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Comcast Hires Everyone for D.C. Lobbying Blitzkrieg for Merger Deal With Time Warner Cable

Phillip Dampier May 22, 2014 Astroturf, Comcast/Xfinity, Competition, Public Policy & Gov't Comments Off on Comcast Hires Everyone for D.C. Lobbying Blitzkrieg for Merger Deal With Time Warner Cable
Comcast has at least 40 lobbying firms working on its merger deal with Time Warner Cable.

Comcast has at least 40 lobbying firms working on its merger deal with Time Warner Cable.

It’s shock and awe time in D.C. as Comcast pulls out all the stops to ram its $45 billion deal with Time Warner Cable down Washington’s throat.

The Hill reports Comcast is assembling one of the biggest lobbying teams ever seen inside the beltway, hiring at least seven additional lobbying firms on top of the 33 it already retains. Their mission: to pressure legislators and overwhelm regulators to accept the merger deal and ignore the critics.

The lobbying firms are loaded to the rafters with D.C.’s frequent revolving-door travelers — former legislators, staffers, regulators and their aides that worked in the Clinton and Bush Administrations who now work on behalf of the companies many used to oversee.

On Comcast’s generous payroll: former aides for the House Energy and Commerce Committee and the House and Senate Judiciary committees, in addition to the Justice Department and the Federal Communications Commission — precisely the agencies that will review the merger for anti-trust concerns.

“If you’ve worked on the committees, or if you’ve worked in an agency overseeing a transaction like this, you’ve got knowledge about how the process works and credibility with the staff — it’s that simple,” one lobbyist told the newspaper.

A quick review of some of the players from The Hill:

Joseph Gibson of The Gibson Group, which started lobbying for Comcast in April, has held several prominent roles with the House Judiciary Committee, whose members grilled Comcast executives for four hours earlier this month. Gibson also worked at the Justice Department, including a stint advising the assistant attorney general for the Antitrust Division.

Louis Dupart, a veteran of Capitol Hill, the Defense Department and the CIA who’s now at the Normandy Group. He says on his firm’s website that he “has had multiple successes at the Department of Justice and the Federal Trade Commission on major anti-trust reviews for DuPont, Google, People Soft and other companies.”

The Normandy Group signed Comcast as a client last month. Another lobbyist at the firm, Krista Stark, served as legislative director to Rep. James Sensenbrenner Jr. (R-Wis.) when he was chairman of the House Judiciary Committee.

Marc Lampkin, the managing partner of Brownstein Hyatt Farber & Schreck’s Washington office, has ties to Speaker John Boehner (R-Ohio) and bills himself as “a close confidante to a number of key Republican members of the both the House and Senate.”

Justin Gray of Gray Global Advisors, another Comcast hire, has ties to Democrats as a member of the Congressional Black Caucus Foundation’s Corporate Advisory Council. The biography on his firm’s website credits him with leading “engagement strategies with respect to antitrust and FCC approvals of mergers and other consolidation transactions on behalf of leading satellite radio and cable providers.”

comcast twcLobbyists like Gray used astroturf tactics to mobilize various unaffiliated non-profit groups to write glowing letters in support of consolidating Sirius and XM Radio, usually in return for generous contributions. It is likely to be more of the same with this merger.

In 2011, Comcast spent $19 million on its lobbying effort to win approval of its buyout of NBCUniversal. Last year, it almost spent the most on lobbying of any corporation, coming in second only to defense contractor Northrop Grumman.

Watchdog groups are repulsed by the blatant use of recently-resigned FCC personnel and former legislative aides that left positions working for the public interest to take lucrative jobs with Comcast’s lobbying teams.

“Though Comcast is not alone in its revolving door lobby strategy, what is unprecedented is the gravity of the revolving door abuse now being employed by a small handful of very wealthy communications firms,” said Craig Holman, government affairs lobbyist at Public Citizen.

Holman found 82 percent of Comcast’s lobbying squad in 2014 had worked in the public sector before going to K Street.

Consumers and customers don’t have a well-funded lobbying team fighting for their interests.

Verizon’s N.J. Astroturfing Revisited: More ‘Phoney’ Pro-Verizon E-Mails Revealed

astroturf200New Jersey’s Board of Public Utilities received more than 460 identical e-mails urging the regulator to approve Verizon’s proposed settlement permitting it to renege on broadband expansion commitments that would have brought high-speed Internet to every citizen in the state that wanted it.

More than a few of those e-mails were submitted with fake e-mail addresses or without the knowledge of the alleged senders. An Ars Technica piece this week confirmed Stop the Cap!’s own findings of the astroturf effort and found more customers denying they ever submitted comments to the BPU about the settlement.

“I am a customer only to Verizon and I was not contacted by them to submit anything,” one person told Ars. “If they did, I would’ve slammed them. They are gougers. If AT&T was where I lived, I would switch in a heart beat.”

When this customer was shown the e-mail he allegedly sent to state officials, he said, “That would mean someone did it on my behalf. I can assure you that I did not send that response.”

In other cases, Ars discovered some of Verizon’s vendors were misrepresenting the nature of the settlement and asking people they worked with or knew to sign the petition as part of a contest.

Verizon-logo“I hope you are doing well. I have a favor to ask,” one e-mail read. “I’m working on a project for our client, Verizon, and they need some signatures to an online petition. Verizon wants to expand its offerings in New Jersey, but needs approval from the state. Higher-speed Internet, more FiOS, etc.”

“All you need to do is enter your e-mail and zip code,” the message continued. “I appreciate it. We’re in a contest with another vendor to see how many people we can get to sign it. Just let me know yea or nay, so I can get the credit for it.”

Of course signing the petition would result in the exact opposite of more FiOS deployment and higher speed Internet access.

That online petition turned out to be hosted on the website of the astroturf group 60+ Association, which is funded by various corporations and works with D.C. lobbying firms who help corporate clients launch “social media” campaigns that appear to be spontaneous grassroots movements. The group only supports Republican candidates for office and is normally preoccupied with attacking health care reform with the major financial contributions it receives from the pharmaceutical industry. With Obamacare more or less settled, the group now also advocates for telecom companies without bothering to disclose any financial arrangement.

60plus

One of the lobbying firms associated with 60+ Association — Bonner & Associates, was implicated in a 2009 scandal when they were caught sending forged letters to members of Congress claiming to be from local minority and senior citizen groups. The lobbying firm quietly changed its name to Advocacy to Win (A2W), where it is still accepting clients that want to launch astroturfing campaigns.

One banking trade association gave glowing reviews for their work:

“You ran a well-honed operation recruiting, educating, and mobilizing grasstops/community leaders,” said the president of a ‘leading financial services trade association.’ The grasstops supporters you mobilized were well educated on the issue, advocated convincing arguments for our side, and most importantly were strongly vocal with stories of the local impact this issue would have on their customers/members of their organization.”

Big Telecom Sock Puppetry Too Often Comes Without Full Disclosure

Larry Irving Old Job: administrator of the National Telecommunications and Information Administration (NTIA). New Job: Shill for Big Telecom companies

Larry Irving
Old Job: administrator of the National Telecommunications and Information Administration (NTIA).
New Job: Shill for Big Telecom companies

Community-owned, publicly funded broadband networks are under renewed attack in various Op-Ed and guest editorial pieces popping up in newspapers around the country, often written by those with undisclosed industry connections as part of a larger effort to ban the networks.

The Hill in Washington, D.C. was one of the latest to go to print, publishing a hit piece attacking the “growing fascination with publicly funded broadband networks” and suggesting only the “private-sector” could deliver the best telecommunications networks.

In his piece, author Larry Irving stated, “the specter of governments operating broadband networks in competition with the private sector, or of state or local governments serving as both regulators and owners of competing broadband networks, could stifle investment or reduce private-sector access to capital.”

Irving added that “with the exception of bringing or improving service to remote geographies, I don’t see many problems that government-owned or -operated broadband networks will solve.”

Here is how The Hill described Irving: “CEO of the Irving Group and served for almost seven years as assistant secretary of Commerce for Communications and Information and administrator of the National Telecommunications and Information Administration (NTIA).”

That is like describing Oscar Pistorius as a man embroiled in marital difficulties. It doesn’t begin to tell the whole story. Media Matters does:

Irving is more connected with the telecom industry than America is with fiber broadband. Irving is the founding co-chairman of the Internet Innovation Alliance (IIA), an IRS 501(c)(6) telecommunications trade association whose purpose is to “prevent the creation of burdensome regulations,” according to documents filed with the IRS. IIA reportedly receives financial support from AT&T and includes members such as Alcatel-Lucent and TechAmerica, which lobbies on behalf of technology companies. The group’s 2011 IRS tax form — the most recent one available — states it received over $18 million in revenue.

the-hill-logoWhile The Hill noted that Irving heads the Irving Group, it did not disclose that the firm provides “strategic advice and assistance to international telecommunications and information technology companies.”

The Hill op-ed comes after the U.S. Government Accountability Office (GAO), the investigative arm of Congress, released a February 2014 report concluding that federally funded and municipal networks were faster and cheaper than comparable networks. Specifically, the GAO found:

  • “federally funded or municipal networks offered higher top speeds than other networks in the same community and networks in nearby communities.”
  • “prices charged by federally funded and municipal networks were slightly lower than the comparison networks’ prices for similar speeds.”
  • “according to small business owners, the improvements to broadband service have helped the businesses improve efficiency and streamline operations. Small businesses that use the services of these networks reported a greater ability to use bandwidth-intensive applications for inventory management, videoconferencing, and teleworking, among other things.”

Most of the industry’s initiatives against community broadband come through a close association with the American Legislative Exchange Council (ALEC) — a corporate funded group that provides ghostwritten bills to mostly Republican legislators for introduction in state legislatures across the country. One such bill virtually bans community broadband.

alec-logo-sm

Sponsored by corporate interests

ALEC is now under fire again for its annual “Rich States, Poor States” report, released this week. The publication, whose lead author is economist Arthur Laffer, is sold to the press as an objective, academic measure of state economic performance, but should instead be viewed more as a lobby scorecard ranking states on the adoption of extreme ALEC policies that have little or nothing to do with economic outcomes.

Internal documents obtained by The Guardian expose a close financial connection between the Koch Brothers and ALEC. It turns out the Koch family funds the production of “Rich States, Poor States,” which this year put deregulation friendly Utah at the top and ALEC-skeptical New York at the bottom. The report claims the state of Mississippi outperformed New York, a surprising and entirely false assertion. But getting ALEC model bills signed into law in Mississippi is far easier than getting them past New York’s Assembly and Senate.

Wisconsin’s Governor Scott Walker is a former ALEC member who signed 19 ALEC bills into law in his first two years in office, slashed government spending and controversially eviscerated state unions prompting mass protests in February 2011. Despite the fact Wisconsin still has one of the worst job creation records in the country, ranking 32nd nationally or 9 out of 10 in upper Midwest, ALEC has been kind to Wisconsin in its economic report, ranking the state 17th for its economic outlook.

Any state that permits publicly funded broadband networks to exist is in obvious economic peril in the eyes of ALEC (and member corporations including AT&T, Comcast, and Time Warner Cable.)

sockpuppetThe Center for Media and Democracy’s PR Watch suggests ALEC’s agenda for Big Telecom is to make life easy for your provider and more expensive for you. ALEC has three model telecom bills it pushes on state legislatures:

The ALEC “Municipal Telecommunications Private Industry Safeguards Act” is a “model” bill for states to thwart local efforts to create public broadband access. Promoted under the guise of “fair competition” and “leveling the playing field,” this big telecom-supported bill imposes regulations on community-run broadband that they would never tolerate themselves. Iterations of this anti-municipal broadband bill passed in 19 states to stop local governments in communities like Wilson, North Carolina from wiring their communities with fiber.

The ALEC “Cable and Video Competition Act” attacks municipal cable franchises and frees cable companies from oversight. The bill creates a single state franchising authority and releases the companies from requirements to wire the entire state, and allows companies to decide when — or if — to build out cable, and through that cable, to provide adequate internet access. In North Carolina, for example, the bill passed under the name “the Video Service Competition Act” in 2006 with the promise that deregulation would result in greater investment by cable broadband providers; but instead, the state is tied for last place in terms of the number of homes with a basic broadband connection. An estimated twenty-three states have enacted statewide video franchising laws in recent years. Additionally, bills like this one harm public access television stations, since cable companies no longer negotiate with individual jurisdictions and pay the franchising fees that fund public, educational, and government access television.

The ALEC “Broadband and Telecommunications Deployment Act” would give telecommunications providers access to all public rights-of-way, and make it harder for local communities to charge franchising fees or otherwise regulate providers. Cable and internet is largely wired via publicly owned “rights of way” — like under sidewalks or along utility poles — and traditionally, telecom providers profiting from the use of these public goods would be granted access in exchange for some sort of accountability, such as paying for access or providing services on a non-discriminatory basis to all customers willing to pay. This bill would largely eliminate local control over public rights-of-way in favor of telecommunications providers.

Time Warner Cable Adds Free Calls to Mexico to its Nationwide Calling Plan; Sock Puppets Approve

Phillip Dampier March 3, 2014 Astroturf, Consumer News, Editorial & Site News Comments Off on Time Warner Cable Adds Free Calls to Mexico to its Nationwide Calling Plan; Sock Puppets Approve

MexicoPhoneTime Warner Cable phone customers with Unlimited Home Phone calling can now place toll-free calls to Mexico, the company announced today.

Most Time Warner Cable phone customers are already signed up with the Unlimited Home Phone plan, which provides free-calling to the U.S., Canada, Puerto Rico, Guam, and the U.S. Virgin Islands.

“The expansion of our most popular Phone plan to include unlimited calls to Mexico will bring huge value to the millions of TWC Home Phone users who have friends and family in Mexico,” said Jeff Lindsay, general manager for Home Phone at TWC. “We’re excited to offer truly unlimited calling to Mexico as part of our main calling plan.”

Customers can make unlimited toll-free calls to both Mexican landline and cellular numbers.

The cable company also gave room in its press release to congratulatory comments from the League of United Latin American Citizens (LULAC) and The National Hispanic Caucus of State Legislators (NHCSL) — two Latino organizations that receive financial support from large cable and phone companies and often appeal to regulators on behalf of the telecom industry.

LULAC counts Time Warner Cable as a member of its Corporate Alliance and partner organization.

The NHCSL receives support and assistance from a variety of cable and phone companies including Comcast, Verizon, and AT&T and regularly appeals to federal regulators advocating the public policy agenda of Big Telecom companies.

[flv]http://www.phillipdampier.com/video/TWC TWC Free Calls to Mexico 3-3-14.mp4[/flv]

Ray de los Santos, director of LULAC in Dallas delivered this jumbled word salad about Time Warner Cable’s addition of free-calling to Mexico. (0:36)

More Hackery on Broadband Regulation from the AT&T-Funded Progressive Policy Institute

Phillip "Follow the Money" Dampier

Phillip “Follow the Money” Dampier

“In the 1990s, U.S. policymakers faced critical choices about who should build the Internet, how it should be governed, and to what extent it should be regulated and taxed. For the most part, they chose wisely to open a regulated telecommunications market to competition, stimulate private investment in broadband and digital technologies, and democratize access.” — Will Marshall, guest columnist

Is competition in Internet access robust enough for you? Has your provider been sufficiently stimulated to invest in the latest broadband technologies to keep America at the top of broadband speed and availability rankings? Is Net Neutrality the law of the land or the latest victim of a Verizon lawsuit to overturn the concept of democratizing access to online content?

I’m not certain what country Will Marshall lives in, but for most Americans, Internet access is provided by a duopoly of providers that must be dragged kicking and screaming to upgrade their networks without jacking up prices and limiting usage.

Marshall is president and founder of the Progressive Policy Institute, a so-called “third way” group inspired by centrist Democrats led by President Bill Clinton in the 1990s. Unlike traditional liberals suspicious of corporate agendas, these Democrats were friendly to big business and welcomed the largess of corporate cash to keep them competitive in election races. It was under this atmosphere that Clinton signed the bought-and-paid-for 1996 Telecom Act, ghostwritten by lobbyists for big broadcasters, phone and cable companies, and other big media interests. Long on rhetoric about self-governing, free market competition but short on specifics, the ’96 law transformed the media landscape in ways that still impact us today.

ppiMedia ownership laws were relaxed, allowing massive buyouts of radio stations under a handful of giant corporations like Clear Channel, which promptly dispensed with large numbers of employees that provided locally produced programming. In their place, we now get cookie-cutter radio that sounds the same from Maine to Oregon. Television stations eagerly began lobbying for a similar framework for relaxing ownership limits in their business. Phone companies won their own freedoms from regulation, including largely toothless broadband regulations that allowed Internet providers to declare victory regardless of how good or bad broadband has gotten in the United States.

Marshall’s views appeared in a guest column this week in The Orlando Sentinel, which is open to publishing opinion pieces from writers hailing from Washington, D.C., without bothering to offer readers with some full disclosure.

Marshall

Marshall

While Marshall’s opinions may be his own, readers should be aware that PPI would likely not exist without its corporate sponsors — among them AT&T, hardly a disinterested player in the telecommunications policy debate.

Marshall’s column suggests competition is doing a great job at keeping prices low and allows you – the consumer – to decide which technologies and services thrive. There must be another reason my Time Warner Cable bill keeps increasing and my choice for broadband technology — fiber optics — is nowhere in sight. I don’t have a choice of Verizon FiOS, in part because phone and cable companies maintain fiefdoms where other phone and cable companies don’t dare to tread. That leaves me with one other option: Frontier Communications, which is still encouraging me to sign up for their 3.1Mbps DSL.

“The broadband Internet also is a powerful magnet for private investment,” Marshall writes. “In 2013, telecom and tech companies topped PPI’s ranking of the companies investing the most in the U.S. economy. And America is moving at warp speed toward the ‘Internet of Everything,’ which promises to spread the productivity-raising potential of digital technology across the entire economy.”

Nothing about AT&T or the cable companies is about “warp speed.” In reality, AT&T and Verizon plan to pour their enormous profits into corporate set-asides to repurchase their own stock, pay dividends to shareholders, and continue to richly compensate their executives. It’s good to know that PPI offers rankings that place telecom companies on top. Unfortunately, those without a financial connection to AT&T are less optimistic. The U.S. continues its long slide away from broadband leadership as even developing countries in the former Eastern Bloc race ahead of us. Verizon’s biggest single investment of 2013 wasn’t in the U.S. economy — it was to spend $130 billion to buyout U.K.-based Vodafone’s 45% ownership interest in Verizon Wireless. Verizon’s customers get stalled FiOS expansion, Cadillac-priced wireless service, and a plan to ditch rural landlines and push those customers to cell service instead.

AT&T financially supports the Progressive Policy Institute

AT&T financially supports the Progressive Policy Institute

“A recent federal court decision regarding the FCC’s Open Internet Order has prompted pro-regulatory advocates from the ’90s to demand a rewrite of the legal framework that allowed today’s Internet to flourish,” Marshall writes in a section that also includes insidious NSA wiretapping and Internet censorship in Russia and China.

Marshall’s AT&T public policy agenda is showing.

Net Neutrality proponents don’t advocate an open Internet for no reason. It was AT&T’s former CEO Ed Whitacre that threw down the gauntlet declaring Google and other content providers would not be allowed to use AT&T’s pipes for free. AT&T has since patented technology that will allow it to discriminate in favor of preferred web traffic while artificially slowing down content it doesn’t like on its network.

“Pro-regulatory advocates” are not the ones advocating change — it is AT&T, Verizon, and Comcast, among others, that want to monetize Internet usage and web traffic for even higher profits. Net Neutrality as law protects the Internet experience Marshall celebrates. He just can’t see past AT&T’s money to realize that.

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