WASHINGTON, D.C. - The telecommunications industry provides one of the most poignant examples of how the communications profession is evolving. Those mastering this kind of PR are finding that excelling in this arena requires a keen knowledge of two very different disciplines: the art of press relations and an innate knowledge of regulatory affairs.
Ironically, media relations can present an almost narrow view of external audiences because of the tendency to skew company information for specific editors and reporters. Contrast that with regulatory affairs, when your publics are much more broad. They can range from systems integrators and incumbent providers to consumer organizations and think-tank academicians.
Nonetheless, surviving telecommunications-slanted PR calls for balancing these divergent disciplines, according to analyses offered last week at a "High Tech & Telecommunications Public Relations" conference staged by International Communications for Management in Washington, D.C., one of the hotbeds for telecommunications because of the Securities & Exchange Commission's presence there. Federal policy makers encounter 3,000 to 4,000 document filings every day and your messages must be timely and wholistic (don't try to snowball policy makers and avoid controversy or competitors' stances) for them to have impact, according to ICM presenters.
"[To be successful,] you must identify the public's interest, not your interest," cautions Edward Lowry, assistant VP of external affairs for Bell Atlantic. "You have to acknowledge opposing points of view."
The Telecommunications Turn
One doesn't have to look far to gauge how frenetic telecommunications is today.
Bell Atlantic is a partner in a $55 billion merger deal with GTE announced in July. Bell Atlantic is also the company that acquired Nynex and almost bought TCI, with which AT&T now has plans to merge. Another deal in the works is the merger of MCI and Worldcom.
Another sign of this industry's voluminous state? Communications Daily Editor Steve Geimann says he receives hundreds of press releases every day, but only has "good relations with two dozen companies because they have good PR departments."
Geimann also points to one recent case which provides proof of how news involving the telecommunications industry - already closely tracked by major newspapers such as The Wall Street Journal and The Washington Post - can have geographic pull even though they spawn national coverage.
For instance, when Geimann covered the recent labor dispute between US West and the Communication Workers of America, the companies sought to solicit coverage in regional publications and Geimann ended up relying on wire services and had to play "catch-up." A tentative arrangement was reached last week after a 15-day strike.
While your job may call for you to keep a tight lid on issues in legislative and competitive venues, your communications department must still keep the journalists you deal with on a regular basis up-to-date.
When you don't, it forces journalists to rely on other sources, a phenomenon that's also prolific in regulatory affairs, presenters say. In both cases, providing timely information becomes a crucial component of issues management, one of the top drivers of the telecommunications industry.
Geimann is a journalist who is also increasingly relying on the Internet to chase down information, because of government domains that act as clearinghouses and because of services like edgar-online.com that post SEC filings. And George Brandon, editor of Telecommunications Reports International, devotes several hours every day to canvassing the Internet for news. Both were speakers at the ICM event.
Regulating Your Image
PR programs that place equal weight on the two very different roles of media point person and legislative liaison has become the glue for many in telecommunications because of how quickly telcos are moving into other industries, competing with businesses such as Internet Service Providers and cable companies. To help manage regulatory affairs, Lowry says that all of these audiences must be considered:
- Manufacturers
- Cable/entertainment companies
- Existing providers (in a market where you're developing a niche)
- System integrators
- Wireless businesses
- Computer companies
- Competitive providers
- Trade associations
- Resellers
- Consumer organizations
- Federal and state policy makers
- Academic organizations
- Internet Service Providers
- Inter Exchange Carriers (long-distances companies)
IR Term$
Those in telecommunications PR, however, can't ignore IR. And players' interests are going to vary significantly, according to David Cordeiro, director of IR and government affairs at Williams Communications. Here's a description of some of the players' parts:
Sellside Analysts: Follow narrow industry segments (10-15 companies) and issue frequent reports used by the rest of the investment community. Issue ratings on stock (buy/sell/hold). Heavily influenced by investment banking opportunities.
Buyside Analysts: Employed by institutions such as banks, mutual funds, pension funds. Research and recommend companies to portfolio managers. Supplement research with sell-side reports.
Institutional Salespersons: Work for brokerage firms selling to institutions. Strong influencers.
Registered Representatives (Brokers): Make recommendations to clients. Information comes from many sources. Influenced by own firm recommendations.
Portfolio Managers: Strict rules govern what companies they can hold in their portfolio. Portfolio may contain 100+ stocks.
Individuals: Generally, most influenced by their broker. Tend to hold stock over long-term promoting stability.