Beautiful, Bountiful 1997. Hateful, Ugly 1998

Thomas Conner • Sep 27, 2013

Telalink was on its way to hitting $1 million in sales that fall. To celebrate, I called a surprise meeting one evening, announced that we had officially become a $1 million company and invited everyone for dinner at Amerigo’s by way of the longest stretch limousine that I could find in Nashville. The million dollar sales mark was such a landmark, and yet, we felt that we were just at the beginning. It was hard to look beyond Nashville with all of the opportunities in front of us. 

Telalink was on its way to hitting $1 million in sales in the fall of 1997. Not too shabby for a hardly-3-year-old industry. To celebrate, I called a surprise meeting one evening, announced that we had officially become a $1 million company and invited everyone for dinner at Amerigo’s by way of the longest stretch limousine that I could find in Nashville. A million dollar sales seemed like such a landmark, and yet, we felt that we were just at the beginning. It was hard to look beyond Nashville with all of the opportunities in front of us. 


What kind of opportunities? Well, for one thing, we were having a full-fledged love affair with Nextlink (currently known as XO Communications). That all started with the Telecommunications Act of 1996 which changed the landscape of phone services in the US. You may recall that until the law passed, there was generally one monopolistic provider in each market. In our region, it was BellSouth. If you wanted phone service, you bought it from BellSouth. If you did not like the service (and Bill frequently made his dissatisfaction of such known), then you had the choice of.....using BellSouth. There were no competitors but we absolutely needed BellSouth to keep adding more and more phone lines in order to accommodate our ever-growing connectivity business. I don’t even remember how many lines we had but there were enough that we ended up with the phone company just installing what looked like a rack of phone wires and various doo-dads to make it easier to turn on more lines for us. 


So, when the 1996 act was passed, suddenly, there could exist what became known as CLECs (competitive local exchange carriers) and the ILECs (incumbent local exchange carriers- BellSouth, which became ATT) HAD to accommodate them in various ways, even if it meant that they had to allow the CLECs to use some of their fiber to connect a customer to their phone lines. Tricky, confusing and complicated but that was the new law. When Nextlink came to town and launched their Nashville operation on July 4, 1996, Bill and Bob were most excited. Why? Well, for one thing, Nextlink had no plans to sell Internet services. Therefore, no competition with Telalink. BellSouth was already in that business. Secondly, as the CLEC that wanted to compete head on with BellSouth, they wanted to do whatever it took to get happy customers. Bill and Bob were all too eager to let Nextlink cater to Telalink’s needs.


Before they went live, the Nextlink team, led by Don Hillenmeyer, hosted a reception to introduce themselves to the Nashville market. Bill and Bob, wearing the standard Telalink “uniform” of t-shirts, sneakers and khaki shorts, attended. While it was, at first, a little deflating to the Nextlink execs that Bob won the door prize (I think it was one of those new-fangled IBM compatible laptops but I can’t remember), thinking some college-age punk with no real business potential was winning the prize, they could not have been happier to find out just how much business the shorts-wearers represented for them.


As soon as Bill and Bob confirmed Nextlink's viability, they approached Jeff Lovejoy, a Nextlink sales executive, and said, “We can do two things for you. First, how would you like to sell your phone lines to Telalink? We need a few hundred so we can tell BellSouth to go to hell and die a long, painful death. Second, EVERY customer we have would probably be interested in moving THEIR phone services to you. Did we mention that we have a bunch of customers in Nashville and that we remind them of the hatred that we all share for BellSouth all the time?”

And just like that, Telalink became one of Nextlink’s number one customers if not THE number one customer, as well as the best referral source for Nextlink. Once again, the Telalink team was first to jump and the payoff for everyone was that much sweeter. Soon after, other CLECS came to the market and it wasn’t too long before we had racks in our “server room” with BellSouth, Nextlink and Adelphia all standing next to each other, almost like Coke, Pepsi and Dr. Pepper machines in a snack room. Of course, over time, the BellSouth rack was just a skeleton, sitting all by its lonesome, a relic of the past....and while I can’t say for sure, I would not be surprised if Feisty had not found it particularly enticing to find her way into the server room with a “Jackson Pollock-esque” turd spattering on the BellSouth rack. Sorry for that mental image.


It turns out that Nextlink was an excellent referral source for Telalink. "Hmmmm, a marriage made in heaven? Maybe Nextlink would need to buy Telalink one day? Just maybe,” Bill Butler thought to himself.


As we were booming in 1997, we also decided it was time to install a billing system. Until then, we were using a rather masterful program that was designed by Bill in Filemaker Pro. It was, however, getting slower and slower and I was getting concerned that there were some potential deficiencies from an accounting perspective (although a full IRS audit of 1997 proved that we were clean as a whistle). With all of our best minds, we settled on a program called Expansion, which was built by former ISP people for ISP people. We had found our solution....so we thought. After a rather unhelpful week of training in Glendale, California, where Bill and I discovered the new swing movement at the legendary Hollywood Brown Derby bar (of Swingers fame) and Kelly discovered Pappy’s strip club, we were ready to launch on January 1, 1998. It was a complete and utter disaster. Nothing worked. EVERY single bill included a charge for bobparks.com. “We can’t send these bills out like this!” I screamed. “Nothing is right. The amounts are wrong, the services aren’t all included and the only customer who should be paying for bobparks.com is BOB PARKS!” 


It’s funny. 1997 was profitable, peaceful, exciting and rewarding. It’s as if someone had flipped a switch over night and 1998 was lurking around the corner, ready to work some evil magic on us. Personally, I was starting to feel it. I had bought a condo and rented out the extra room to a Vanderbilt business school student. Around the end of 1997, he was exhibiting more and more signs of paranoia, OCD and germaphobia and his actions and demeanor were getting more and more bizarre. For example, he would use a whole roll of paper towels to wash and dry his hands. Rather than throw the paper towels away, he would hide them behind the books in the living room bookshelf. He blocked the entrance to his bedroom and bathroom doors with jugs of chlorine. He put socks on the door handles. He bleached his clothes so much that one day, while he was leaving, I noticed that the entire back of his shirt had flaked off. He stopped driving his car and only rode his bike wherever he went with a garbage bag covering himself. He only used a bar of soap once and then left it on the shower floor- something I only discovered after he moved out. He acted very angry around me all the time. He would yell at me about irrelevant things and I think he threw objects at my cat. Not a pleasant environment to go home to but it took until May to get him out. 


I also started out in 1998 moving my office, and only my office, to Cummins Station. Our friends, Dave Tempero and Stan Wilson, had closed down their business but they still had a few months left on their lease. They also had a bunch of furniture and equipment for which there was not an immediate home. So, they left everything as is and we, without enough space, decided to at least temporarily borrow the space for the time being. I was miserable and lonely down there. I was by myself most of the day until Jay Hawthorn would show up after class to help with accounts receivables. 


It was the dead of winter; we weren’t able to bill for 40 days; I was sick; my roommate was showing some pretty clear signs of mental illness that was going untreated; my office was far away from everyone else; what else could go wrong? It wasn’t until the weekend right before February 9 that great programming minds of Telalink finally got Expansion billing software to work. At least, it wasn’t going to get any better than what we finally got. I remember asking for all able-bodied staff to show up on that Saturday to be prepared for a massive effort to print and fold bills (you didn’t email invoices back then) only to discover that we were still having problems. bobparks.com was still spooking our system among other things. 


Jay finally came up to me and said, “What do you need for me to do?” I looked at him and said,”Take this cash, go to the Target and buy me a wooden, Louisville Slugger baseball bat. NO! Buy TWO baseball bats!” 


“Seriously,” Jay said. “What can I do?”


“Seriously,” I calmly said. “Get the bats, now.”


Jay returned from Target with the bats just as I ordered. I took one grabbed some boxes and said, “If anyone cares to join me, I’m going outside to work out some of my aggressions. This feels like the least dangerous thing that I can do.”


I don’t really recall who joined me but I beat more cardboard boxes to a pulp that day and, I have to admit, it felt pretty good. Whether I, in any way, inspired anyone, or not, the billing system churned out its first bills on February 9, 1998. Cashflow was everything in those days and it turned out to be the beginning of time when the stakes felt a little higher, the risks a little more riskier and the pathway a little more perilous. 

One Louisville Slugger remains within arm's reach in my office to this day. The other is at home. 



Oh 1997, we didn't know how good you were to us.


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My first day at Telalink Corporation, October 11, 1995, was fascinating. I had not been in the office for more than an hour when I received my first phone call. Actually, my desk, computer and phone were not actually set up yet so Mary Watkins, Bill’s mother, took the call. “It’s someone from the Winchester Police Department. Evidently, the neighbor whom you paid to clean out your basement and garage broke into your house and stole a window air conditioner,” said Mary. “The policeman wants to know if you want to press charges.” One of my neighbors was battling a drinking problem. When he was sober, he was a great guy. When he got drunk, he became somewhat mischievous. I gave a hundred dollar bill to another neighbor who agreed to be the escrow agent. If neighbor #1 (the beer lover) cleaned the basement (it was really a cellar. This was a century old house that had belonged to my grandmother) and hauled off all of the trash, neighbor #2 would transfer the $100 to him. Neighbor #1 performed to expectation. Neighbor #2 paid neighbor #1. Evidently, neighbor #1 then proceeded to liquor store #1 and perhaps liquor stores #2, #3 and #4 where he proceeded to convert the $100 into another form of liquid asset. He imbibed the rest of the day and found the courage to claim a small window air conditioner as a bonus. Neighbor #2 was able to watch neighbor #1 break into my house and find his way to a second floor bedroom before the commotion erupted during the air-conditionerctomy. “No need to press charges,” I said. “Tell him to put the AC back and stay out of my house. I’m about to rent it out and if he does something like that again, I’ll have to take a more punitive approach.” Sadly, my new renter proved to be a colorful enough character in her own right but I will save that for another day. Much was happening at Telalink in those days. Joel Moses was dedicating his weekly column in the Nashville Scene to all things Internet. He was giving Telalink plenty of good coverage and Channel 4 (WSMV) traded out commercial spots (“Internet! Twice the Speed! $35!”) in exchange for their own website and access. In fact, not long after the web came along, local news stories about porn on the web were gaining in popularity. It seemed like Tim, ordained by the Nashville media as the foremost authority on Internet porn, was always on the news, discussing the latest trends in the more salacious content on the ‘Net. Bill once commented that he knew that we were on to something when pornographers, gamblers and churches all wanted on the Internet. By this time in the story, Tommy was out, although he was still in. Still an equal shareholder with Tim and Bill, and still a resident of 110 30th Ave N, Tommy decided that this was no life for him and he opted to take a full time job with Vanderbilt. Not long after I arrived, we all agreed that the best arrangement was for me to simply buy him out. That would free him of any responsibilities as a principal and it would validate the importance of my position, not only as the financial officer, but hopefully as leader, negotiator, organizer, and strategist. For example: Issue #1: ITS Communications found out about Telalink and approached Bill about reselling Telalink service as its own service in the Nashville market. Telalink would get paid $10/month per customer. ITS would sell and support the service. While this sounded like an easy deal, ITS sold the hell out of the service and, if I am not mistaken, they sold it unlimited internet access, a still-new concept. Telalink customers were only allowed 30 hours a month but that was soon doubled to keep up with the competition. You see, unless we had an available phone number for every customer to be able to dial into our service at the same time, the first hapless soul to dial in when all of the lines were occupied would get a busy signal. Remember the early ads “no busies?” So, part of the challenge was to limit usage and kick people off after a certain amount of time online. We also gambled that not everyone would dial in at the same time. However, when ITS private-labeled Telalink service, the model was nearly blown up because they were selling accounts faster than we could add phone lines and ITS support was terrible. Back then, customers needed a lot of help, and some luck, to get online. Telalink had created an installer kit that got users set up and it included a free version of Netscape Navigator. ITS customers started to figure out that they were actually just dialing into Telalink and, because they could not get adequate assistance from ITS, they would just call us. Bill was not happy with the arrangement so I read the contract that they signed. It looked pretty simple to me. All we had to do what was give ITS 60 days notice of our intent to cancel. So, I wrote a letter to ITS, referenced the agreement, sent it overnight and added that we would only agree to renew at $35/month per customer. We got an instant response. They argued that this was the same price at which they were selling the service and this would kill their model. We agreed but showed no signs of letting up. If I recall, we were able to triple our ITS revenue for about 4 months while slowing down our phone line orders to a more reasonable level, not that Bellsouth was cooperating with our requests anyway (see paragraph 5 of http://www.thomasbconner.com/post/2013/02/28/whats-an-internet-again.582282). ITS decided to leave us and we were happy to dissolve our association. Suddenly, we had plenty of capacity to grow our customer base. Issue #2: As I recall, Bob was traveling back and forth to “Convent Place” quite a lot in my first few days at Telalink. Part of the reason was related to sheer brilliance. Telalink worked a deal with Charles, the owner, who had converted an old convent into an eclectic assortment of offices, yoga, banquet space, etc. The deal was that we would feed the entire building with a big pipeline of dedicated internet access and then break out lines to individual subscribers throughout the building. It would be a very cool amenity- one of the first “wired” buildings in Nashville...and Telalink’s margins would be very attractive. The not-so-brilliant part was the idea that we would move half of our personnel to Convent Place. Now, at the time, Telalink occupied two condos, conjoined by an enclosed upstairs landing. That’s a total of two kitchens, 4 bathrooms and total of 7 rooms (one was already our server room) that could be used for office space/work stations. Why would we need to split up our team and occupy space in another building? While it first appeared that we had no room, it was also true that Tim and Timmy still lived there. Bill moved out and his bedroom became our shared office along with Scott Holden, “aka Splotchy.” To learn more about Splotchy, go here . In addition, Vanderbilt friend, Dave Tempero (currently IS Business Manager for Network Systems at Nintendo), had his consulting business, Sector 3, operating out of one of the rooms. Finally, there was one more consulting company called Nvision, owned by Shawn Yeager, and I really never knew him or what his company did. He was sort of like Lazlo from Real Genius. Ever so often, I would see Shawn come and go with nothing more than a “Hey, how are you?” and then he would disappear. My point was that it seemed really important to me that we should try to work near one another (i.e. in the same office space), at least until I got a little more familiar with the basics- the who, what, where, when, why, and how of Telalink. In other words, it might be time for some other folks to move out so that we would have enough room for Telalink staff. No move to Convent Place. Issue #3: No insurance. None. On anything or anyone. All I can say is that the first insurance sales person who cold-called me was a lucky man. Until I could get a business commercial liability policy, workers compensation insurance and health insurance coverage for everyone, I went to bed dreaming of catastrophes, injuries and other unsavory workplace disasters that would render Telalink to the status of defendant or debtor. Issue #4: No staff meetings. What I remember were one-on-one conversations and debates between Bill and Robert Beckett, Bob and Robert, Bill and Bob, Splotchy and “the fat guy,” as he was occasionally called and almost everyone had some kind of crude comment to share with Tim in the event that Feisty (Tim’s cat) pooped on a cable or someone’s work area. Izzy, the other office cat, was generally well liked, as was Feisty, but Feisty was unbelievably artful in her fecal distributions throughout the office. I decreed that we would have weekly, face-to face meetings and, accordingly, would take notes. This proved to be a challenge. First, Bob spoke too fast. Secondly, it seemed like everyone spoke in code with letters: TCP/IP, HTML, ISDN, T1, T3, FTP, 56K, 28.8, Bitsurfr, blah, blah blah. At one point, in the midst of a spirited debate between Bill and someone, probably Bob or Robert, his passionate argument boiled down to one Shakespearean moment when he declared, “The Radius MUST authenticate to the Sparc!” He even used hand gestures. I had scribbled indecipherable comments throughout our first staff meeting but there was one thing that resonated, “The Radius must authenticate to the Sparc.” I thought to myself that if there is one thing that you take away from this meeting today, you will believe with all of your heart and all of your soul that the “Radius must authenticate to the Sparc.” The moment came for the scribe to report what was said earlier about something so I re-read my notes. “Bob said something about something that I did not understand. Bill disagreed. Robert disagreed with Bill but said Bob was wrong too....Let’s see, something, something, something and, oh, Bill says, ‘The Radius MUST authenticate to the Sparc.’ That’s really all I got.” Everyone laughed. It must have been funny. Don’t ask me why. Seventeen years later, I still don’t know what they were talking about. By the way, Robert Beckett is now Services Technical Leader for Cisco Systems. You can see him, still talking code, here.  Our meeting adjourned and we reconvened at either Harvey Washbanger's or Rio Bravo. I forget which but it HAD to be one or the other.
By Thomas Conner 03 May, 2013
was really glad to get some feedback from the Telalink intern graduates following my last post . There were a few posts in response on my Facebook wall that I thought needed to be merged into my blog so that’s what I am doing today. Before I do, though, I was listening to a story on NPR about how women novelists in the US were being classified in Wikipedia ( http://n.pr/16eApbn ). I was only half listening when the word “Kaldari” rang out and I realized that Ryan Kaldari was being interviewed! Ryan was one of the original “unofficial” MLK interns who attended UC Berkeley before working for Sitemason for many years. He left us to work for Viacom and he now calls San Francisco and Wikipedia his home. One day, I’ll write about how, as a student, Ryan wrote a $2.00 counter check to Rio Bravo to pay for his soda but he either forgot to sign the check or wrote so illegibly that no one could figure out how to contact him, which was only necessary because the check bounced! The Rio Bravo team knew the Telalink crew well enough to venture a guess that the $2 mystery check writer was somehow associated with them. And now, let’s hear from some of Ryan’s colleagues from MLK. First, Paula Pfleiger Thrasher writes: “I think I mentioned in the other post, not quite the full story on how the internships started. Carl Tashian was the first MLK intern, but I think he may have even started before the first official school co-op internship thing for school. Carl can fill in details there. I didn't start until October-ish timeframe in 1995. I had originally lined up an internship downtown that fell through right as the school year started, then ended up instead working out at the McClures in Belle Meade in the receiving department doing data entry on bill of materials/invoices/etc. I did that for at least six weeks then my boss got arrested for tax fraud. Plus it was mind-numbingly dull. So I was looking for a new internship when Carl invited me to Telalink. I started working help desk, and there was a paid employee called Rich (I think - I forget his name? Anyone else remember?). He was kinda passive aggressive and a little jerky. At that time Bill (Butler)/Bob (Collie) were sick of answering customer calls so they put up with him. He eventually quit (got fired?) and at one point the entire help desk team was pretty much me and Bill's mom (Mary Watkins). Crazy. Then we hired Scott (Sears) and later Marc (Powell). I never wrote any real sexy or famous sites, but I did write that dang support website complete with filemaker database backend (I think? can't remember) along with a little homegrown ticket system. Didn't make Time magazine though - ha.” [editor’s note: I am not disclosing the name of the jerky guy but I can state that he was not fired. He left for another position with another company] Daniel Templeton writes: “I was at Sun until it became Oracle and about a year and a half longer. I'm now two Years at Cloudera, the leading Hadoop distro provider. I did indeed marry Cari, and she's now been at Google for six years.”  Finally, Carl Tashian shares this fantastic memoir: Starting around 1993-4 I had dialup Internet access via CTRVAX and later via PPP from Vanderbilt's CS department. I paid by the CPU hour or something. Which at first was expensive, but once I moved to PPP it was actually the wrong way to bill things, so I could be on all day and would barely pay anything in terms of CPU. And perhaps that is why, at some point, Vanderbilt limited access to the university community and shut down outside accounts like mine... But I was hooked to the Internet at that point. I was running a MUD and writing code for it, running a BBS w/UUCP that needed nightly Internet access, I was playing with the first generation of web browsers, I was a newsgroup junkie, and I couldn't imagine giving all that up. I think I got an AOL account for a minute, but that didn't work out--it wasn't close enough to the metal. So I found Telalink. It was exactly what I wanted, but too expensive for me. Something like $40 per month? Way out of my price range. So (and I honestly think this is the first time in my life that I'd ever done this) I cold-called Telalink and invited myself over. I came up the back stairs and climbed a ladder to the roof, where Bill and Bob were grilling up some food and working off of RoofNet, which was really just one ethernet cable snaked through an open window. Anyway, that first meeting was a little awkward, because I was a shy kid so new people were a challenge. But after chatting a bit we went downstairs and I remember Bob showing me around-- the Linux boxes, the Cisco routers, ISDN modems, etc. It was definitely a wonderland for me, and the fact that Telalink had a 256k link was a huge draw. I remember telling Ryan and Paula about it. Anyway, I'm not sure how it came up but I started spending more and more time at Telalink. This felt like it was way before the official internship, which would have been from Sept 1995 to June 1996, where I worked about 25 hours a week at Telalink. Tim, Bill, Bob really stayed out of our way as interns, gave us full access to everything and pretty much let us explore our curiosities as long as we didn't get in the way too much. I think in particular Bill is a great leader in that way--very trusting. And that's how the HTML guide came to be--just by being curious and having the time to follow it through. It felt a lot more like a real job during the Official Internship period. I think it was Ryan, Paula, and I. At some point, before we hired Kelly Setzer, it seemed like all of the web & DNS servers were my responsibility. Bill gave me a pager. I took it very seriously. I'm sure I made a lot of mistakes, and I remember, when Kelly came on board, realizing that he was a Real Sysadmin. I learned a ton from him. Telalink was a great learning environment across the board, life-changing for me. And I think things like the HTML guide got me into college, ultimately. Because I wasn't that psyched about school, didn't take it seriously, and didn't test well. I wanted to make things people would use. Still do. BTW the Telalink Virtual Tour website is still up ( http://tashian.com/virtela/ ). I it threw together by scanning some pics from an old book on telecommunications from the school library. It’s stories like these that remind us just what a frontier it was back then but, maybe even more importantly, what great relationships, vocations and contributions came out of this “internship” community. So much passion to learn and create. I hope that we can get some more stories from other Telalink graduates. I also wonder where and how these stories are happening now.
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