Greg Ottensmeyer
Gregory Vernon Ottensmeyer, Sr., b. 15 October, 1952 in Baltimore, MD is an American entrepreneur and businessperson. Ottensmeyer’s pioneering efforts in the 1970s helped incubate competition in the US telecommunications industry. His actions along with MCI and others[1] contributed to the U.S. Department of Justice mandated breakup of AT&T, (the Bell System monopoly) in 1984, by decree of the Honorable Harold H. Greene, encouraging a climate that would fuel rapid development of competitive telephony and technological innovations leading to creation of the public Internet.
Present Business
Today, Ottensmeyer serves as President of TelephoNET, Corp, a technology company he co-founded in April 1996 with partner, D. David Wielech.
TelephoNET [TNET] is a privately-held company providing integrated IP telephony, UC and CC systems, and telecom management services, worldwide.
Ottensmeyer also serves as founding Director and VP of Shortline Systems, Inc, a MD corporation formed in 1994. Shortline operated a long distance calling business from 1994 to 2003 when Ottensmeyer and his wife, Gabriela sold the customer base of the once innovative flat-rate calling service to USA Datanet.
Early Business History
In 1976, while operating the A. A. Telephone Answering Service in Bel Air, MD, Ottensmeyer began patching local phone calls together on a 557B corded switchboard to create flat-rate long distance calls that he resold for 25¢ per-call, far less than the 28¢ to 43¢ per-minute charged at that time by the local telephone company, C&P Telephone Company a division of AT&T – a/k/a Ma Bell - the regulated telephone monopoly. Ottensmeyer and Beryl B. Franklin co-founded Mercury Metro Service believed to be the first application of flat-rate long distance service in the US. Ma Bell attorney’s considered the activity illegal and a violation of tariffs. They obtained a warrant from Maryland authorities to search the Answering Service premise and seize telephone equipment used by Ottensmeyer to provide the non-toll calling service.
The Raid
On March 26 1979, MD State troopers along with AT&T security personnel raided A. A. Answering Service premise, which doubled as Ottensmeyer’s home. Police confiscated electronic devices used by Ottensmeyer to provide the service. Immediately after the raid, and without charging Ottensmeyer of any crime, the telephone company sent notice to each answering service client advising them that they would be disconnecting their telephone answering services in 30-days. Ottensmeyer v. AT&T, 1979-1985
Antitrust Suit
Ottensmeyer hired Mercedes Samborsky, Esq, who was an answering service subscriber and Brian Nash, Esq to represent AATAS interests. Ottensmeyer's attorney's filed for injunctive relief in MD District court and petitioned the MD Public Service Commission to stay Bell’s threat to put the budding competitor out-of-business. Against a legion of AT&T attorney’s, Ottensmeyer’s counsel convinced the court that AT&T should not be allowed to burden answering service clients because Ottensmeyer violated no law by seeking to compete against AT&T's monopolistic long distance service. Bell attorney’s were compelled to reverse their position and ultimately agreed to allow the answering bureau to continue (without the long distance service) provided Ottensmeyer promised not to enter the business premise. Ottensmeyer was advised to agree to AT&T's mandate, even though it resulted in him being evicted from his home.
In 1980, attorneys for Ottensmeyer retrieved the equipment that was confiscated 1-year earlier by State Police and he filed Anti-trust charges against AT&T, et al, claiming that the Bell System's actions constituted restraint of trade in violation of the Sherman Act. After years of litigation, the court ruled against Ottensmeyer upholding the telephone company’s claim that his use of Bell telephone lines constituted tariff violations sufficient to justify AT&T’s strong-arm tactics in 1979.
Ottensmeyer appealed before the United States Court of Appeals, Fourth Circuit. Case No. 84-1068 was argued on Dec 6, 1984 resulting in affirmation of the lower court ruling.
Leo George, Esq., notable communications attorney, who provided early legal counsel to MCI and its founders Goeken & McGowan, represented Ottensmeyer's case before Judge Greene in the Bell monopoly Divestiture hearings in 1983, wherein it was ruled in the DOJ's Modified Final Judgment (MFJ) that resale of telephone service shall be permitted. Judge Greene's ruling resulted in breaking-up the Bell System monopoly when it created seven autonomous Baby Bell companies and is credited with opening the US telecommunications industry to competitive forces. Consequently, countries around the world opened their telecoms marketplace to free market competition.
References[1]
1. MCI and its founder Jack Goeken 2. Carterphone is a 1968 decision by the Federal Communications Commission that allowed the Carterfone and other devices to be connected to AT&T's network, as long as they did not cause damage to the system. This ruling {13 F.C.C.2d 420} resulted in a 1968 decision to allow connection of foreign equipment to the Bell telephone network.
3. Hush-a-phone In Hush-a-Phone v. United States, 238 F.2d 266 (D.C. Cir. 1956), although the FCC sided with AT&T to disallow the Hush-a-phone (a small, cup-like device which mounted on the speaking party's phone) the decision affirmed the principle that attachments that did not harm the Bell telephone network must be allowed, thereby opening the door for future competition.
4. US Court of Appeals, Case No. 84-1068: Titled: Gregory Ottensmeyer, Individually and T/a A.A. Answering Service; Melissa Ottensmeyer, Individually and T/a A.A. Answering Service; Telecom, Inc.; Appellants, v. Chesapeake & Potomac Telephone Company of Maryland, a Maryland Corporation; American Telephone and Telegraph Co., Incorporated in the State of Maryland, Appellees., 756 F.2d 986 (4th Cir. 1985)Federal Circuits, 4th Cir. (February 26, 1985) Docket number: 84-1068.
Citations Permanent Link: http://vlex.com/vid/37066428 Id. vLex: VLEX-37066428