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AT&T’s Cash Storm for House Speaker Paul Ryan’s 2017 Telecom Deregulation Agenda

Phillip Dampier August 18, 2016 Issues 3 Comments

fat cat attAT&T has gone over the top donating at least $70,000 to back Republican House Speaker Paul Ryan, more than the company has ever donated to anyone else.

It isn’t by coincidence.

According to Communications Daily (subscription req’d), one of Ryan’s top priorities for 2017 is a possible complete rewrite of the Telecommunications Act — the nation’s most important federal law governing telecommunications regulation and the operations of the Federal Communications Commission. Ryan and many of his fellow Republicans have been critical of the FCC’s growing interest in consumer protection and industry oversight.

Ryan’s efforts to push for further deregulation and policies that could lead to further industry consolidation could generate a windfall in the billions for AT&T. Past revisions of the Act have radically transformed the telecom landscape in the United States. President Bill Clinton’s signature on the 1996 Telecommunications Act opened the door to a tsunami of cross-media ownership and radio/TV station consolidation. Provisions in the ’96 Act were promoted as bolstering competition, but critics argued consolidation was favored over competition.

Howard Zinn summarized the effects of the ’96 law in his book A People’s History of the United States: “[it] enabled the handful of corporations dominating the airwaves to expand their power further. Mergers enabled tighter control of information.” Adding to the criticism, Latin American writer Eduardo Galeano echoed: “Never have so many been held incommunicado by so few.”

In 2000 Consumers Union blasted the ’96 Act as legislative bait and switch.

Ryan

Ryan

“It is evident that the Telecommunications Act of 1996 has failed to produce the consumer benefits policy makers promised because competition has failed to take hold across the communications industry,” the group said. “The fundamental problem is that the huge companies that dominate the telephone and cable TV industries prefer mergers and acquisitions to competition.”

AT&T is reportedly interested in access to lawmakers to lobby for telecom reforms that will allow it to switch off its legacy copper wire phone network in rural America, force certain consumers to wireless-only landline service, get rid of Net Neutrality, allow more wireless industry consolidation, ban municipal broadband, have a louder voice on privacy and cybersecurity regulation, access to wireless spectrum, and preferably a de-fanged FCC.

Public Citizen government affairs lobbyist Craig Holman told Communications Daily AT&T’s contributions are a “fundamental way of gaining access and influence to policymakers,” as part of Washington’s “pay-to-play system.”

The only entity giving Ryan more money than AT&T was the deregulation-obsessed Koch Industries, which gave $75,000.

Ryan’s current chief of staff is a close friend to Big Telecom. David Hoppe lobbied for AT&T, USTelecom and Verizon before being hired by Ryan. Hoppe’s influence appears to be significant after Ryan introduced “A Better Way,” the GOP’s platform for what they will do if they keep control of Congress and win the White House. The plan makes it clear there is unhappiness with the FCC under the leadership of chairman Thomas Wheeler, opposition to Title II reclassification of broadband — a change that opened the door to enforcing Net Neutrality, and a belief the FCC lacks transparency and is living in the regulatory past.

Holman worries that lobbyist spending in Washington, already a problem, has become insane after Citizens United eliminated limits on campaign contributions.

“The lids have been blown off… it’s breathtaking,” Holman told the newsletter.

Meet North Carolina’s Sen. Thom Tillis (R-ALEC/Time Warner Cable)

Tillis was honored in 2011 as ALEC's "Legislator of the Year" and received an undisclosed cash reward.

Tillis was honored in 2011 as ALEC’s “Legislator of the Year” and received an undisclosed cash reward.

Back when we first became aware of Republican member of the North Carolina legislature Thom Tillis around 2010, he was hard at work building his political future just as Republicans were poised to take control of the state legislature for the first time since the days of Reconstruction. Despite running unopposed in 2010, Tillis raised more money from cable and phone companies than any other lawmaker in the state, depositing $37,000 before knowing he would be the next Speaker of the North Carolina House of Representatives in January 2011. To celebrate, AT&T, Time Warner Cable, and Verizon each gave Tillis $1,000 just a few weeks before the swearing-in ceremony. It was money well spent, if you were a cable or phone company doing business in North Carolina.

Tillis left the legislature in 2015 to become the junior U.S. Senator from North Carolina. The telecom industry made sure to keep the campaign contributions flowing, if only to give their thanks for Tillis’ unwavering support for their agenda. Tillis doesn’t care much for his rural constituents still waiting for something better than dial-up internet access and as long as his campaign coffers remain bulging with corporate contributions, he doesn’t think he has much to fear from the state’s voters either. After all, he survived accusations from a resigning House Finance chairman that he had a secret business relationship with Time Warner Cable.

Raleigh’s The News & Observer felt it was their duty to mention Tillis in their editorial pages anyway, taking him to task for “cheering a loss for North Carolina consumers last week after a federal appeals court upheld a cable company protection law that he supported as state House speaker in 2011.”

The newspaper is talking about North Carolina’s infamous anti-public broadband bill that was literally constructed by lobbyists working for Time Warner Cable. The law effectively made it impossible for community broadband providers to bring their much-needed service to adjacent communities that have waited more than a decade for companies like Time Warner Cable, AT&T, CenturyLink and others to offer internet access in rural and underserved parts of the state.

Tillis personally helped shepherd the corporate protection bill, designed to shield incumbent cable and phone companies from community competition, through the state legislature, supporting it every step of the way. It would become law in 2011 and rural broadband in North Carolina hasn’t gotten any better since. In fact, it’s almost stagnant. But Tillis cannot say the same thing about his campaign bank accounts, which continue to bulge with corporate donations now in excess of $11 million.

An effort by the Federal Communications Commission to pre-empt the state law failed in a federal appeals court, much to the delight of Thom Tillis, something the newspaper calls an “insult” to North Carolinians looking for a better deal.

“Today’s ruling affirms the fact that unelected bureaucrats at the FCC completely overstepped their authority by attempting to deny states like North Carolina from setting their own laws to protect hard-working taxpayers and maintain the fairness of the free market,” Tillis said in a statement. Cough, cough.

The newspaper’s response:

Translation: Time Warner and other companies, thank goodness, will retain control of the market without having to worry about towns competing with them and thus will be able to charge people whatever the market will bear.

For Tillis to say the court ruling, which should be appealed, is a triumph for taxpayers is preposterous. It’s a setback. The “free market” he backs is one free of competition from municipal broadband services that offer a better product at a lower price.

AT&T’s Top Super Lobbyist Retiring This Fall; But Where Does Jim Cicconi Head Next?

Phillip Dampier August 11, 2016 AT&T, Public Policy & Gov't Comments Off on AT&T’s Top Super Lobbyist Retiring This Fall; But Where Does Jim Cicconi Head Next?
Cicconi

Cicconi

Jim Cicconi, AT&T’s well-known top lobbyist, has announced he intends to retire at the end of September, after 18 years of service to the phone company.

Cicconi’s role at AT&T began as general counsel and the executive vice president of law and government affairs at AT&T. Cicconi assumed his current role at a super-sized AT&T in 2005, after SBC (formerly Southwestern Bell) acquired AT&T and kept its name intact.

Few corporate entities spend as much on campaign contributions and other lobbying-related activities, including a starring role at the American Legislative Exchange Council (ALEC), than AT&T.

His replacement will be Bob Quinn, currently the senior vice president of federal regulatory at AT&T Services. Quinn will stay in Washington and report directly to AT&T CEO Randall Stephenson.

att“Jim is one of the best and brightest around when it comes to politics and public policy. He is respected by everyone, regardless of political party or viewpoint, as a big thinker, a master strategist and someone able to bridge divides to get things done,” Stephenson said, in a statement. “I greatly appreciate his leadership, wise counsel and countless contributions to AT&T over the years. He’s a great friend and we’ll miss him. I want to wish Jim and his wife, Trisha, all my best as they begin a new chapter in their lives.”

Where Cicconi heads next is anyone’s guess, but Beltway watchers note Cicconi endorsed Hillary Clinton for president. The Wall Street Journal reported Cicconi has joined several other Republican corporate executives signing up for Team Hillary this election cycle. Cicconi is voting Democratic this year, despite supporting every Republican presidential candidate since President Gerald Ford’s run against Jimmy Carter in 1976.

Could there be a role for Jim Cicconi in the Hillary Clinton administration? It would not be unprecedented. Cicconi served in the White House as deputy to the chief of staff for President George H. W. Bush for two years, and four years as special assistant to President Ronald Reagan.

Tennessee Waltz: State Legislature + Big Telecom Lobbyists = No Rural Broadband Expansion

lobbyist-cashEntrenched telecom industry lobbyists and a legislature enriched by their campaign contributions chose the interests of AT&T, Comcast, and Charter Communications over the broadband needs of rural Tennessee, killing a municipal broadband expansion bill already scaled down to little more than a demonstration project.

The Tennessee House Business and Utilities Subcommittee voted 5-3 Tuesday to end efforts to bring much-needed Internet access to rural Hamilton and Bradley counties, long ignored or underserved by the state’s dominant telecom companies. Rep. Kevin Brooks’ (R-Cleveland) original bill would have allowed Chattanooga-based EPB and other publicly owned utility services to expand fiber broadband and television service to other electric co-ops around the state.

Realizing his bill would be voted up or down by members of a committee that included one former AT&T executive and others receiving substantial campaign contributions from some of Tennessee’s largest phone and cable companies, he reduced the scale of his own bill to a simple demonstration project serving a limited number of customers.

The bill failed anyway, in a vote that took less than a minute.

The Chattanooga Times Free Press described the scene:

Rep. Marc Gravitt (R-East Ridge) voted for Brooks’ amendment and Rep. Patsy Hazlewood (R-Signal Mountain), a one-time AT&T executive, voting against it.

As Rep. Kent Calfee (R-Kingston), the subcommittee’s chairman, prepared to move on to the next bill, he suddenly realized the original bill remained before the panel.

“I’m sorry,” Calfee, who voted against the amendment, told Brooks as the Cleveland lawmaker turned to leave. “It’s the amendment [that failed]. Is there any need to vote on the bill?”

Brooks replied, “The amendment makes the bill. I’d love a vote on the bill.”

“Sorry about that,” Calfee said.

And that was that.

Residents and business people alike in northern Hamilton and portions of Bradley counties say they either have no service, lousy service or wireless service that makes it very expensive to upload and download documents for work and school.

EPB provides municipal power, broadband, television, and telephone service for residents in Chattanooga, Tennessee

EPB provides municipal power, broadband, television, and telephone service for residents in Chattanooga, Tenn.

“It’s a testament to the power of lobbying against this bill and not listening to our electorate,” Brooks told reporters. “The voice of the people today was not heard. And that’s unfortunate.”

Brooks’ bill did attract considerable interest – from telecom industry lobbyists who flooded the state legislative offices with a mission of killing it. The Tennessee newspaper said a “platoon of lobbyists and executives, including AT&T Tennessee President Joelle Phillips,” poured into the House hearing room or watched on nearby video screens to scrutinize the vote.

“I heard they hired 27 lawyers to fight,” Brooks said.

Rural Tennessee Republicans were disappointed by the outcome, which leaves substantial parts of their districts unwired for broadband.

“[This] was the perfect opportunity for EPB to be a pilot and to prove they can do what they say they can do,” said Rep. Dan Howell (R-Georgetown). “And if they can’t do it, it’s a perfect opportunity to put it to rest forever. They wouldn’t even let us do a pilot to prove that EPB can do what it claimed.”

Brooks

Brooks

Rep. Mike Carter (R-Ooltewah), also has a bill being held up in the legislature that would allow expansion of public broadband with the consent of citizen members of co-ops and elected leaders of the rural utilities.

Carter didn’t seem too surprised municipal broadband bills like his were being delayed or killed in the state legislature at the behest of AT&T and other companies.

“You just don’t go up against Goliath unless you have your sling and five stones. I just didn’t have my five stones today,” Carter said.

AT&T declared the bill was flawed, arguing in a statement it was not opposed to municipal broadband, so long as it was targeted only to customers unserved by any other provider. AT&T complained Brooks’ bill lacked language protecting them from unwanted competition.

“None of the bills considered … has any provision that would limit government expansion to unserved areas or even focus on those areas,” AT&T wrote.

Less than 24 hours after the vote ended Charter Communications had a special message for members of the legislature.

The cable operator sent invitations to Tennessee lawmakers giving them free airtime to star in their own “public service announcements” that will blanket the screens of Charter cable TV customers, giving the politicians free exposure.

Rep. Calfee's second largest contributor is AT&T.

Rep. Calfee’s second largest contributor is AT&T.

Charter’s director of government affairs for Tennessee was the executive extending the invitation.

“As a leading broadband communications provider and cable operator serving customers in Tennessee, Charter is committed to providing compelling public affairs programming and public service announcements,” said Nick Pavlis, Charter’s chief lobbyist in the state and a Knoxville city councilman. “We hope you will take advantage of this opportunity to speak directly to your constituents. Taping times are available on a first-come, first-served basis, so we encourage you to schedule yours as soon as possible.”

“Right now it would appear to those watching from the outside that big business won and big business is now reciprocating,” said Brooks.

Sen. Todd Gardenhire (R-Chattanooga) called the invitation inappropriate.

“Charter has done everything they could possibly do to deny rural Bradley broadband, Internet/content service,” Gardenshire told the Times Free Press.

“Well, my first inclination is to say I’m surprised, coming the day after they killed the broadband bill in committee,” added Howell. “[It is] kind of ironic now that they’re asking people to come forward and make public service announcements about how good their service is. I’m kind of stunned.”

Comcast Hosting $2,700-a-Plate Fundraiser for Hillary Clinton’s Presidential Bid

Clinton

Clinton

Comcast executive vice president David Cohen will host a $2,700-a-plate fundraiser for Democratic presidential candidate Hillary Clinton, to be held at his home in Philadelphia.

“Comcast NBCUniversal operates in 39 states and has 130,000 employees across the country,” said Comcast’s Sena Fitzmaurice earlier this spring, defending the company’s high-profile public policy lobbying efforts. “It is important for our customers, our employees and our shareholders that we participate in the political process. The majority of our PAC contributions are to the senators and members who represent our employees and customers.”

Those attending the June 26 event that manage to raise $27,000 from others qualify as co-hosts and win membership in the Clinton campaign’s exclusive “Hillstarters” program. Those donating at least $50,000 at the event get to attend a private reception with Mrs. Clinton and are automatically enrolled in the “Hillraisers” program for money-bundlers. While the ordinary voter will have to rely on newspapers and cable news, Hillstarters and Hillraisers get premium personal briefings from top campaign officials.

Cohen has been deeply ingrained in state and federal politics for years and is usually Comcast’s top point man dealing with Congress and other politicians. Cohen has a particular affinity working with Pennsylvania Democrats. He was chief of staff for former Pennsylvania Gov. Ed Rendell, who now earns a stipend from Comcast-owned MSNBC turning in regular appearances during the news channel’s political coverage.

According to the Center for Responsive Politics, Comcast donated almost $5 million in political campaign contributions last year, and spent more than $17 million on lobbying.

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