Sunlight Foundation

Massive Lobbying Operation For Telecom Merger

AT&T is already the second largest mobile phone operator in the country and is looking to get bigger through a merger with T-Mobile, the fourth biggest mobile operator. That merger will be the focus of a hearing held by Sen. Herb Kohl, D-Wisc., in the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights. In preparation of scrutiny from Congress and the Justice Department AT&T is spending big on lobbying and campaign contributions.

In the first three months of this year AT&T has already spent $6.84 million lobbying the federal government. That is 44 percent of the amount they spent during the entirety of 2010. In addition, the phone giant's political action committee spread $616,500 to lawmakers and political parties, according to a Sunlight analysis covering January through March of 2011.

The Senate Office of Public Records shows 31 lobbying firms registering lobbying activity for AT&T, including four new registrations, all to lobby on the merger, this year.

One of those newly registered firms is Peck, Madigan, one of Washington's biggest lobbying firms. The former staff director of the Senate Judiciary Committee, which is hosting today's hearing, and the former chief of staff to committee member Sen. Amy Klobuchar are both registered with Peck, Madigan to lobby for AT&T.

The AT&T lobbying team also includes six former members of Congress. Two of those former members, Trent Lott and John Breaux, hold one of the most expensive lobbying contracts with AT&T at $120,000 from January through March.

The AT&T/T-Mobile merger has been controversial as it would consolidate 80 percent of the mobile market in just two companies--AT&T and Verizon.

Much of the opposition to the merger has come from Sprint Nextel, currently the third largest mobile provider. An official statement from Sprint Nextel stated, "If approved, the proposed acquisition would create a combined company that would be almost three times the size of Sprint in terms of wireless revenue and would entrench AT&T’s and Verizon’s duopoly control over the wireless market."

Sprint Nextel's lobbying spending barely registers when compared to AT&T's. Sprint spent $583,000 lobbying from January through March or less than one-tenth of AT&T's lobbying expenses. There are currently nine lobbying firms registered to lobby for Sprint. (As mentioned above, there 31 lobbying firms registered with AT&T.)

Today's hearing will feature testimony by the CEOs of AT&T, T-Mobile, and Sprint Nextel.

The Sunlight Foundation will be covering the hearing through the Sunlight Live platform. The hearing will begin at 10:15 am.

Opponents of net neutrality attending congressional telecom meetings spend more on lobbying

Last Friday, two congressional committees held closed door discussions with 31 representatives from industry and activist groups to discuss writing a new broadband Internet policy, largely focused on whether and how to implement net neutrality rules, into the Telecommunications Act of 1996. While the meeting contained more proponents of net neutrality, opponents of implementing the policy hold a lop-sided advantage in lobbying spending and contributing to political campaigns.

In attendance were some of the major organizations on both sides of the debate. The biggest organizations in attendance in support of the legislation included Google, Microsoft, Amazon.com and two service providers breaking with their industry, DISH Network and Sprint. Opponents included AT&T, Verizon, National Cable & Telecommunications Association, Communications Workers of America and the US Telecom Association. A number of public interest and consumer groups were also present.

According to data obtained from the Center for Responsive Politics, net neutrality opponents represented at the meeting combined for $19.7 million in lobbying in the first quarter of 2010. Supporters, on the other hand, only combined for $4.7 million in first quarter lobbying expenses. (Organizations with undefined, or unidentifiable, positions combined for just under $1 million.)

The major campaign contributors opposed to net neutrality gave $6.9 million to political candidates from 2009-2010 while major contributors in support gave $2.2 million.

Both sides of the debate sent lobbyists with previous government experience into the closed-door meetings with the committees. Eight of the 31 organization representatives present at the meeting previously worked in Congress. Five of those eight previously worked for one of the two committees holding the meeting.

Lobbyists for net neutrality proponents had good connections to the lawmakers in the room. Google's Johanna Shelton previously worked on the House Committee on Energy & Commerce; Microsoft's Paula Boyd used to work for the Senate Committee on Commerce, Science & Transportation; Amazon.com sent lobbyist Emmett O'Keefe, a former staffer to Senate Committee on Commerce, Science and Transportation member Sen. Byron Dorgan.

Two organizations in opposition sent lobbyists with similarly good connections: National Cable & Telecommunications Association sent James Assey, a former staffer on the Senate Committee on Commerce, Science and Transportation and US Telecom Association sent Walter McCormick, another former staffer from the Senate Committee on Commerce, Science and Transportation.

The meetings, held jointly by the House Committee on Energy & Commerce and the Senate Committee on Commerce, Science & Transportation, are the result of years of efforts by Congress to pass net neutrality legislation and recent developments involving the Federal Communications Commission's attempts to impose net neutrality rules the industry.

Net neutrality rules would disallow broadband service providers from discriminating against users and content by preventing them from slowing access to certain users and charging money to acesss certain content.

The FCC attempted to impose these rules after Comcast slowed service to certain users using the BitTorrent file-sharing service. In April, the United States Court of Appeals for the District of Columbia Circuit ruled against the FCC, stating that they did not have the regulatory authority to stop Comcast from blocking or slowing certain users of their broadband service.

Broadband providers have largely opposed the implementation of net neutrality rules, while Internet companies have largely backed them.

The committees are scheduled to hold another talk this Friday. The list of organizations and their representatives, provided by Tech Daily Dose, can be found below:

AT&T, Tim McKone Amazon, Emmett O'Keefe CDT, David Sohn Cisco, Jeff Campbell CompTel, Jerry James Consumers Union (CU), Joel Kelsey CTIA, Jot Carpenter CWA, Debbie Goldman Dish, David Goodfriend Free Press, Derek Turner Free State Foundation, Randolph May Google, Johanna Shelton ITI, Dean Garfield ITIF, Rob Atkinson Level 3, John Ryan MAP, Andy Schwartzman Microsoft, Paula Boyd NARUC, Brian O'Hara NASUCA, Brenda Pennington NCTA, James Assey NTCA, Tom Wacker OIC, Markham Erickson PFF, Dan Horowitz Phoenix Center, Larry Spiwak Public Knowledge, Ernesto Falcon Qwest, Melissa Newman RCA, Tim Donovan Sprint, Bill Barloon TIA, Grant Seiffert US Telecom, Walter McCormick Verizon, Peter Davidson

Former government officials hired to lobby as Congress looks to rewrite telecom law

As leaders in Congress announced a series of hearings this June to tackle huge telecommunications issues with a focus on the Internet, the top phone and cable organizations that control the majority of the access to the Internet have hired 276 former government officials to lobby both the Congress and the executive branch.

According to data obtained from lobbyist disclosure forms and the Center for Responsive Politics, seventy-two percent of the lobbyists hired by AT&T, Comcast, Time Warner Cable, Verizon, the National Cable & Telecommunications Association and the US Telecom Association have previous government experience. These organizations combined to spend $20.6 million lobbying the federal government in the first quarter of 2010.

Eighteen of the 276 revolving door lobbyists are former members of Congress. These include the powerful former senators John Breaux and Trent Lott. The Breaux Lott Leadership Group reported spending $150,000 lobbying on behalf of AT&T in the first quarter of 2010.

Both Breaux and Lott served in the leadership of their respective parties while in the Senate with Lott serving as Majority Leader. Lott also served on the Senate Committee on Commerce, Science & Transportation, the committee with jurisdiction over the telecommunications industry.

The eighteen former lawmakers include a heavy representation from the House Committee on Energy & Commerce, the House committee with telecommunications jurisdication. In 2010, the organizations hired former Energy & Commerce Committee members Jim Davis (AT&T), Jack Fields (Verizon), Ron Klink (Comcast), Chip Pickering (Comcast and National Cable and Television Association) and Al  Wynn (US Telecom Association).

The organizations are also hiring former lawmakers with previous clout in both the House and the Senate. Former Sen. Don Nickles, hired to lobby for Comcast, was the Republican Majority Whip from 1996 to 2001. Comcast also hired the former House Majority Whip William H. Gray.

Aside from Breaux and Lott, AT&T has hired two other lawmakers with strong resumes, former House Republican Conference Chair J.C. Watts and longtime California Democrat Vic Fazio.

The top telecom organizations are also hiring a number of lobbyists who previously worked on the Senate Committee on Commerce, Science & Transportation or the House Committee on Energy & Commerce. Fourteen lobbyists used to work on the House committee and thirteen previously worked at the Senate committee. In addition, the six organizations employ 26 former staffers of current members of the House committee and 22 former staffers of current members of the Senate committee.

These staffers include the former chief of staff, Lane Bailey, and deputy chief of staff, Patrick Robertson, to Sen. Jay Rockefeller, the chairman of the Senate Committee on Commerce, Science & Transportation. Robertson lobbies for Comcast and Bailey lobbies for the National Cable and Television Association.

The former counsel to Sen. John Kerry, the number two Democrat on the committee, Barry LaSala, is registered to lobby for Verizon.

Comcast and Time Warner Cable lead the way in hiring former government officials as lobbyists. Ninety percent of lobbyists hired by Time Warner Cable previously worked in government. Two Time Warner lobbyists served as congressmen and two others served as staffers to the Senate Committee on Commerce, Science & Transportation.

In first quarter lobbyists disclosure filings for 2010, eighty-eight percent of all lobbyists hired by Comcast had previous experience in government. While this percentage is slightly lower than Time Warner's, Comcast hired more than twice as many lobbyists with former government experience as Time Warner did—82 to 38. This includes five former members of Congress and four Energy & Commerce Committee staffers. Comcast, as it seeks government approval of its purchase of NBC Universal, has also hired six former officials from the Department of Justice.

Broadband regulation has been a major issue over the past few years as many Democrats, including President Obama, have called for the institution of net neutrality rules to govern broadband transmission. Net neutrality regulations would prevent broadband service providers from blocking or slowing transmission to certain sites, services and users.

In April, the Federal Communications Commission (FCC) was rebuffed by the United States Court of Appeals for the District of Columbia Circuit after trying to stop Comcast from slowing broadband access to users using the BitTorrent file-sharing service. The court ruled that the FCC did not have sufficient regulatory authority to require Comcast to provide equal access to all sites and services online.

In the wake of the court's decision, four committee and subcommittee chairmen announced a series of meetings with industry players to discuss a rewrite of the Telecommunications Act of 1996. The meetings will focus on the changes in telecommunications brought on by the revolution in Internet technologies over the past fifteen years. Much of that time is expected to be spent on the regulation of broadband routes.

A group of 74 Democratic lawmakers recently sent a letter to FCC Commissioner Julius Genachowski asking that the FCC not institute net neutrality rules without specific instruction from Congress. The 74 Democrats were comprised of a mix of Blue Dog Democrats, New Dems and members of both the Congressional Black Caucus (CBC) and the Congressional Hispanic Caucus (CHC).

At least, six of the letter signatorees—Reps. Joe Baca, Allen Boyd, Corrine Brown, Baron Hill, Eddie Bernice Johnson and Ciro Rodriquez—have former staffers lobbying for the top telecom organizations.

Telecom’s K Street Buy

Glenn Greenwald's latest column illustrates how telecom companies are attempting to buy amnesty from Congress through a multi-million dollar lobbying campaign. He is dead on by calling the effort "a perfect microcosm for how our government institutions work." 

By accessing the Center for Responsive Politics' lobbying database, Greenwald reports that in the first three months of this year, three telecom companies (AT&T, Verizon, Comcast) have spent a combined $13 million lobbying Congress.  If they maintain this pace throughout this year (and what's to stop them?), the three companies will spend $50 million. Nonprofit groups such as the American Civil Liberties Union and the Electronic Frontier Foundation are leading the fight against amnesty.  Greenwald links to a post by Kurt Opsahl, EFF senior staff attorney, on his organization's Deeplinks Blog.  Opsahl makes the point that "AT&T's spending for three months on lobbying alone is significantly more than the entire EFF budget for a whole year, from attorneys to sysadmins, pencils to bandwidth."Wanna place any bets on the outcome of this one?

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Republicans Demand Campaign Cash for Votes

It looks like congressional Republicans have seen MAPLight.org - the insanely useful money-for-votes tracker - and they like the idea. (Also see: National Association of Home Builders.) That idea being that money equals votes and votes equal money and therefore interests that they vote in favor of should kick back some campaign cash to reward their votes:

With the House Democrats’ refusal to grant retroactive immunity to phone companies — stalling the rewrite of the warrantless wiretapping program — GOP leadership aides are grumbling that their party isn’t getting more political money from the telecommunications industry.

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Why Did Verizon and AT&T Executives Suddenly Swoon for a Senator?

Ryan Singel of the Threat Level blog discovers a curious phenomenon: Between 2001 and 2006, high level executives of AT&T and Verizon contributed hardly any money at all to the campaigns of Sen. Jay Rockefeller, chairman of the Senate Select Committee on Intelligence. Starting in March 2007, they apparently discovered a real affinity for him, writing checks totaling some $48,500 to the West Virginia senator's campaign committee. Perhaps that's because Rockefeller had come around to their views:

Both companies are being sued for allegedly turning over billions of calling records to the government, while AT&T is also accused of letting the National Security Agency wiretap phone calls and its internet backbone. A federal judge in California allowed the suits regarding the eavesdropping to continue despite the government's attempt to have the suits thrown out on the grounds they will endanger national security. The 9th Circuit Court of Appeals reviewed that decision in August. The judges seemed reluctant to toss the cases, but have yet to issue a ruling. On Thursday evening, the Rockefeller-led Senate Intelligence Committee is marking up a bill to re-amend the nation's spy laws. While the text of the bill has not yet been released, the bill reportedly includes a way for the telecoms to escape the litigation against them.

The legal immunity for telecoms was included in the bill. Ellen Miller had previously noted the industry's clout with Congress--"the telecom industry has spent $24 million lobbying Congress so far this year, and almost $52 million lobbying in 2006. In the two-year 2006 cycle, the latest cycle on record, the industry gave over $6.4 million dollars in political contributions to the House and Senate." Always worth remembering that those millions end up in the coffers of particular politicians at particular times. By the way, all the numbers cited here and above come from the invaluable OpenSecrets from the Center for Responsive Politics--the ultimate scorecard for following politics.

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