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Wining and Dining the FCC: Comcast Sponsors Honors Dinner for Commissioner During Merger Review

FCC Commissioner Mignon Clyburn

FCC Commissioner Mignon Clyburn

Comcast will pay $110,000 to sponsor a major dinner honoring FCC commissioner Mignon Clyburn at the same time the regulator is considering whether to approve the cable company’s application to acquire Time Warner Cable.

In a barely noticed Senate lobbying disclosure released last month, Time Warner Cable admitted it was also spending $22,000 of its subscribers’ money on the same meal.

The money gets Comcast a top-level commitment as a “presenting sponsor” at the Walter Kaitz Foundation dinner next month, which features Clyburn receiving a “diversity advocate” award. Comcast will be prominently recognized with marquee recognition, get premier seating for 40 of its guests, and inclusion in a variety of ads and “E-News Blasts.”

Some good government groups hope Clyburn can arrange for a last-minute scheduling conflict to avoid the obvious conflict of interest of a cable operator honoring a commissioner who could decide the fate of its multibillion dollar merger deal.

“I think that the timing is curious,” said Carrie Levine, research director at Citizens for Responsibility and Ethics in Washington (CREW), which noted the corporate sponsorships in a blog post Monday. “They’re honoring an FCC commissioner at the exact same time they’re trying to get approval for a merger. And that doesn’t look so good.”

CREW found TWC listed as a “benefactor” on the event’s supporters’ page and the cost of a “benefactor” level table package at the dinner is $22,000. Comcast, meanwhile, is listed on the foundation’s web site as a “presenting sponsor” for the dinner, which costs $110,000.

Comcast is working minority groups hard for letters and votes supporting its merger with Time Warner Cable, notes CREW:

TWC and Comcast’s contributions in honor of Commissioner Clyburn were made at a time when the two companies are aggressively working the levers of power to get their merger approved. As CREW has noted, using honorary contributions to lawmakers and regulators’ favored charities to curry favor is one of the more under the radar moves in Comcast’s merger playbook—a playbook that also emphasizes lobbying, campaign contributions, and winning support from third-party groups, especially those representing minorities.

Regulators must approve the deal, and Congress has been scrutinizing it. Several lawmakers have voiced reservations in hearings about the merger’s potential impact, and this month, more than 50 House members sent Comcast and TWC a letter saying they should commit to carrying independent Latino-focused channels as a condition of the merger. In May, CREW found that between 2011 and 2013, Comcast had spent heavily to honor the Congressional Black Caucus (CBC) and the Congressional Hispanic Caucus (CHC), whose members could be important supporters of the merger. Comcast also gave big to the Asian Pacific American Institute for Congressional Studies (APAICS), honoring, among others, Rep. Judy Chu (D-CA), who is a member of the House Judiciary Committee’s Subcommittee on Intellectual Property and the Internet and supported the Comcast/NBC Universal Merger approval in 2011. TWC made fewer honorary contributions than Comcast during the same period, but also contributed $100,000 in honor of the CHC.

A review of the two companies’ 2014 mid-year lobbying contribution reports reveals money is still flowing to these key groups, and there has been a significant uptick in giving to the CHC. In the first six months of 2014, Comcast contributed $273,454 in honor of the CHC, more than the company contributed in any individual year between 2011 and 2013. Comcast also reported giving $125,000 in honor of the CBC and $50,000 to the APAICS in honor of Rep. Chu and Rep. Mike Honda (D-CA).

TWC increased its giving to other Latino advocacy groups as well. On February 18, 2014, the company contributed $25,000 to the League of United Latin American Citizens (LULAC) in honor of several members of Congress and Secretary of Labor Thomas Perez, an increase from its $20,000 contribution to LULAC in 2013. In addition, on March 5, 2014, Time Warner Cable contributed $25,000 to the National Council of La Raza (NCLR) in honor of the “Gang of Eight” senators who passed a comprehensive immigration reform bill in June 2013. TWC previously contributed a total of $45,000 between 2011 and 2012 to NCLR.

Stop the Cap! will continue to expose the names of elected officials and non-profit and civil rights groups that have thrown their support behind Comcast, which in turn delivers contributions, free exposure, and in some cases future employment with the cable operator.

Paying Your Cable Bill Helps Shower Millions on D.C. Fatcats Working Against Your Interests

Phillip Dampier November 19, 2013 Astroturf, Community Networks, Competition, Consumer News, Editorial & Site News, Public Policy & Gov't, Rural Broadband Comments Off on Paying Your Cable Bill Helps Shower Millions on D.C. Fatcats Working Against Your Interests

nctaA 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

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 good here, whether it comes from AT&T or the cable industry.' -- LULAC

‘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.

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.

Call to Action: Help Get the Congressional Black Caucus on Board with Net Neutrality

Phillip Dampier September 16, 2010 Editorial & Site News, Net Neutrality, Public Policy & Gov't Comments Off on Call to Action: Help Get the Congressional Black Caucus on Board with Net Neutrality

Color of Change needs everyone to take a moment and let members of the Congressional Black Caucus know we need them to stand up for Net Neutrality and broadband reform to help Black communities harness the political, economic, educational, and cultural power of the Internet.

While several members are already on board, there are many who either haven’t gotten the message or are on the wrong side of consumers.  Color of Change writes:

Most on the wrong side have simply been taken in by the lies of telecommunications industry lobbyists. But others have taken large financial contributions from telecoms and appear to be willingly carrying water for their biggest donors.

It’s unacceptable, whatever the reason. The CBC needs to understand that Internet freedom is in the vital interest of Black communities. Please join us in calling on the Congressional Black Caucus to support a free and open Internet, and then ask your friends and family to do the same.

Meeks

First, please thank these members who are strong advocates of Net Neutrality and broadband reform that favors consumers:

  • Rep. Barbara Lee (D-California)
  • Rep. Maxine Waters (D-California)
  • Rep. John Conyers (D-Michigan)
  • Rep. Donna Edwards (D-Maryland)
  • Rep. Keith Ellison (DFL-Minnesota)
  • Rep. Donald Payne (D-New Jersey)

Second, take note of these two Big Telecom bad actors effectively on AT&T and Verizon’s payroll:

  • Rep. Greg Meeks (D-New York) – For years, AT&T and Verizon have been among Meeks’ biggest donors. In October 2009, he collected 70 signatures from his colleagues on an industry-backed letter — written after consulting AT&T — designed to weaken support for Internet freedom.  Meeks may claim that his major motivation is protecting jobs. But there’s no credible evidence that protecting Internet freedom will lead to job losses or decreased investment — in fact, evidence suggests the contrary. But in the face of massive support from telecoms, it appears that Meeks has only truly considered one side of the argument — the one that earns him fat checks.
  • Rush

    Rep. Bobby Rush (D-Illinois) – AT&T has long been one of Rush’s largest donors. Then, from 2001 – 2004, they donated $1 million to a community center Rush founded in Chicago. Since then, Rush has been a leader in the effort to eliminate Internet freedom. In 2006, Rush helped convince many members of the CBC to kill a measure that would have enshrined Internet freedom into law. And since that time, he has supported other efforts to weaken Internet freedom protections.  It’s wonderful AT&T donated the money to a community center Rush started, but that doesn’t mean AT&T is his only constituent.  Or does Congressman Rush need at least a million dollars from you to represent -your- interests before he’ll vote your way.

By signing the online petition and contacting members of the Congressional Black Caucus on these issues, you are delivering a wake-up call that lets Congress know these issues are critically important to you and they need to pay attention.  More importantly, it will expose those who feel safe taking big checks from phone and cable companies as a reward for voting against your interests.  If they know you are watching and their votes can make a difference in how you will vote in the next election, many will have the courage to leave Big Telecom’s money on the table and walk away.

Eight Members of the Congressional Black Caucus Abandon Constituents – Oppose Net Neutrality, Broadband Reform

Rep. Gene Green (D-AT&T)

Rep. Gene Green (D-AT&T)

The digital divide in broadband has never been just a rural issue.  Some of America’s largest cities are filled with families who cannot afford the prices some broadband providers charge for access.  So it came as quite a surprise that at least eight members of the Congressional Black Caucus (CBC) decided to oppose the Obama Administration’s efforts to move forward on its telecom agenda of better broadband and Net Neutrality.

It also disturbed James Rucker, executive director of ColorOfChange.org, whose 600,000 members are part of America’s largest African-American online political organization.

Rep. Gene Green (D-Texas/AT&T) circulated a letter opposing regulatory intervention in broadband around Capitol Hill looking for additional signatures from members of Congress.  Green’s letter, directed to Federal Communications Commission chairman Julius Genachowski, is the public policy equivalent of a biggie-sized series of lies, distortions, and misrepresentations.  Green is so proud of his efforts, constituents can’t find word one about it on his website. Instead, Green claims he is working “to expand Internet access and improve Internet competition, in order to reduce access prices and close the ‘Digital Divide’ between those online and those who are not.'”

Sure he is.

ColorOfChange urged members of Congress not to co-sign Green’s letter:

This letter is not the first time we’ve seen deceptive language or outright misinformation used to advocate against protecting network neutrality. In fact, the telecom industry has for years been engaged in a well-coordinated and massively funded campaign to intentionally misinform the public, Congress, and public interest groups about net neutrality, successfully confusing the issue to their advantage. The industry has spent millions of dollars on advertising, public relations, and lobbying efforts — using industry front groups, ads in Capitol Hill newspapers, and lobbyists. Sadly, the industry in recent years has also managed to enlist members of Congress and advocacy organizations rooted in communities of color to echo misleading and false arguments about net neutrality. This too has been a concern for many ColorOfChange members and has been the subject of our campaign work. While it has a right to engage in the public discourse about this issue, the telecommunications industry has demonstrated a disinterest in honest debate, spreading misinformation that plays on ignorance about the issue, and the somewhat confusing, technical language that surrounds it.

Several of the advocacy groups involved take substantial contributions from telecom companies — notably AT&T and Verizon, or have telecom interests serving on their board of directors.  When a minority advocacy group suddenly starts parroting AT&T, Verizon, or Comcast talking points, just follow the money.

Unfortunately, 74 Democrats, including eight members of the CBC aren’t listening to ColorOfChange or their constituents, and co-signed Green’s letter.  James Rucker notes:

Last week, I urged black members of Congress not to sign this letter. But we quickly learned that Representatives G.K. Butterfield (D-NC), Yvette Clarke (D-NY), Lacy Clay (D-MO), Alcee Hastings (D-FL), Eddie Bernice Johnson (D-TX), Greg Meeks (D-NY), Bobby Rush (D-IL), and Bennie Thompson (D-MS) didn’t get the message.

Those wondering why these eight members were in such a hurry to disconnect their constituents’ interests need only consider the enormous campaign contributions sent to them by the phone and cable industry:

Name Total Contributions (2010 cycle)
G.K. Butterfield $33,500
Yvette Clarke $13,000
Lacy Clay $12,000
Alcee Hastings $23,500
Eddie Bernice Johnson $19,000
Gregory Meeks $27,000
Bobby Rush $32,500
Bennie Thompson $29,500

Source: Opensecrets.org

That’s only for this year — and we’re only five months into 2010.  Co-signing Green’s letter could add an extra zero to the amount on the next check.

Rep. Green himself is no stranger to campaign contributions from telecom companies.  So far in 2010, he’s accepted money from both AT&T, Verizon, and the National Cable & Telecommunications Association.  Since 2000, every time a major public policy debate fires up over telecommunications issues, AT&T (and its predecessor SBC) increased the amount on Green’s check.  During the 2004-2006 cycle, when SBC sought a merger with AT&T, SBC contributed $11,500 to Rep. Green.  During the first round of the battle to secure Net Neutrality in 2006-2007, AT&T was Green’s top donor with a $15,000 contribution.

ColorOfChange.org today announced a new campaign directed towards the eight CBC members who co-signed Green’s letter.

“Our members are deeply concerned that by signing Green’s letter, black members of Congress are taking a stance that fails to secure our digital rights,” said James Rucker, executive director of ColorOfChange.org. “Some CBC members have perhaps signed Rep. Green’s letter without fully understanding what is at stake while others seem to know, but are serving other interests. There is a significant correlation between those leading the charge and those accepting significant contributions from the industry which stands to benefit from the FCC being rendered impotent. In either case, our members are eager to make clear how important this issue is to our community and to Americans in general, and to explain why they see this as a 21st century civil rights issue.”

The group is calling on members to place more than 1,750 phone calls to all eight representatives, urging they stop representing the interests of phone and cable companies and start representing the interests of their constituents.  ColorOfChange is asking everyone to ask these members to promptly remove their names from Rep. Green’s letter, which represents little more than propaganda talking points from big telecom.

Last month, a federal court removed the FCC’s authority to enact the most basic consumer protections over broadband given its current classification, which was decided upon by a previous set of commissioners. The court ruled that the agency did not have the authority to institute the desired protections while broadband was designated an information (or Title I) service, over which the FCC has limited jurisdiction. The ruling prevented the FCC from implementing proposed rules on network neutrality and cast a cloud of uncertainty over its authority to implement portions of the National Broadband Plan intended to close the digital divide.

Earlier this month, the FCC announced it would reassert its authority to enact limited regulation of broadband by reclassifying it as a communication (or Title II) service. In response, telecommunications industry lobbyists have stepped up their efforts to influence lawmakers. Rep. Green’s letter parrots long-debunked arguments that serve the interests of major industry players and threaten the FCC’s ability to make rulings that would expand broadband access.

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