The inauguration of President Barack Obama for a second term in the White House is brought to you by generous financial contributions from AT&T, Microsoft, and a handful of big health care and pharmaceutical companies that all do business with the federal government.

AT&T, which donated generously to the Romney campaign, has been making amends with the administration remaining in office by underwriting the lavish festivities, despite earlier promises from the Obama Administration not to accept corporate money for the inauguration.

The telecom giant is among seven corporations that have found their way around federal laws that bar contractors from spending money to influence elections. No law stops them from writing big checks for inaugural events or political conventions (see here, here, here, and here for our earlier reports).

AT&T is among the most powerful special interests in Washington, with more than $14 million spent lobbying Congress and federal agencies like the FCC in just the first nine months of 2012, according to The Center for Responsive Politics’ website, Open Secrets.

AT&T handed out nearly $2 million to political action committees, parties, and secretive independent groups that run campaign ads without disclosing who pays for them. Candidates did not suffer for money either. Direct AT&T contributions totaling $3,297,096 were handed to members and would-be members of Congress, with the company heavily favoring Republicans.

Among those winning AT&T checks valued at $10,000 or more were 65 Republicans and 16 Democrats:

But the Money Party doesn’t end there. At least 49 members of the House and Senate that vote on legislation that directly affects AT&T’s bottom line also happen to be shareholders of the company:

Akin, Todd (R-MO)
Berkley, Shelley (D-NV)
Berman, Howard L (D-CA)
Bingaman, Jeff (D-NM)
Boehner, John (R-OH)
Bonner, Jo (R-AL)
Buchanan, Vernon (R-FL)
Burgess, Michael (R-TX)
Cassidy, Bill (R-LA)
Coats, Dan (R-IN)
Coble, Howard (R-NC)
Coburn, Tom (R-OK)
Cohen, Steve (D-TN)
Cole, Tom (R-OK)
Conaway, Mike (R-TX)
Conrad, Kent (D-ND)
Cooper, Jim (D-TN)
Doggett, Lloyd (D-TX)
Frelinghuysen, Rodney (R-NJ)
Gibbs, Bob (R-OH)
Hagan, Kay R (D-NC)
Hanna, Richard (R-NY)
Hutchison, Kay Bailey (R-TX)
Inhofe, James M (R-OK)
Isakson, Johnny (R-GA)
Johnson, Ron (R-WI)
Keating, Bill (D-MA)
Kerry, John (D-MA)
Kingston, Jack (R-GA)
Lance, Leonard (R-NJ)
Marchant, Kenny (R-TX)
McCarthy, Carolyn (D-NY)
McCaskill, Claire (D-MO)
McCaul, Michael (R-TX)
McKinley, David (R-WV)
Perlmutter, Edwin G (D-CO)
Peters, Gary (D-MI)
Renacci, Jim (R-OH)
Rogers, Hal (R-KY)
Sensenbrenner, F James Jr (R-WI)
Sessions, Pete (R-TX)
Smith, Lamar (R-TX)
Tipton, Scott (R-CO)
Upton, Fred (R-MI)
Vitter, David (R-LA)
Webb, James (D-VA)
Welch, Peter (D-VT)
Whitehouse, Sheldon (D-RI)
Whitfield, Ed (R-KY)

AT&T, which Open Secrets deems a “heavy hitter,” also benefits from Washington’s revolving door between public service and private sector lobbying. The group notes at least 63 out of 86 AT&T lobbyists have previously held government jobs, often at the agencies that oversee and regulate the company.

Public Citizen says it is disturbed by revelations companies like AT&T, Microsoft, and various pharmaceutical and health care interests like Centene and Genentech-Roche Pharmaceuticals have been allowed to contribute because all of them are in business with the federal government. AT&T has been awarded more than $101 million in federal contracts this fiscal year. Microsoft, which spent $5.7 million lobbying Washington has earned most of that back with $4.6 million in contracts with the Department of Homeland Security, the White House, and other federal agencies.

Almost none of the companies contacted by USA Today were willing to return calls or comment on the contributions. But Public Citizen did go on the record with the newspaper.

“Such donations are more troubling when they come from companies that have significant ongoing business with the federal government,” said Robert Weissman, the group’s president. “They will expect a very good hearing regarding any concerns, complaints or aspirations they might have.”

Corporations like AT&T may not be visible on television during the Republican and Democratic National Conventions, but they are throwing lavish parties and shaking hands behind the scenes. They’ll get their money’s worth later.

Behind the scenes at both the Republican and Democratic National Conventions, AT&T is throwing secretive parties, handing out “schwag bags,” and engaging in a legal form of influence peddling to buy themselves goodwill with the eventual election winners.

The Republican National Convention held a week ago in Tampa, Fla. featured lavish, invitation-only parties for politicians attending the convention, sponsored quietly by AT&T.

AT&T went over the top at the Republican event, handing out goodie bags with stuffed elephants emblazoned with the company’s logo, convention pins, and other handouts designed to keep their name front and center with GOP movers and shakers. Tampa Bay Online found the phone company rented out one upscale, popular Tampa restaurant for the entire week, throwing expensive private parties for various state delegations.

The restaurant: Jackson’s Bistro, which locked the doors and turned its back on local regulars for the benefit of GOP high-rollers.

The sponsor: After digging, it turns out the money to rent the upscale eatery came from AT&T, but you wouldn’t know it from the restaurant owner and staff, which have been told to keep their mouths shut about who was paying for supper.

The sneaky: AT&T discovered it could easily navigate around loophole-ridden campaign finance laws which limit corporate-sponsored dinners, but have nothing much to say about “cocktail events.” So as long as diners are standing up while they munch, shake hands, and chat, it’s a-okay.

The mission: To get face time and establish goodwill with political movers and shakers. Feed them, toss them some AT&T flair, and let them know you will be calling on them soon. But no need to overdo it: AT&T can do more talking later… after the politicians get elected and the time is right to get the company’s agenda into the law books.

Keenan Steiner from the non-profit Sunlight Foundation says “this is where the seeds are planted for laws to be written in Washington and in state capitols all over the country.” He notes how important it is for both political parties to have the overwhelming corporate presence that most Americans never understand exists at both conventions:

The significance is, they wouldn’t be here, able to have a good time the whole time, without these corporations. It’s a sort of starting process to become dependent on these corporations. And in Washington, lawmakers require the about 100 lobbyists, over 20 lobbying firms that AT&T hires—they require the work of these folks to get their work done. They’re a sort of legislative subsidy. And they also require these corporations to get re-elected. They want to stay in office, and you better be friends with the Chamber of Commerce, with the NRA, with the big nonprofit groups, the shadowy nonprofit groups, that you really better be friends with them, because, if not, they could drop a lot of money in your district, and they could make you lose an election.

The Sunlight Foundation is tracking corporate money used to break bread and hand out cocktails to your lawmakers.

The Sunlight Foundation reports AT&T has been tilting toward the GOP: The contributions from AT&T’s PAC, employees and their family members to federal candidates total about $3 million for the 2012 cycle, with about two-thirds of the money going to Republican federal officeholders and candidates. Sunlight’s Political Party Time website helps break down where AT&T spends even more money wining and dining legislators.

The Michigan Republican delegation threw its kickoff party there Saturday night, which featured top state lawmakers. Guests at the event went home with a stuffed elephant with an AT&T logo, the Detroit News reported. AT&T also sponsored an Illinois delegation event there on Tuesday afternoon. The Chicago Sun-Times reported that the telecom giant is sponsoring the event, and events lists showed that the Illinois delegates was at Jackson’s that afternoon.

At this week’s Democratic National Convention at the Time Warner Cable Arena in Charlotte, N.C., AT&T’s Death Star logo isn’t hard to spot either.

Amidst the goodie bags and handouts from Indian tribes trying to secure lucrative casino laws, big pharmaceutical companies asking for special favors, and giant energy companies was once again: AT&T.

AT&T’s stuffed GOP elephant. (Democracy Now)

On Tuesday, Rep. Debbie Wasserman Schultz (D-Fla.), Democratic national chairwoman, lectured the Republicans about the influence of special interest cash at the Republican National Convention. She referred to the GOP affair as “last week’s special-interest funded, corporate-infused, backroom-deals, smoke-filled room, invitation-only affair that was held in my home state.”

Only the breakfast event where she made the remarks was bought and paid for by AT&T.

AT&T does not splurge on upscale dining for Democrats though. The party that largely opposed AT&T’s merger deal with T-Mobile and often supports Net Neutrality is making due with a far-smaller AT&T hospitality suite serving scrambled eggs and bagels at the inelegant Airport DoubleTree Inn, quite a step down from the Caramelized Diver Scallops and Red Snapper on the menu for the corporate-friendly GOP.

AT&T’s pervasive presence at the Charlotte convention is also upsetting union workers, who turned out in large numbers at the convention. Unionized employees are still fighting with AT&T for a new contract. Already uncomfortable in a state where union workers are virtually an endangered species (to add insult, unions were booked in non-unionized hotels), many were unprepared to feast at AT&T’s breakfast buffet.

“This is one breakfast I won’t be eating,” William Henderson, the president of Local 1298 of the Communications Workers of America told the CT Mirror. “I won’t eat their stuff.”

Only he didn’t say “stuff.”

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/William Henderson Boycotts ATT Breakfast.flv[/flv]

William Henderson, president of a Connecticut chapter of the Communications Workers of America, stands outside leafleting an AT&T-sponsored breakfast in Charlotte, N.C., displaying a bumper sticker: “AT&T=Greed.”  (1 minute)

What should a good union worker with a gripe against AT&T do instead?  Leaflet the event, to the great potential embarrassment of AT&T officials and Connecticut Democratic lawmakers holding a union grievance brochure in one hand and an AT&T coffee cup in the other.

The room eventually quieted down to listen to former Connecticut Sen. Chris Dodd make remarks… on behalf of the Motion Picture Association of America, who he now represents.

Despite the Snapper-Gap between the two political parties, you cannot miss AT&T in Charlotte. Although convention spokespeople officially refer to corporate sponsors as “providers,” AT&T’s corporate logo is “provided” on every last lanyard handed to delegates and journalists, right next to Barack Obama’s campaign logo.

In case you forgot to charge your cell phone, two AT&T officials are permanently on hand at a table near the entrance to the event offering free battery boosters. But don’t worry, they’ll get paid back for that goodwill later.

[flv width=”448″ height=”276″]http://www.phillipdampier.com/video/Party Time RNC Cash.flv[/flv]

Democracy Now talks with Sunlight Foundation’s Keenan Steiner who shares the secrets of corporate cash at the Republican National Convention in Tampa.  (18 minutes)

Obama

In his State of the Union address last night to Congress, President Barack Obama complained that America’s digital infrastructure is inadequate to allow entrepreneurs and small businesses to successfully market their goods and services over the Internet.

“So much of America needs to be rebuilt. We’ve got crumbling roads and bridges, a power grid that wastes too much energy, an incomplete high-speed broadband network that prevents a small-business owner in rural America from selling her products all over the world.

During the Great Depression, America built the Hoover Dam and the Golden Gate Bridge. After World War II, we connected our states with a system of highways. Democratic and Republican administrations invested in great projects that benefited everybody, from the workers who built them to the businesses that still use them today.

In the next few weeks, I will sign an executive order clearing away the red tape that slows down too many construction projects. But you need to fund these projects. Take the money we’re no longer spending at war, use half of it to pay down our debt, and use the rest to do some nation-building right here at home.”

President Obama also touched on the problem of online piracy and imported counterfeit goods.  Last week, controversy over online piracy legislation including the Stop Online Piracy Act (SOPA) and the Protect IP Act (PIPA), brought consumer opposition to both, temporarily shelving the measures.  But the president acknowledged the problem was not going away.

“It’s not right when another country lets our movies, music, and software be pirated,” he said. “Tonight, I’m announcing the creation of a Trade Enforcement Unit (TEU) that will be charged with investigating unfair trading practices in countries like China. There will be more inspections to prevent counterfeit or unsafe goods from crossing our borders.”

Upton

Republicans fired back at the president over his rural broadband remarks, accusing the administration and the Federal Communications Commission of supporting pre-conditions on forthcoming spectrum auctions.  One House committee chairman tasked with broadband issues said the FCC was supporting policies that could reduce auction proceeds by reserving certain frequencies for up-and-coming wireless competitors or restrict how much spectrum a current market leader like AT&T or Verizon Wireless could acquire.

“The President said we have an incomplete high-speed broadband network, but his Federal Communications Commission is protecting its turf instead of joining us to free up airwaves to build the next generation communications networks,” said House Energy & Commerce Committee chairman Rep. Fred Upton (R-Mich.).

FCC chairman Julius Genachowski has had little regard for the House Republican-backed proposal that could potentially tie the FCC’s hands to set rules for spectrum auctions.  House Republicans also oppose setting aside certain spectrum for free, unlicensed high-power Wi-Fi use, preferring to auction as much spectrum as possible.

Earlier this month, Upton blasted the FCC chairman for opposing a “winner take all” auction approach:

“Bluster aside, it sounds like we have a federal agency more concerned about preserving its own power than offering serious improvements as we prepare to finalize this legislation. We worked with the FCC’s auction experts to give the agency the legitimate flexibility it needs to design the mechanics of the auction. It’s time to stop the FCC from engaging in political mischief that will hurt competition and steal money from the taxpayer’s coffers. Don’t take our word for it – look at the 2008 auction. The FCC imposed conditions on the C and D blocks that ultimately prevented the D-block from selling and pushed smaller carriers out of the auction. Taxpayers lost somewhere in the neighborhood of $5 billion, and spectrum remains sidelined. And speaking of protecting taxpayers, it’s time for the FCC and others to be honest about how taxpayers would be affected by their plans to give away valuable spectrum to favored constituencies. Our goal is to strike the right balance by keeping plenty of opportunity for unlicensed use without forcing taxpayers to forfeit any return on a resource that everyone agrees is worth billions.”

Sen. Kay Bailey Hutchison (R-Texas)

Republicans in the Senate are falling in line behind their colleagues in the House in voting to repeal the Federal Communications Commission’s anemic Net Neutrality rules.

Virtually every Republican in the Senate is expected to vote in support of a resolution introduced by outgoing Sen. Kay Bailey Hutchison (R-Tex.) that would strip the FCC of its authority to impose the new rules, which would prohibit Internet Service Providers from interfering in the free flow of Internet content across their networks.  Nearly every Democrat in the Senate is expected to oppose the Republican-backed measure in a vote expected later today.

Republicans serving at the FCC and in Congress claim the federal agency has no congressional mandate to oversee the Internet.  The agency itself under Chairman Julius Genachowski has refused to fully enable its authority by reclassifying the Internet as a telecommunications service.  Because the agency’s role to oversee the conduct of the country’s service providers is at issue, it has left the FCC in a grey area, with its authority challenged both politically and in the courts.

Sen. Jim DeMint (R-S.C.) claims Net Neutrality rules are completely unnecessary because providers have already promised they will not tamper with traffic and, in his words, “This is a another big government solution in search of a problem.”

Hutchison said enforcement of Net Neutrality would stall broadband Internet development.

“It will increase costs and freeze many of the innovations that have already occurred under our open Internet system,” she said in a statement.

Democrats like Sen. Maria Cantwell from Washington State think otherwise.

Cantwell pointed to Comcast’s secretive effort in 2007 to throttle the speeds of peer-to-peer file sharing traffic.  Comcast initially denied it was interfering with torrent traffic, until eventually admitting it was.  The FCC sought to fine Comcast for the practice, but the cable giant sued the FCC and won in federal court.  The judge in the case ruled the FCC didn’t appear to have the authority to regulate Internet traffic or impose the associated fine.

Cantwell believes sensible Net Neutrality policies will prevent further instances of provider interference.

“These providers think if [they] can control the pipe [they] can also control the flow,” Cantwell said. “Why allow telcos to run wild on the Internet charging consumers anything they want based on the fact that they have control of the switch?”

Reporters questioned Senate Commerce Chairman Jay Rockefeller about Net Neutrality, noting the measure opposing FCC involvement won support from several House Democrats.

Rockefeller pointed to the universal support for the anti-Net Neutrality measure on the Republican side as evidence this has become a partisan political issue.  Rockefeller hopes his Democratic colleagues in the Senate will see it the same way.

“There’s still 53 of us [Democrats], and if we stay together we’ll win,” Rockefeller said. “I think we’re going to prevail.”

Should the measure pass, President Barack Obama indicated he will veto it.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/C-SPAN Net Neutrality 11-9-11.flv[/flv]

C-SPAN talks with National Journal reporter Josh Smith about Net Neutrality’s prospects and the background issues surrounding Net Neutrality.  (3 minutes)

At least seven states including New York, California, Illinois, Pennsylvania, Washington and Ohio have announced they are joining the Justice Department lawsuit to stop AT&T’s attempted buyout of T-Mobile USA.

The merger has been heavily criticized by consumer groups for its potential to reduce wireless competition and stifle the marketplace with just two dominant carriers — AT&T and Verizon Mobile.  Now several Attorneys General have joined the voices of opposition to the merger.

“This proposed merger would stifle competition in markets that are crucial to New York’s consumers and businesses, while reducing access to low-cost options and the newest broadband-based technologies,” New York Attorney General Eric T. Schneiderman said in a statement.

Washington State Attorney General Rob McKenna said the deal would “result in less competition, fewer choices and higher prices for Washington state consumers.”

“The proposed merger would create highly concentrated markets in Massachusetts and could lead to higher prices and poorer service.” Massachusetts Attorney General Martha Coakley said.

Illinois Attorney General Lisa Madigan said the deal would “substantially lessen competition for mobile wireless telecommunications services in Illinois and across the United States.”

“Blocking this acquisition protects consumers and businesses against fewer choices, higher prices, less innovation, and lower quality service,” Madigan added.

“Our review of the proposed merger between AT&T and T-Mobile has led me to conclude that it would hinder competition and reduce consumer choice,” California Attorney General Kamala D. Harris said. “Enforcement of antitrust law is the responsibility of the Attorney General and is vital to protecting our state’s economic strength and tradition of innovation for the betterment of all Californians.”

Shuler

Although the level of opposition to the transaction continues to grow, AT&T itself claims to remain confident it can push the merger through.

“It is not unusual for state attorneys general to participate in DOJ merger review proceedings or court filings,” AT&T representative Michael Balmoris said.

Several Democratic lawmakers, most of whom receive substantial campaign contributions from AT&T, would seem to underline the company has the support of at least some in Congress.

Rep. Heath Shuler (D-North Carolina), joined 14 Democratic co-signers in a letter sent Thursday to President Barack Obama encouraging him to support the merger deal.

“By settling the proposed merger of AT&T and T-Mobile USA we can put thousands of Americans back to work and promote economic development across the country,” Shuler said. “I urge the President to strongly consider the vast benefits this merger will have on job creation and the economy and quickly resolve any concerns the Administration may have with the proposal.”

Among the co-signers: Rep. John Barrow, Rep. Mike Ross, Rep. Dan Boren, Rep. Dennis Cardoza, Rep. Joe Baca, Rep. Leonard Boswell, Rep. Ben Chandler, Rep. Jim Costa, Rep. Henry Cuellar, Rep. Mike McIntyre, Rep. Mike Michaud, Rep. Collin Peterson, Rep. Loretta Sanchez, and Rep. David Scott.

AT&T currently also has support for their deal from 11 states, many which receive very little service directly from T-Mobile: Alabama, Arkansas, Georgia, Kentucky, Michigan, Mississippi, North Dakota, South Dakota, Utah, West Virginia and Wyoming.

A court hearing is scheduled for Sept. 21 to discuss settlement options.

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/KFOR Oklahoma City ATT T Mobile Merger 9-19-11.mp4[/flv]

KFOR in Oklahoma City explores the latest developments in the T-Mobile/AT&T merger case.  (2 minutes)