Pacific Telecom: The Evolution of a Regional Telecommunications Powerhouse
The story of Pacific Telecom is a classic example of American industrial growth, beginning as a small local operation and expanding into a diversified telecommunications entity. From its humble roots in Washington state to its eventual integration into a national carrier, the company's trajectory reflects the broader modernization of the telephone industry.
The Foundations of Telephone Utilities
The company's origins trace back to Norman Howerton, the owner of Ilwaco Telephone and Telegraph, a local operating company in Ilwaco, Washington. In 1955, Howerton sought to modernize his network and attract the necessary capital for equipment upgrades. To achieve this, he organized Telephone Utilities as a holding company—a corporation designed to own the controlling stock of other companies.
Growth accelerated quickly as more customers joined the network. In 1966, Telephone Utilities made its first strategic acquisition by purchasing Gem State Utilities of Idaho. By 1972, the company had acquired 22 different firms, providing service to 60,000 customers across four states. To maintain efficiency during this rapid expansion, the company consolidated its management into semi-autonomous districts.
Expansion Under Pacific Power and Light
A major turning point occurred in 1973 when the Pacific Power and Light Company (PP&L) of Portland, Oregon, acquired Telephone Utilities. PP&L already operated Northwestern Telephone Systems, which served 40,000 customers in Montana and Oregon. PP&L integrated these existing operations under the control of Telephone Utilities.
Under this new ownership, the company continued to acquire small telephone providers and modernize its infrastructure. A significant technological leap occurred in 1975 with the introduction of electronic switching—the process of using digital computers to route telephone calls—in Kalispell, Montana. By 1979, 14 acquired companies were merged into Telephone Utilities of Washington, and PP&L expanded its reach further by acquiring Alascom from RCA.
The Rise of Pacific Telecom, Inc.
In 1982, PP&L reorganized its holdings, merging its phone companies into a single entity called Pacific Telecom, Inc., headquartered in Vancouver, Washington. Simultaneously, PP&L rebranded itself as PacifiCorp.
The 1980s marked a period of diversification. Pacific Telecom moved beyond traditional landlines into cellular telephony (mobile phone service) and undertook a massive infrastructure project by laying a trans-Pacific cable to Japan.
In the 1990s, the company expanded its footprint through deals with US West Communications, a Bell Operating Company. In 1993, Pacific Telecom announced the acquisition of 45 exchanges serving 50,000 lines in Colorado, a deal that closed in February 1995 under the Eagle Telecommunications division. Later in 1995, the company added another 36,000 lines in Oregon and Washington. During this same year, Pacific Telecom sold Alascom to AT&T for $365 million.
Transition to CenturyTel
The era of Pacific Telecom as an independent entity ended in 1997 when PacifiCorp sold the company to Century Telephone, another carrier specializing in rural service. By 1998, the company was legally renamed CenturyTel of the Northwest, Inc., and its subsidiaries were rebranded to reflect this new ownership.
Key Facts
- Founded: Started as Ilwaco Telephone and Telegraph; Telephone Utilities holding company formed in 1955.
- Major Milestone: Introduced electronic switching in Kalispell, Montana, in 1975.
- Diversification: Expanded into cellular technology and trans-Pacific cabling to Japan in the 1980s.
- Strategic Sale: Sold Alascom to AT&T in 1995 for $365 million.
- Final Acquisition: Sold by PacifiCorp to Century Telephone in 1997.
| Year | Event/Milestone | Key Detail |
|---|---|---|
| 1955 | Formation of Telephone Utilities | Created as a holding company by Norman Howerton. |
| 1973 | Acquisition by PP&L | Integrated with Northwestern Telephone Systems. |
| 1982 | Rebranding | Became Pacific Telecom, Inc. |
| 1995 | US West Acquisitions | Added lines in Colorado, Oregon, and Washington. |
| 1997 | Sale to Century Telephone | Transitioned to CenturyTel of the Northwest, Inc. |
Frequently Asked Questions
Who founded the original company?
The company began with Norman Howerton, who owned Ilwaco Telephone and Telegraph before organizing Telephone Utilities in 1955.
What was the significance of the 1975 upgrade in Montana?
In 1975, the company introduced electronic switching in Kalispell, Montana, which modernized how telephone calls were routed.
How did Pacific Telecom expand its reach in the 1980s?
The company diversified into cellular telephony and expanded its international infrastructure by laying a trans-Pacific cable to Japan.
What happened to Alascom?
Originally acquired by Pacific Power and Light from RCA in 1979, Alascom was later sold to AT&T in 1995 for $365 million.
When did the company become part of CenturyTel?
PacifiCorp sold Pacific Telecom to Century Telephone in 1997, and the name was officially changed to CenturyTel of the Northwest, Inc. in 1998.