A portion of your cable bill pays for much more than programming, with millions diverted to Koch Brothers-backed astroturf groups, tea party candidates, fat paychecks for former public officials taking a trip through D.C.’s revolving door, and generous allowances for travel  expenses racked up by high-flying industry lobbyists.

The Center for Public Integrity took a trip through the 2012 tax return of America’s top cable trade group: the National Cable & Telecommunications Association (NCTA), which collected $60 million last year in membership dues from America’s top cable operators, who in turn were reimbursed by you when paying your monthly cable bill. They needed a shower when the journey was over.

NCTA president and CEO Michael K. Powell, the former chairman of the Federal Communications Commission during President George W. Bush’s first term, was well compensated in his new role representing the same cable industry he used to barely oversee, taking home more than $3 million in pay last year. Eight other employees, including NCTA’s executive vice-president, collectively cleared over a million dollars in salary according to the groups’ Form 990 filed with the Internal Revenue Service.

The revolving door at NCTA headquarters is kept well-greased, with 78 out of 89 federal-level NCTA lobbyists formerly working in government jobs representing the American people. Now they work for the interests of Comcast, Time Warner Cable, and other large operators.

Collectively, the NCTA spent $19 million on lobbying activities last year, much of it bankrolling “dark money” groups that refuse to disclose their donors and consider it their life mission to defeat President Barack Obama and blockade Democrats in Congress — the ones still most likely to demand more oversight and regulation of the free-spending cable industry. Among the groups receiving cable’s cash:

Americans for Prosperity, which received $50,000, spent $33.5 million opposing Obama during the 2012 election cycle, according to the Center for Responsive Politics, a nonpartisan group that tracks campaign spending. Americans for Prosperity often supports Tea Party causes and candidates and is the main political arm of billionaire industrialists Charles and David Koch. As the Center reported Thursday, the group spent a staggering $122 million overall in 2012. Americans for Prosperity is also actively involved in blocking community-owned broadband projects and advocates passing laws forbidding communities getting into the broadband business if a cable company got there first. Now you know why.

Phil Kerpen with Glenn Beck

Americans for Tax Reform, which received $50,000, spent $15.8 million on the 2012 federal election, according to the Center for Responsive Politics. The group’s president and founder, Grover Norquist, is famous for his Taxpayer Protection Pledge, by which legislators and candidates promise to oppose all tax increases. The cable industry is also an advocate of tax forgiveness policies that would let cable operators repatriate the cash they stashed overseas, avoiding the same taxman they snuck around opening overseas bank accounts.

American Commitment, which received $10,000, spent $1.9 million on the 2012 federal election to advocate for and against political candidates — mostly to help U.S. Sen. Jeff Flake (R-Ariz.) defeat Democrat Richard Carmona. American Commitment also spent some of its money to oppose Sen. Tim Kaine (D-Va.) and Obama. American Commitment Founder and President Phil Kerpen is the former policy and legislative strategist at Americans for Prosperity and previously worked at Club for Growth, another group that doesn’t disclose its donors. Kerpen joined Glenn Beck on his program in 2009 to nod agreement when Beck hopped aboard the crazy train suggesting the Obama Administration’s support for Net Neutrality represented a Marxist-Maoist takeover of the Internet. Silly Beck, doesn’t he realize AT&T already called dibs?

The Center for Individual Freedom, which received $20,000, has been actively fighting against proposals for increased disclosure of donors to politically active nonprofits. It spent $1.8 million during the 2012 election cycle mostly opposing Democratic congressmen Steven Horsford, Bill Owens and Dan Maffei, all from New York.

‘Your money is always good here, whether it comes from AT&T or the cable industry.’ — LULAC

The cable industry also bankrolls a number of our “favorite” sock puppet groups that reflexively support cable’s cause even when straying far beyond their alleged core missions and constituencies the groups claim to represent. Among those on cable’s payroll, sharing $5.8 million in “grant” funding, are some very familiar names to any regular Stop the Cap! reader:

• The Congressional Black Caucus Foundation
• The National Association for the Advancement of Colored People
• LULAC
• The National Gay & Lesbian Chamber of Commerce
• The National Urban League

The largest grant – $2 million, went to the industry mouthpiece Broadband for America, the largest telecom industry astroturf group in the United States, featuring honorary Democratic co-chairman Harold Ford, Jr., who now spends most of his life in MSNBC green rooms after being bounced from office in a failed Senate bid in 2006.

Ford landed on his feet after losing the election, fleeing Tennessee for big money New York, peddling his inside the beltway influence to Merrill Lynch, winning him the position of vice chairman and senior policy adviser, until Merrill Lynch nearly collapsed in the Great Recession and was bailed out by U.S. taxpayers. Ford kept his $2 million annual salary and bonuses, but it wasn’t enough.

He quickly upgraded to a senior managing director at Wall Street firm Morgan Stanley, supplying him with enough cash to buy a $3 million co-op in a tony Manhattan neighborhood.

Broadband for America, brought to you by America’s Big Telecom companies.

From his perch in New York City, Ford pretends to know what is best for the little people across America suffering from no broadband, rationed access, or overpriced service.

His answer: buy it, if you can, from your cable company.

Ford’s co-chair at BfA is former Republican Sen. John Sununu who, by the way, also happens to sit on the board of Time Warner Cable. Need we say more?

There is no reason NCTA lobbyists shouldn’t travel in style when performing their advocacy efforts either. In 2012, they ran up nearly $800,000 in travel expenses.

Unsurprisingly, nobody involved was willing to comment.

House Energy & Commerce Committee

The House Energy and Commerce Committee plans to hold a hearing Friday to review the Federal Communications Commission’s actions regarding the now-bankrupt wireless firm LightSquared, which proposed a nationwide 4G network later found to create major interference problems for GPS users.

At issue are the circumstances surrounding the conditional waiver the company received from the FCC to move forward with its network in 2011. Some Republicans are questioning whether the FCC rushed the approval process without independently assessing whether LightSquared would interfere with GPS services located on nearby frequencies.

The hearing, requested by the Republican majority, will explore whether the FCC skipped its own procedures and ignored policy to hurry approval.

Sen. Charles Grassley (R-Iowa) has raised questions about the FCC and LightSquared owner Philip Falcone, who has donated nearly $100,000 to the Democratic Party.

“Without transparency, and with media coverage of political connections in this case, there’s no way to know whether the agency is trying to help friends in need or really looking out for the public’s interest,” Grassley said last September after unsuccessfully trying to get the FCC to pass along documents regarding the venture.

The Center for Public Integrity found numerous political connections between LightSquared and the Democratic Party:

• Several major Democratic campaign contributors and longtime Obama supporters have held investments in the company and its affiliates during its tangled decade of existence. They include Obama’s good friend and political donor Donald Gips, his former White House personnel chief, who now serves as U.S. ambassador to South Africa. Records show that Gips maintained an interest, worth as much as $500,000, as the FCC was weighing LightSquared’s request.
• Obama himself was an early investor and came to the presidency a firm believer in expanding broadband. He remains close to other early investors, like Gips and investment manager George W. Haywood, inviting some to luxe social events at the White House and more intimate gatherings like a night of poker and beer.
• Obama installed one of his biggest fundraisers, Julius Genachowski, a campaign “bundler” and broadband cheerleader, as chairman of the FCC, whose staff granted LightSquared a special waiver to operate.
• LightSquared’s current majority owner, hedge fund manager Philip Falcone, made large donations to the Democratic Party while his broadband request was pending before the FCC. He and LightSquared executives met with White House officials. Neither Falcone nor the White House would comment on what was discussed.
• LightSquared employs lobbying firms that wield formidable Democratic firepower: Ed Rendell, former governor of Pennsylvania and onetime chair of the Democratic National Committee, as well as the firm of former House Majority Leader Richard Gephardt.
• Jeffrey J. Carlisle, the company’s vice president for regulatory affairs, served with Genachowski and Gips on Obama’s transition team.

With nearly $3 billion sunk into the venture by hedge fund owner Falcone and his backers at Harbinger Capital, fierce lobbying pressure was applied to win the conditional FCC waiver, granted by the FCC before it reviewed comprehensive reports affirming interference problems.

When independent tests showed LightSquared’s service would overwhelm sensitive GPS receivers and render the location-tracking service nearly useless, last February the agency withdrew its permission for LightSquared to operate, beginning a death spiral for the 4G venture, which filed for bankruptcy in May.

Maggie Wilderotter's "High Speed" Fantasies

Frontier Communications CEO Maggie Wilderotter wrote this week the company’s network improvements and expanded broadband has moved West Virginia from the bottom five states in the country to the top five.

In an Op-Ed editorial published in the Charleston Gazette Tuesday, Wilderotter likened Frontier’s broadband improvement to the 1960s moon program.  Customers in West Virginia living with Frontier broadband can relate — to the 1960s anyway.

Where did Wilderotter get her information?  Perhaps from Frontier’s own Dan Waldo, who made the same claim last summer in an interview with MetroNews Talkline.  At the time he said it, West Virginia was ranked 47th in the country for broadband access.  It now ranks even lower today — 53rd by the federal government’s national broadband map (the federal government also ranks U.S. territories and possessions.)  In fact, West Virginia is in dead last place among U.S. states.  Only Guam, American Samoa, and the U.S. Virgin Islands are worse.

This chart ranks the percentage of customers within a state receiving a minimum of 3Mbps download speeds and upload rates of at least 768kbps. (Source: National Broadband Speed Map/National Telecommunications and Information Administration and the Federal Communications Commission )

The Center for Public Integrity is slightly more generous.  It ranked West Virginia 46th in broadband subscriptions.

Even Ookla, which analyzes millions of speed tests, tanked West Virginia, noting the average download speed is among the lowest of all 50 states at just 8Mbps, and that number seems high because it includes the state’s largest cable operators — the providers that actually deliver substantial broadband speeds.

Frontier’s contribution to West Virginia’s broadband improvement effort is measurable and noteworthy, at least for rural residents who can’t get broadband service any other way.  But many customers living with Frontier sure wish they could.

The company is expanding slow speed DSL service (1-3Mbps) to an increasing number of rural homes, but it does not come cheap.  On a megabit by megabit basis, all of the state’s cable providers deliver better value — more speed for the buck, when examining the actual “out the door price” that includes taxes, modem rental fees, and surcharges.  Frontier charges all of the above.

While Frontier delivers an average speed of 2.41Mbps in West Virginia, Comcast delivers more than 13Mbps.  Among wired providers, Frontier remains in last place.  Ookla shows some minor improvements in broadband speed, perhaps attributable to the network upgrades Wilderotter wrote about, but every other wired provider in the state performs better than Frontier’s DSL.  Who did worse?  Sprint’s 3G/4G wireless network and Wildblue, a satellite Internet Service Provider.

Average download speed performance of ISPs within West Virginia. (Source: Ookla; Graph Period: October 2009 - April 2012)

Wilderotter:

Broadband connectivity throughout all of America can be the thread that unites us all and helps pull our nation up again. Over the past two years in West Virginia, Frontier has worked with the state to bring broadband to thousands of residents and businesses. We have invested in a fiber backbone infrastructure that connects cities, libraries, schools, hospitals and government service facilities. The network improvements and the access to broadband have moved West Virginia from the bottom five states in the country to the top five. Economic development has picked up, and entrepreneurship is alive and well. Frontier is focused on taking this model to the other rural areas we serve throughout the United States.

Frontier’s efforts to expand broadband in a state its predecessor Verizon underserved for years is admirable and the company has indeed expanded service to areas that never had access before.  But as broadband rankings illustrate, Frontier’s incremental efforts are being overshadowed by more dramatic service and technology improvements in other states — the primary reason West Virginia is actually ranking worse than ever.  Frontier is not fooling anyone promoting its institutional fiber broadband networks ordinary West Virginians cannot access from their homes or businesses.  Our own readers tell us the company has repeatedly missed deployment schedules, broken promises, reduced speeds, and suffers from a woefully oversold network that slows to an intolerable crawl during peak usage periods.

Getting West Virginia among the top-five broadband states will require:

• Major investments in fiber optics into neighborhoods and homes.  All of the highest ranked states receive fiber to the home and/or fiber to the neighborhood service in larger cities, and faster DSL than what Frontier routinely sells West Virginians;
• An upgrade of the state’s broadband backbone to better manage increasing Internet usage during peak usage periods;
• Additional penetration of competing technologies into more rural areas.  Cable and fiber broadband deliver the fastest speeds, but most rural areas are bypassed.  Frontier will need to deploy faster and better service to dramatically improve the state’s broadband ranking.

Krone

When David Krone decided to quit his job as senior vice president of corporate affairs at Comcast to go to work as Sen. Majority Leader Harry Reid’s top aide, he got quite the parting gift from Comcast — $1.2 million to cover the cost of the condo he bought just a year earlier.

Comcast’s agreement to make Krone whole, even during one of the worst real estate markets in recent history, was quite a relief for the man who had to make do with a severance package worth $2.9 million.  Now Krone is slumming it on a Senate aide’s salary — $165,000 a year.  That is less than the $270,000 Krone contributed to various candidates, mostly Democrats, since 1989 according to the Center for Responsive Politics.  The Center for Public Integrity says he is Reid’s biggest donor over the past two decades.  Now Reid is his boss.

According to the Wall Street Journal, Krone spent years as a cable industry lobbyist, living in a penthouse unit above Reid’s own condo at Washington’s Ritz-Carlton.  Reid even sought to help Krone win a commissioner position at the Federal Communications Commission — an agency that oversees the cable industry Krone lobbies for, a position Krone declined.

In January 2008, Mr. Krone became a top executive at Comcast, working on public affairs, government relations and public-policy issues. He moved to Philadelphia, paying $1.95 million for a condo, real-estate records show.

After less than 10 months, however, Mr. Krone decided to bail out of the job. Friends say he was unhappy because he had expected to be more involved in top-level decision making than he ended up being.

By then, the real-estate market had declined. When he told Comcast he was quitting, the company agreed to pay him $2.07 million—allowing him to recoup his original purchase price, plus closing costs, according to Mr. Reid’s office.

Companies often cover real-estate losses when trying to woo prospective employees. It is extremely rare for them to do so when an employee quits, say executive-compensation experts. “Severance benefits and even golden parachutes generally don’t protect executives against personal real-estate losses,” says Chuck Yen, an executive-compensation consultant with Grant Thornton LLP.

“Comcast did not know that David Krone was going to Harry Reid’s office or to any other government or regulatory agency” when his separation agreement was negotiated, according to company spokesman John Demming.

Some people familiar with the matter say the company wanted to make sure that he didn’t harbor any ill will after leaving, given his connections. As a heavily regulated cable and media company, Comcast has a lot at stake in Washington.

When Mr. Reid invited him to Capitol Hill several weeks after he left Comcast, Mr. Krone thought it was to discuss another FCC post, Mr. Krone told friends. Instead, Mr. Reid offered him a job, and Mr. Krone accepted.

In April 2009, four months after Mr. Krone started in the Senate, the property sold for $1.09 million, $980,000 less than Mr. Reid’s office said he received from Comcast.

“Whether or not they lost money when they sold it is irrelevant,” said Jon Summers, Mr. Reid’s spokesman.

NoNetBrutality characterizes itself as a "grassroots campaign," but new evidence suggests it's actually just another telecom industry-backed astroturf group pretending to represent consumer interests.

On April 12th, a new voice joined the opposition to Net Neutrality reforms.  That was the date someone registered the domain name NoNetBrutality.com.  Just a few short days later, the group launched a basic website with a mission:

NoNetBrutality.com is a grassroots campaign with a triple mission. It seeks:

(1) to raise public awareness for the imminent threat of government take-over of the internet,
(2) to bring all net neutrality opponents together under one common banner,
(3) to petition the FCC not to go ahead with its attempts to regulate the internet.

NoNetBrutality.com was initiated by six liberty-minded activists from six different countries who fear that the current attempts of the U.S. government to restrict access to the internet might soon be followed by other governments if we don’t fight these flawed and dangerous ideas now – before they take root elsewhere.

The NoNetBrutality.com campaign was created by Kristin McMurray (United States), Yolanda Talavera (Nicaragua), Vincent De Roeck (Belgium), David MacLean (Canada), Huafang Li (China) and Aykhan Nasibli (Azerbaidjan), and formally launched in Washington D.C. on April 14th, 2010.

The group’s talking points about Net Neutrality are eerily in lockstep with those distributed by large phone and cable interests who oppose net freedom:

Net neutrality will take away incentives to invest and innovate – that means the internet will stop improving. Do you really want an internet czar to run the worldwide web and bureaucrats in charge of cyberspace?

Net neutrality will literally put the internet in “neutral.” Demand for Youtube, Bittorrent and streaming will grow, but who will pay for additional bandwidth if they aren’t allowed to charge for it anymore? Less options and less freedom for the consumers will be the ultimate consequence of these flawed ideas.

The FCC and others aim to regulate the internet in the same way as they control the television… There’s the real censorship! What will be the next step? Once the government has the mechanism in place to restrict internet access and to set prices, it is only a tiny step towards content control and taxes on internet use.

Everybody agrees that the internet is a resounding free market success story. If it isn’t broken, why fix it?

You know what that means — that “grassroots campaign” is in reality yet another corporate-backed astroturf campaign desperately trying to hide its true backer — the telecommunications industry.

Here’s what NoNetBrutality left out of its “facts”:

1. YouTube is owned by Google, which is a strong believer in Net Neutrality.
2. No online service has suffered more at the hands of Internet Service Providers’ throttles than Bittorrent.  Net Neutrality would ban those throttles.
3. The group ignores the multi-billion dollars in profit the broadband industry earns today from Internet service that is increasing in price at the same time costs to provide it are rapidly falling.
4. The FCC proposes no content controls for broadband — only consumer protections to prohibit providers from manipulating broadband traffic for money.
5. Everyone does not agree that the Internet is a “resounding free market success story.”  In fact, the United States has lost its former lead on Internet speed and adoption, and today is still dropping.  We now have worse service than many Asian and East European countries, and providers are trying to test new Internet Overcharging schemes t0 limit consumption and increase prices even higher.  That’s success?  Only for them.

So who is NoNetBrutality.com and Kristin McMurray, the American creator of the campaign?

McMurray's day job is to develop and run social media campaigns for corporate interests seeking to build support for their public policy agenda

Kristin McMurray is a social media strategist — a hired gun for corporate interests that want social-network-street-cred but don’t exactly know how to create an authentic-looking campaign that fulfills their corporate agenda.

McMurray has a history with corporate-backed conservative think tanks, particularly Americans for Limited Government, a group the nonpartisan Center for Public Integrity reports is 99 percent funded by three unnamed sources.  The group has routinely denied requests to identify where their backing comes from.  She also was hired to run a campaign for a climate change denial group.

McMurray tracks her site visitors carefully with Alterian’s SM2, a social media monitoring and analysis solution designed for PR and Marketing professionals. Alterian SM2 “helps you track conversations, review positive/negative sentiment for your brand, clients, competitors and partners across social media channels such as blogs, wikis, micro-blogs, social networks, video/photo sharing sites and real-time alerts.”

Grassroots this isn’t.

Accidental Evidence: The Consequences of An Exposed PowerPoint Presentation

Someone left their PowerPoint slides laying around for anyone to pick up and review.  That turned out to be about as foolish as the guy who left his field test version of Apple’s newest iPhone in a bar.

Now the truth can be told.

Think Progress managed to obtain a copy of the presentation, and it says quite a bit about just how much grassroots are actually growing at NoNetBrutality.com.  Let’s put it this way, if you were allergic to actual grass, you’d have no problems at all rolling around in NoNetBrutality’s astroturf.

It turns out NoNetBrutality is the creature of the Atlas Economic Research Foundation and Grover Norquist’s Americans for Tax Reform, itself heavily backed by corporate interests.

And you thought it was “six liberty-minded activists from six different countries.”  Not so much.

Atlas, which counts among its proud moments a corporate strategy to protect Big Tobacco, helps corporations coordinate their front group strategies.  Norquist takes corporate agendas and spins them into grass roots efforts in return for money.  He was caught up in the Jack Abramoff scandal when the disgraced lobbyist promised one of Norquist’s front groups $50,000 in exchange for “grassroots” support.

Of course, you aren’t supposed to know any of this.  Groups like NoNetBrutality are designed to hide their true ties and claim they are run by ordinary concerned citizens making their individual voices heard.  Too bad that PowerPoint presentation blew the lid off by telling a much different story.

One of the PowerPoint slides that wasn't supposed to become public knowledge

Net Neutrality is like what China does: “Putting policemen on every corner, on the street or on the Internet.” — Grover Norquist

Norquist’s bizarre interpretation of Net Neutrality shines through in NoNetBrutality’s own campaign.  On one of the PowerPoint slides, NoNetBrutality even cooks up a Chinese blog to underline Norquist’s world view that Net Neutrality can be compared with Chinese government censorship.

Every astroturf group has a target audience.  NoNetBrutality is no different:

Target Groups

• Libertarian like minded Internet users and video gamers
• Fiscal and Social Conservative Activists, Campaigners and Think Tanks
• Internet Service Providers and Communications companies
• Policy makers (Legislators, Regulators, Public officials)

For groups like NoNetBrutality, getting corporate and conservative support means being a cog in the wheel at Grover’s infamous Wednesday strategy sessions.  One of the PowerPoint slides calls attention to just how important these meetings are in the effort to coordinate opposition to consumer-friendly broadband reform.

Now that the cat is out of the bag, outraged consumers have invaded the group’s primary social media outlets.  Their Facebook page is now loaded with comments from those upset about the fact the entire effort is little more than another bought-and-paid-for deception effort from the telecom industry.  Twitter is now used more to expose the group than to promote it.

The ironic part is that the very group that seems so alarmed by the prospect of “government censorship of the Internet” has no problems censoring its own Facebook page to remove posts that it determines are “off topic” or “not polite.”

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[Update Wednesday 3:20pm — This “group” came out of the closet this morning as a “class project” funded by Atlas, and attacked Think Progress for overreaching as to the group’s own importance in the Net Neutrality debate.  You can read my extended thoughts on today’s developments in the Comments section.  In short, I think today’s revelations may actually do even more damage to their credibility than earlier thought.  What does it say about a group of people willing to attend a “school” (and the “school” itself) that actively teaches how to develop and launch highly-deceptive fake grassroots campaigns designed to fool consumers?  Today they are downplaying the entire affair as “funny,” but if you were a visitor to their website, would you be laughing to learn the group isn’t really run by “six liberty-minded activists from six different countries” but rather those budding to learn the craft of sock-puppetry?

I think it’s sad some people have a moral code that says intentional deception in a public policy fight is just fine.  When you lie to your supporters and opponents about who you really are, and then say it’s “funny” when you come clean later,  they are left with little more than to ponder whether you were lying to them then or lying to them now.]