broadband piped into his customers' homes -- even though subscribers already pay AT&T for that access.
Whitacre has earned a reputation for being pugnacious, stubborn and willing to fight to the end, but those who deal with him see a person who will give something "free," if he can get something back in the future. The primary revenue from founders of Google and Amazon, come from KudoAds, Adsense. AT&T, as an Internet provider, will become and advertising giant.
Maybe AT&T will make Whitacre into an Internet hero, like Microsoft, Google and Mac did Gates, Brin, Page and Steve Jobs. "Of course, at the same time, they can help him devise a plan to help pay for the 1902 Wireless Telephone™ and WiFi land-land systems -- devised and predicted by Stubblefield and Vail, "to keep the two pioneers happy in Soulfind.com™," says Troy.
Vail's "One System Policy," was headlined in the Kingsbury Commitment -- in 1913, he fought Congress and the State regulatory agencies -- and Vail won.
"Whitacre's very self-confident, but not in a forward, ostentatious way," said Carl W. Wood, a former California Public Utilities Commission member. "You definitely get the feeling that you're meeting with someone who has a lot of power and influence."
Wood, who considered himself the consumers' commissioner, was at odds with Whitacre when Wood, among other things, sought to keep wholesale rates low for competitors seeking to lease lines from Whitacre's company.
Whitacre complained that those rates were below cost. Along with BellSouth and Verizon Communications Inc. executives, he fought in court and at the State level regulatory agencies -- and Whitacre won.

02 AT&T TIMELINE - TELEPHONE LAND-LINES and NBS WIRELESS TELEPHONY

1901 - In a corporate reorganization, American Telephone and Telegraph acquires the assets of its parent, American Bell Telephone, and becomes the parent of the Bell System. / AT&T's annual report for 1900, its first full year as the parent company of the Bell System

1902 01 - Stubblefield claims the leader of wireless telephone broadcast (Voice), after the second of four public wireless telephone demonstrations held in the U.S. The demonstration was held on January 1, 1902, -- 21 days after the Marconi "S" was transmitted

1902 03 - Stubblefield's - World's First Ship To Shore Radio Wireless Telephone Broadcast - Washington, D.C. Demonstration. On March 20, 1902, Stubblefield set up a demonstration on the Potomac River in Washington, utilizing his "groundless antenna" connected to the mast of the ship.

1902 - Stubblefield's Wireless Telephone Company Of America - Incorporation Papers - Filed In Prescott, Arizona, on May 22, 1902. Gehring, Stubblefield and Fennell, incorporated their new company in the State of Arizona, 75% of the Collins' Wireless Telephone Company was given to Stubblefield, for the patent rights in Canada.

1902 05 - Stubblefield's - Philadelphia Wireless Radio Telephone Demonstration - On May 30, 1902, just a little over two months after this Washington Demonstration, Stubblefield gave demonstrations of his wireless telephone in Philadelphia at the Belmont Mansion.

1902 0611 - Stubblefield's New York Demonstration - is held jointly with his Wireless Telephone Company Of America, in Battery Park, New York City. In this exhibit, again, one of the transmitters was connected directly to the local telephone company's switch board for mass party-line broadcasting.

1907 0405 - Stubblefield In Washington. Nathan B. Stubblefield's Wireless Telephone Patent Application Filed Apr. 5, 1907, Serial No. 366,544 -Room 109. The first permanent wireless telephone broadcasting installation was in January, 1892. The station was constructed in Murray, Kentucky, by Stubblefield's Teleph-on-del-green Industrial College, on the campus where Murray State University is now located,

1907 1017 - Stubblefield's Wireless Telephone Patent Application Approved by Commissioner Allen - Nathan B. Stubblefield - (Patent Expires October 17, 1924).

1907 - Theodore Vail begins his second term as President of AT&T (he had been president in 1885-1887) He develops the philosophy, strategy, and structure that guides AT&T and the Bell System for the next seventy years.

1907 - Vail begins national advertising, and introduces the slogan "One System, One Policy, Universal Service."

1908 0512 - PATENT: Stubblefield Received His All Purpose - Wireless Telephone Patent, Number 887,357 Click to Go To US Patent Office -- then Click Full Text to refresh page. - (Patent Expires May 12, 1925)

1909 - American Telephone and Telegraph (AT&T) began buying up the stock and patents of their bankrupt rivals. But AT&T's acquisitions troubled federal authorities, which began considering antitrust action.

1910 to 1916
1910 - Mann-Elkins Act - Congress first vested federal regulatory authority over telephone services in the Interstate Commerce Commission, under this Act of 1910. This followed the practice of local franchising initiated by states and municipalities to control rates and service quality for land-line phone companies.
Making AT&T a quasi like arm of the U.S. Government, to seize the assets of other telecom companies, by "natural" reasons, was one of the regulatory missteps, that was overlooked by state's rights backers.
The Act cemented AT&T's control of America's telephone land-line network and was the door opener for the emerging wireless radio broadcasting industry led by NBC. The monopoly's power to supervise war time patent pools, was a dream come true for AT&T.
After the war's end, AT&T, claimed the telecom assets and frequencies as theirs, and the regulators agreed ruling that such procedures were necessary to control the interconnections that were being tied into the future of America's telecom system's targets

1913 - AT&T settles its first federal anti-trust suit with a document known as the Kingsbury Commitment. It establishes AT&T as a government sanctioned monopoly. In return, AT&T agrees to divest the controlling interest it had acquired in the Western Union telegraph company, and to allow non-competing independent telephone companies to interconnect with the AT&T long distance network.
The Kingsbury Commitment, was a simple letter from the vice president of AT&T', Nathan Kingsbury, dated, December 9, 1913, in which AT&T agreed with the U.S. Attorney General, that it would divest itself of Western Union.
The company agreed it would also provide long-distance services to independent exchanges under certain conditions and to refrain from any and all acquisitions if the Interstate Commerce Commission objected. This prompted AT&T company officials to propose what subsequently became known as the "Kingsbury Commitment", as more fully described herein. See Contents
After the U.S. Attorney General announced the acceptance of AT&T's Kingsbury Commitment in 1913, and upon the advice and assurance that the telecom commitment would be enforced by the U.S. Attorney General's office, the Signal Corps "dream team" stepped aside and fell into the background in 1913.

1941 - Edward E. Whitacre, the son of a railroad worker and union activist, was born. He is expected to retire in November, when he turns 67, but the AT&T board recently extended his contract to 2008.

1963 - Whitacre began his career with the Southwestern Bell Telephone Company in 1963 as a facility engineer.

1964 - Whitacre was a native of Ennis, Texas and graduated from Texas Tech University in 1964 with a bachelor's degree in Industrial Engineering.

1984 - The government breaks upTheodor Vail's dream of "one Universal Phone Service" in 1984,

1988 - In October 1988, Whitacre was made president and chief operating officer of Regional Bell Operating Company, Southwestern Bell Corporation.

1990 - Two years later, Whitacre obtained his current position as chairman of the board and chief executive officer.
1990 - Whitacre, took over the helm at SBC Communications Inc. in 1990 when the San Antonio company was the smallest of seven Baby Bells created by the AT&T breakup. Ma Bell took the long-distance network, leaving the local networks to its former subsidiaries.

1991 - NBS100's LookRadio founded, Murray, Kentucky.

1995 - In 1995, Southwestern Bell Corporation changed its name to SBC Communications. Whitacre led SBC through a series of mergers and acquisitions in building the largest provider of both local long distance telephone services and wireless service (through its Cingular division) in the United States.
1996 - FCC visit by Whitacre. One day, Hundt of the FCC said, a tall, well-fit man sat alone outside his FCC office soon after Congress passed the Telecommunications Act of 1996, which was designed to spur phone competition.
Although well known among telecom executives, Whitacre could go unrecognized elsewhere, "He was so low-key, the secretary didn't even recognize him," Hundt said. "After a while, he sent in a note saying that Ed Whitacre was waiting to talk with me."
Shortly after that, Whitacre announced a deal to buy Pacific Bell and its parent company, Pacific Telesis. It was the first acquisition among the Baby Bells. He later picked up Ameritech, which covered five Midwestern states, and Southern New England Telephone in Connecticut.
"He has a real conviction as to how the telecom market and technology are going to evolve, and a real conviction on what his company needs to do to remain competitive," said Altman, who as head of investment firm Evercore Partners in New York has helped Whitacre put together deals over the last five years.

1997 - SBC acquires Pacific Telesis.

1998 - SBC acquires SNET.

1999 - SBC acquires Comcast Cellular, and Ameritech.

2004 - In early 2004, Whitacre snatched AT&T Wireless, a separately owned and traded company, from rival bidder Vodafone Group in England, with an offer at 2:30 a.m. Eastern time while Vodafone executives thought the bidding was over and they had won. Vodafone's board declined to match the bid. By the end of 2004, the old AT&T as well as MCI Inc., the nation's two largest long-distance carriers, were facing declining growth.

2005 - SBC reached a deal in late January 2005 to buy its former parent company. Two weeks later, Verizon Communications Inc., then the nation's largest phone company, agreed to buy MCI.
Both deals won federal and state approvals over protests from consumers, corporate customers and smaller phone companies.
2005 - SBC acquires AT&T .
2005 - AT&T is purchased by SBC, for $16 billion. SBC, headed by Whitacre; takes over two of the regional Bells (Pacific Telesis and Ameritech).
2005 - SBC acquired the struggling AT&T for $16 billion. The phone market is fundamentally different now, however. Cable TV companies sell phone and high-speed Internet service over their networks; mobile phones have become an increasingly affordable alternative to a home phone line; and numerous Web-based companies let users make calls through the Internet for little or no charge.

2006 - Whitacre, AT&T proposed acquisition of BellSouth for $67-billion.
2006 - This time, the newly reconstituted AT&T, formerly known as SBC, has agreed to buy BellSouth, the dominant local phone company in the South, in a stock swap worth about $67 billion. The merger would combine the erstwhile Ma Bell's market-leading long-distance business with local phone companies serving 22 states, or about 40% of the country's phone lines.
To Whitacre, the purchase of BellSouth is not re-creating the Ma Bell monopoly. The landscape is far different from 1984, a time before wireless, before the Internet grew and before any high-speed access existed.
With cellphones, Internet telephony, cable phone service and fast Internet service and the coming broadband technologies -- high-speed wireless and broadband over power lines -- Whitacre doubted in an interview last year that competition would be squelched.
"Consumers have more choices than they've ever had before," he said.
However, Whitacre answers critics or pushes the boundaries, his chances of getting what he wants are good.
"Ten years and one month after Congress passed the Telecom Act, Ed's become the biggest winner so far," Hundt said. "That's a long time to build a company, and I don't think he's made a bad acquisition along the line, while almost everyone else has."
2006 - AT&T and Verizon offers video services through high-speed Internet lines that can compete with cable and satellite TV operators. The proposed merger could actually promote that competition. Offering video through broadband Fiber or DSL connections would be the pipeline that pushes high-speed Internet service into more homes.
"Will AT&T attempt to soak customers or extract extra fees from Web-based companies?" ask critics who have heard troubling comments by Whitacre, about companies such as Google having to pay to use "his" pipes.
AT&T says it merely wants to charge websites for delivering faster service to users. Rather than trusting the company not to hamper the Internet or play favorites, regulators should require it to pledge to preserve a level playing field for all websites, programmers and services as a condition of the BellSouth deal. Customers and websites shouldn't have to pay twice to connect to each other, nor should AT&T or any other network operator be able to give any site or service an unfair advantage over its competitors.
Again, like today, there were just as many judicial activists then, earning a place in history, by making things happen. They angered the electromagnet wave industry innovators, who viewed the court rulings as "overly zealous regulators, with self-serving agendas", says attorney Scott Stubblefield.
Both federal and local judges helped establish the precedents for implementing the Mann-Elkins Act of 1910, and the 1913 "Kingsbury Commitment, that ended any dreams the Kentucky "Big Six" had in creating a National Broadcasting System (NBS) telecom monopoly in Kentucky. (Both Squier and AT&T's, Theodore Vail had worked on the founding of the Mann-Elkins Act of 1910. Squier was co-holder of several patents filed by AT&T).

3. Editor's Note / ABOUT EDWARD WHITACRE
Edward E. Whitacre, Jr., commonly known as Ed Whitacre, is chairman of the board and chief executive officer of AT&T (formerly known as SBC Communications).
Whitacre began his career with the Southwestern Bell Telephone Company in 1963 as a facility engineer. In October 1988, Whitacre was made president and chief operating officer of Regional Bell Operating Company, Southwestern Bell Corporation.
Two years later, Whitacre obtained his current position as chairman of the board and chief executive officer. In 1995, Southwestern Bell Corporation changed its name to SBC Communications. Whitacre led SBC through a series of mergers and acquisitions in building the largest provider of both local long distance telephone services and wireless service (through its Cingular division) in the United States.
These acquisitions included Pacific Telesis (1997), SNET (1998), Comcast Cellular (1999), Ameritech (1999) and AT&T (2005), as well as the current (2006) proposed acquisition of Bell South.
Whitacre was a native of Ennis, Texas and graduated from Texas Tech University in 1964 with a bachelor's degree in Industrial Engineering.
Rules and regulations in the telecommunications industry is a hard thing to swallow for Edward E. Whitacre Jr., and he has complained loudly about how they hinder growth.
But the chairman of AT&T Inc. has built the nation's biggest telecom empire with little worry that his plans will be foiled.
"Ed would say that I didn't pass the right rules and that my successors didn't pass the right rules," said Reed Hundt, former chairman of the Federal Communications Commission. "But the vagaries of regulation have not gotten in the way of his dream, and he's made his business dream come true."
AT&T's planned acquisition of BellSouth Corp. for $67 billion worth of stock -- in a deal announced Sunday, March 5th -- would be the crowning achievement of a 45-year career that has seen the 6-foot-4-inch Texan transform the smallest regional phone company into a global power.
"Ed is a visionary. He has a very long-term point of view and he knows exactly what he believes in," said Roger C. Altman, Treasury secretary in the Clinton administration. "You don't meet many people who are as sure in what they believe in, long-term, as Ed does."
Whitacre expects to retire in 2008, when he turns 67.

Related Stories /

More About AT&T Mildstones.

More Articles • Converging News 112006 / TeleCom BuyOuts, Spinoffs and Asset Seizure Boom

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Yes90 tviNews S90 1102 Is AT&T's Edward E. Whitacre Jr. of 2006, the Theodore Vail of 1906? "Sort of, but this time, says Troy Cory, "Whitacre has the wireless telephone, the Internet, LookRadio, VoIP, Google, Yahoo, NBS100-wifi and the Timeline. on his side. Should Cingular wireless be featured in the NBS Movie?NEWS Convergence - 10 Week of 2006 Winter Issue / / Feature Story / • 110AT&Tmonopoly2006style.htm / Smart90, lookradio, nbs100, tvimagazine, vratv, xingtv, Ddiaries, Soulfind, nbstubblefield, congming90, chinaexpo, vralogo, Look Radio, China Expo, Soul Find, s90tv, wifi90, dv90, nbs 100, Josie Cory, Publisher, Troy Cory, ePublisher, Troy Cory-Stubblefield / Kudoads, Photo Image665, Movies - Television With No Borders

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