Republican Gov. Paul LePage has picked a former telecom industry insider and lobbyist to serve the interests of public utility customers and consumers in Maine.

Barry Hobbins is known as an “old school” Democrat, and has been a part of Maine politics for 26 years — since 1972 — most recently as a top political fundraiser. Perceived as unlikely to rock many boats, he was appointed by the Republican governor to replace the current Public Advocate Tim Schneider, who worked on a solar energy bill the governor loathed and vetoed last year.

At the same time the governor is suing the state’s Attorney General for refusing to toe his line on the political positions of his administration, LePage insists Hobbins will serve only the interests of public utility customers and not those held by special interests. The Public Advocate is the public’s representative before the Maine Public Utilities Commission, federal regulators and the state legislature.

“That’s what the public advocate job is: to represent the ratepayer, not to represent a special interest,” LePage told reporters at a recent press conference.

Hobbins

But consumer advocates note Hobbins has already represented several special interests, most notably AT&T, where he served as a lobbyist after temporarily leaving the legislature in 1990. Hobbins is also no stranger to taking lavish gifts from the state’s largest telecom companies, including Time Warner Cable (now Charter Communications). In 2013 and 2015, Hobbins was paid $5,300 and $8,257 respectively to attend industry-sponsored events the cable company called their “winter policy conferences.”

In 2015, Stop the Cap! reported on one of these conferences held at the cushy Cape Elizabeth seaside resort Inn by the Sea, where room rates routinely hit the $500 a night mark. Hobbins was in attendance with about a dozen other legislators, enjoying the complimentary menu which included light noshing options like a herb marinated skirt steak with roasted mushrooms, chimichurri, piquillo aioli, and herbed hand cut steak fries that would cost you or I at least $26, drinks not included.

Hobbins also stayed to enjoy a full menu of lobbyist hobnobbing and “educational” attacks on community broadband, opposition to government oversight of broadband, and efforts to ensure state laws continued to favor incumbent providers:

“Welcome to Inn by the Sea, where relaxed coastal luxury comes naturally.”

• Moderator (Session 1): Jadz Janucik, National Cable & Telecommunication Association – The NCTA is the nation’s largest cable industry lobbying group;
• Dave Thomas, Sheppard Mullin Richter & Hampton LLP: A corporate attorney representing cable companies, particularly when they face competitive threats;
• Lisa Schoenthaler, National Cable & Telecommunication Association;
• Moderator (Session 2): Charlie Williams, Time Warner Cable;
• Charles Davidson and Michael Santorelli from the Advanced Communications Law and Policy Institute at New York Law School. Both have received direct compensation from Time Warner Cable for their  “research” reports and are very active and frequent defenders of Time Warner Cable’s public policy agenda;
• Joe Gillan, Gillan Associates – an economist working under paid contract with the cable industry;
• Moderator (Session 3): Tom Federle, Federle Law: Chief lobbyist for Time Warner Cable in Maine for over seven years;
• Robin Casey, Enockever LLP: Casey is one of the nation’s pre-eminent cable industry lawyers, called by the Texas Cable Association “the authority on the telecom industry;”
• Mary Ellen Fitzgerald, Critical Insights: A Maine pollster hired by Time Warner Cable to carry out the company’s carefully worded survey on broadband issues;
• Moderator (Session 5): Melinda Poore, senior vice president of governmental relations, Time Warner Cable Maine.

Hobbins claimed his extensive involvement in the telecommunications industry never influenced his legislative work and won’t if he becomes public advocate. But Hobbins has kept extremely close ties with his friends in the cable industry. Tom Federle, Time Warner Cable’s former chief lobbyist also served as former treasurer of a political action committee directly controlled by Hobbins, one that raised more than $30,000 for Maine politicians from Time Warner Cable, AT&T, an industry association, and Federle’s own law firm. That fundraising committee coincidentally disbanded.

Federle promotes his close ties to legislators like Hobbins on his website:

Since 2000, Tom has been an extremely effective advocate and lobbyist for clients before the Maine Legislature. Tom has represented some of Maine’s largest businesses and associations in advancing sound public policy positions. Tom’s work experience both in the private sector and at the highest levels of state government provides him with invaluable perspective and real know-how. Tom puts this to work for his clients to influence the outcome of legislation that impacts his client’s objectives. Tom’s balanced demeanor and tenacity combine to make him a particularly effective advocate before the Maine legislature.

Federle

In recent testimony, Federle used his position and influence to blast efforts to improve community-owned broadband services in Maine, telling the legislature: “There are countless examples of government getting into the business of providing broadband, with taxpayers footing the bill, only to end in failure with mountains of debt.”

In April, Maine State Representative Nathan Wadsworth (R-Hiram) introduced a bill to revoke local authority over building internet networks needed by local businesses and residents. The one-time Maine state ALEC chair introduced HP 1040 (also cross filed as LD 1516) to attempt to block efforts to construct public broadband networks and protect incumbent providers. This, despite the fact Maine has ranked 49th out of 50 states in the quality and availability of broadband service.

“This effort joins a national trend of big cable and telephone companies, like Time Warner Cable and FairPoint, leaning heavily on state legislatures to protect themselves from competition,” says Christopher Mitchell, director of the Community Broadband Networks initiative at the Institute for Local Self-Reliance. “Communities do not make these investments when they are well served. If big cable and telephone companies want to preserve market share, they should invest in better services rather than crony capitalist laws.”

Where Hobbins stands on the issue isn’t known.

The nomination will go before a legislative confirmation hearing May 9.

Unitel is one of five Maine telephone companies facing competition from Time Warner Cable's "digital phone" service

The Maine Public Utilities Commission has denied a request by Time Warner Cable to launch “digital phone” competition in rural Maine unless and until the cable operator agrees to completely wire every home that wants service in the affected communities.  The decision may carry national implications because it signals utility commissions have the power to stop unfair competition from companies that don’t agree to provide their service on a universal basis.

Five rural phone companies faced the prospect of trying to compete with Time Warner Cable’s “digital phone” service under requirements they provide universal service to every customer in their service area while the cable operator could cherry-pick where to provide service.

Unitel, Lincolnville Networks, Tidewater Telecom, Oxford Telephone Company and Oxford West Telephone Company told the PUC Time Warner Cable’s competitive threat was not fair because the cable company only provided service in choice neighborhoods, typically those with multiple residences adjacent to one another.  Only wiring significant population areas reduces costs for the cable operator while the rural landline providers are required to extend service to every resident in their communities, regardless of where they live.

A review by the PUC found Time Warner Cable’s request would create an undue economic burden on the rural telephone companies, reducing their value and increasing the risk of their long term survival, which would discourage investment and increase risk to creditors.

Reishus

PUC Chair Sharon Reishus: “Our decision…is taking place in a changing landscape for telephone regulation at the federal level with pending congressional and FCC actions, in the marketplace and in wireless technology. Our decision came down to an analysis of the current financial ability of the rural companies to withstand market competition if the exemption were lifted.”

“Customers in these rural areas must be assured a telephone service provider of last resort and access to lifeline services. Although the commission has a long history of recognizing the value of competition in the telecommunications market, in this instance, where Time Warner is not proposing to expand the availability of its service throughout the entire service territory of the rural companies, selective competition would undercut the ability of the rural companies to fulfill their ‘provider of last resort’ obligations.”

For years large telephone companies like AT&T and Verizon have argued that cable’s entry into the telephone business was unfair because cable companies never were required to serve every potential customer.  But instead of maintaining demands that cable match their universal service obligations, large phone companies have instead tried to free themselves from having to provide service to every possible customer.  AT&T, for example, has heavily lobbied for repeal of universal service requirements that mandate they provide telephone service to residents who live in the most rural service areas.

The Maine PUC has adopted a different standard — demanding that would-be cable competitors get busy wiring their entire communities for cable if they want permission to compete with area phone companies.  If they are not willing to do so, they cannot provide phone service to anyone in those communities.

Time Warner Cable had been seeking permission to provide phone service in rural Maine since 2008.

[flv width=”560″ height=”340″]http://www.phillipdampier.com/video/Oxford Networks.mp4[/flv]

A promotional video from Oxford Networks (d/b/a Oxford/Oxford West Telephone Company) explaining the company’s history and their investment in fiber optics.  (3 minutes)