Dingell

Rep. John Dingell has told FCC Chairman Julius Genachowski to drop broadband reform because the Michigan Democrat has not received a detailed reply to his letter about the matter sent back in May.  The Hill reports Dingell doesn’t like to be kept waiting for responses to his “Dingell-grams.”

“I find it wholly frustrating that Chairman Genachowski, after nearly two months, still has not responded to my questions about the classification of broadband Internet access services,” Dingell said in his letter.

Dingell added that he has “serious concerns about the FCC’s proposed course of action” and that Congress has “intense interest” in Genachowski’s plans.

In his May letter, Dingell had said he doubts Genachowski’s plan despite his support for network neutrality rules, which the FCC hopes to enact under the authority it would gain through its administrative maneuver.

“I feel Chairman Genachowski’s responses to my questions would be invaluable in informing the debate on the matter,” Dingell wrote this week.

He said the FCC should not proceed with Genachowski’s proposal to boost its power over Internet service providers through a regulatory maneuver known as “reclassification.” In his original letter, Dingell expressed “grave concern” that Genachowski’s plan risks reversal by the courts, putting “at risk significant past and future investments, perhaps to the detriment of the Nation’s economic recovery and continued technological leadership,” he wrote at the time.

Dingell’s days of putting his constituents first are well past.  He is the longest currently-serving Congressman and the third longest serving Congressman in the history of the country.  These days, having Washington officials bow before him is a much higher priority.  In a petulant letter sent to the chairman on July 20th, Dingell puts a deadline, in bold, for Genachowski’s reply.

Genachowski is probably wasting paper and time responding, considering Dingell already made public his opposition for broadband reform back in May when he wrote, “I have strong reservations about the course the commission is presently taking.”  Dingell said he’s worried that Genachowski’s proposal would be struck down in court, puts at risk “significant” past and future investments and could even “paralyze” other regulatory initiatives.

The reasons for his opposition amount to little more than concern trolling.  The telecommunications industry already challenges virtually every controversial policy enacted by government in the courts, threatens to slash investment in providing broadband service to those they’ve shown little interest in serving before, and do not deserve credit for “technological leadership” as the United States falls further behind others in broadband rankings.  The only threat to the national economic recovery from some cable and phone companies is another rate increase eating away at already tight budgets for most Americans.

Dingell’s latest noise opposing broadband reform brought praise from the U.S. Telecom Association, a group run by and for major broadband providers.  That should not be a surprise either, considering the USTA is Dingell’s 14th largest campaign contributor, donating $9,000 so far this congressional term.

Telecommunications interests who oppose pro-consumer broadband reform are among Dingell’s biggest contributors (in order of ranking):

Open Secrets reminds us this is a big money, high stakes fight with special interests pouring tens of millions into an all-out effort to stop meaningful broadband reform:

Since the start of the 2008 election cycle, telephone utility companies have given $12.7 million to federal candidates and party committees and spent $118.7 million on lobbying. Current lawmakers have collected $37.9 million from the industry, with Republicans collecting 51 percent of that.

The computers and Internet industry has spent even more money politicking and has leaned a little more heavily toward Democrats, giving current members of that party 60 percent of their nearly $50 million in total contributions. The industry has also spent $331.4 million on lobbying since 2007.

As the top all-time donor to federal politics, AT&T may have an especially strong standing on Capitol Hill. The company’s employees and political action committee have given $22.6 million since 1989 to current lawmakers through their candidate committees and leadership PACs, with 52 percent of that going to Republicans.

Verizon, too, is considered a “Heavy Hitter” for its extensive contributions over the years to federal political candidates. Current lawmakers have collected $9.2 million from Verizon’s employees and political action committee since 1989, with Democrats receiving 51 percent of that.

[…]

Here are the current lawmakers to bring in the most through their leadership PACs and candidate committees from telephone utility companies since 1989:

Opposing broadband reform that ultimately helps your constituents in return for campaign contributions and praise from groups like the USTA is business as usual in Washington.  Dingell’s outburst shows he’s forgotten exactly who he is supposed to be representing in this debate — his Michigan constituents, facing ever-increasing broadband bills.

This man could be one of five helping to guide the future of your broadband service. Kyle McSlarrow is the head of the cable industry lobby.

Free Press, the pro-consumer advocacy group, spent $42,000 to alert the public the fix was in at the Federal Communications Commission.

The agency has been holding secret meetings with four (now five) contenders in the battle for consumer broadband reform: Verizon, AT&T, Google, and Skype.  The Washington Post reports this morning the lack of cable industry participation we reported last night has apparently not been a problem after all.  The cable industry lobbying group NCTA is also invited.

Consumers aren’t invited.  Neither is the press.

Josh Silver from Free Press:

“It looks like yet another federal agency is catering to big business behind closed doors and ignoring the American public. It’s inexcusable that the FCC is brokering backroom deals with industry lobbyists, while pretending to run a transparent process. After the financial crisis and the oil spill, you would think the Obama administration would have learned a lesson. But we won’t stand by and watch the Internet go the way of Wall Street and the Gulf of Mexico.”

“Despite the chairman’s campaign to be transparent, it’s doing the same things as the previous administration,” added Silver.

A source at the meeting said the sides were far apart on the issues — telecommunications companies oppose Net Neutrality, content producers favor it.  Telecom companies don’t want broadband oversight, some content producers do.

Dick Cheney's ghost is haunting the halls at the FCC these days as the agency conducts secret, closed-door meetings with just four companies to achieve "common ground" on broadband regulation. Consumers are not invited to attend.

In 2001, Vice President Dick Cheney convened the first meeting of the always-off-the-record National Energy Policy Development Group.  Secretly inviting executives of the nation’s largest oil companies and lobbyists for natural gas and mining, Cheney hoped to find “common ground” on energy issues that he could translate into legislation on Capitol Hill.  The final report kept the names of the self-interested corporate executives off the member roster, and predictably called for legislative actions that would directly benefit those in attendance.

In June 2010, a series of meetings with FCC Chairman Julius Genachowski’s chief of staff and executives from AT&T, Verizon, Google and Skype got underway to find “common ground” on the issues of broadband regulation and Net Neutrality.  With irony, the same FCC that promised it would be “the most open and transparent ever” has barred the press and the public from participation.  No consumers were invited.  No minutes from the meetings will be disclosed.  In short, these are “closed-door” meetings.

Even more surprising, apparently the FCC forgot to invite Comcast, the cable conglomerate most directly responsible for the agency having its authority cut from beneath it in the first place.

When the Washington Post asked Eddie Lazarus, Genachowski’s chief of staff, what was on the agenda, only vague notions about “seizing the opportunity” to find common agreement on issues like Net Neutrality were disclosed.  Lazarus added the big four were also there to give input on Congress’ interest in revising the Communications Act.

That’s great news for thousands of Washington’s lobbyists who helped fashion the disastrous 1996 Communications Act that represented Christmas morning for corporate interests — more deregulation in the broadcast business which lead to massive consolidation, giveaways to the cable and telephone industry, and more handouts to wireless companies.

What was supposed to be a law to govern the public interest of the airwaves and telecommunications turned into a lobbyist feeding frenzy.  Consumers couldn’t afford the price of admission. Reopening the Communications Act means telecom companies from coast to coast can get busy working on their Christmas wish lists for the 500+ Secret Santas that live and work in the legislative branch of government these days, especially on the Republican side of the aisle.

Of course, the real outrage here is the FCC’s hope that the four companies can reach some agreement on contentious broadband issues and then the agency can do away with the entire matter of broadband regulatory reform.  Why fight the battle if you can compromise the issue away?  No matter what the four agree on, there are still many outstanding issues relating to consumer protection which cannot be negotiated by four corporate entities.

Those on both sides of the broadband regulatory issue are appalled at the secrecy.  Brett Glass, who opposes Net Neutrality and runs a WISP in Wyoming asked, “What happened to Chairman Genachowski’s promises of “the most open and transparent FCC ever?”

Indeed.

Lazarus tried his best to paper over the serious implications of holding secretive meetings in a blog post:

Senior Commission staff are making themselves available to meet with all interested parties on these issues. To the extent stakeholders discuss proposals with Commission staff regarding other approaches outside of the open proceedings at the Commission, the agency’s ex parte disclosure requirements are not applicable. But to promote transparency and keep the public informed, we will post notices of these meetings here at blog.broadband.gov. As always, our door is open to all ideas and all stakeholders.

In part, here was our response to Mr. Lazarus:

There is no transparency or openness in closed-door meetings that bar the public from participation. It’s just more of the same inside-the-beltway deal-making that will undercut consumers. Believe it or not, there is more at stake here than whatever issues Verizon, AT&T, Google, and eBay have to discuss.

And what if the four agreed on anything (improbable)? Does that mean the rest of us are expected to go along to get along?

The FCC’s door is -not- open to all ideas and stakeholders when the chairman’s chief of staff only invites four voices to his table.

There is nothing open and transparent about secret meetings peppered with excuses about why disclosure rules do not apply.

[Update 10:30am ET Wednesday — The DailyFinance quotes a government source: “We fu*ked up,” a government source familiar with the meetings told DailyFinance. “We deserve the bad press. It was a process foul at a minimum.”]

AT&T: 'If you don't do what we say, we're taking U-verse away!'

AT&T is threatening to pick up its toys and go home if the Federal Communications Commission tries to bring back its oversight powers over broadband.

CEO Randall Stephenson threw a major hissyfit in the pages of the Wall Street Journal, annoyed the company doesn’t have free rein to do whatever it wants.

“I’m a 3-2 vote away from the next guy coming in and [trying to regulate us], [and] I take it away,” Stephenson said, referring to it’s U-verse IPTV service.

AT&T has threatened to cut spending on U-verse deployment if AT&T faces regulations like Net Neutrality in its broadband business.

“If this Title 2 regulation looks imminent, we have to re-evaluate whether we put shovels in the ground,” Stephenson said, claiming the company planned to spend a “couple billion” dollars a year on the service… until now.

But AT&T has already cut spending on U-verse, slashing $2 billion in U-verse investments in 2009 alone — news trumpeted to shareholders.  Additionally, AT&T has laid off thousands of employees.  In short, the threats the company made this week have already come to pass… more than a year ago.

Many analysts claim AT&T is bluffing.  Like most landline providers, AT&T is losing traditional phone customers who are disconnecting their wired phone lines.  Its wireless division has been pummeled for inadequate 3G coverage, poor customer service, and lousy reception in many areas.  AT&T can’t afford -not- to upgrade their services if they wish to retain customers.

The cable television industry certainly hopes AT&T isn’t bluffing.  They are enjoying AT&T’s disconnect business as customers dump inadequate DSL service and overpriced phone lines for cable-provided alternatives.

As expected, the Federal Communications Commission today voted 3-2 along party lines to move forward with a Notice of Inquiry on Chairman Julius Genachowski’s proposed “third way” of “light touch” regulation to restore the agency’s authority over broadband matters.

A Democratic majority approved Genachowski’s proposal after debate among Commission members.  Democratic Commissioner Michael Copps, long critical of the Bush Administration’s efforts to deregulate broadband, was among the most forceful in calling for some oversight over the industry.  Copps contended that the Bush Administration bent over backwards for large telecommunications companies in unprecedented ways, even stripping away basic consumer protection policies relating to privacy and billing.  The result, he contends, has been a disaster for broadband consumers.

“We need to reclaim our authority,” said Copps. “I, for one, am worried about relying only on the good will of a few powerful companies to achieve this country’s broadband hopes and dreams.”

Copps dismissed rhetoric from industry groups in opposition to the proposal, claiming broadband oversight was not a government takeover or regulation of the Internet.

“We are not talking, even remotely, about regulating the Internet,” Copps said. “We are talking about meaningful oversight of the infrastructure and services that allow Americans to get to the Internet.”

Genachowski’s proposal would correct flawed policy enabled by former Bush Administration FCC Chairman Michael Powell, who supported the classification of broadband as an “information service.”  Powell claimed that classification would include ancillary authority to back FCC enforcement.

That authority would be put to the test.

In 2007, Comcast secretly imposed speed restrictions on customers using peer-to-peer software.  Using the authority Powell claimed the agency had, the FCC ordered the broadband provider to cease and desist its speed throttling. Although Comcast discontinued the practice, replacing it with a 250 GB monthly data cap, the company also sued in federal court a year later, claiming the FCC’s broadband authority was flawed.

Earlier this year, the court agreed, ruling the FCC could not extend ancillary authority under its “information service” classification of broadband.  In that one decision, the FCC lost most, if not all of its oversight powers over broadband matters.

By reclassifying broadband as a “telecommunications service,” the Commission believes it can win back its oversight powers.  The Supreme Court, in an earlier case, upheld similar authority in another matter.

But telecommunications companies have claimed the proposed reclassification would subject broadband providers to 1930’s era regulations established for telephone landline companies.  They objected strongly to today’s vote.

Tom Tauke

Tom Tauke, Verizon executive vice president for public affairs, policy and communications said, “Reclassifying high-speed broadband Internet service as a telecom service is a terrible idea.  The negative consequences for online users and the Internet ecosystem would be severe and have ramifications for decades.  It is difficult to understand why the FCC continues to consider this option.”

Tauke, along with several other phone and cable companies have asked the Commission to turn the matter over to Congress.  Tauke referenced the industry-backed effort that secured nearly 300 signatures from members of Congress opposing reclassification.

But industry critics contend turning the matter over to a polarized Congress would represent a delay at best.  At worst, it could open the door to even more industry-backed, campaign contribution-fueled deregulation.

“There is a real urgency to this because right now there are no rules of the road to protect consumers from even the most egregious discriminatory behavior by telephone and cable companies,” said Markham Erickson, executive director of the Open Internet Coalition, which includes Internet heavyweights like Google and Amazon.com.

Aparna Sridhar, Free Press’ policy counsel said, “The FCC’s Third Way proposal presents a measured response to a problem created by a Comcast lawsuit: Without restoring its authority over broadband, the Commission won’t be able to bring broadband to rural and low-income Americans or promote policies that encourage innovation, creativity, free speech and job creation online. These are goals that we can all agree on, and we support the Commission’s effort to achieve them by first establishing a sound legal foundation for its policies.”

Republican commissioners largely adopted the broadband industry position that any additional regulation would harm investment and hurt consumers.

“I recognize that industry alone will not solve every challenge and no commercial market is perfect, but I fear that a more proactive broadband regulatory approach would adversely affect consumers, competition, and investment,” said Republican Commissioner Meredith Baker, who voted against the proposal.

At least one Republican congressman went all out for the industry in a letter to Genachowski that accused him of engaging in a “blind power grab.”

“Despite overwhelming opposition within a Congress that possesses the actual authority that the FCC covets, the Commission now inexplicably appears poised on Thursday to take another misguided leap towards its investment-suffocating attempt to regulate broadband providers as common carriers,” Rep. Fred Upton (R-Michigan) wrote.

Upton counts AT&T among his top-five contributors, giving the congressman and his leadership PAC $20,000.  Upton also accepted $15,000 from the National Cable & Telecommunications Association, $10,250 from Verizon, $10,000 from Comcast, and $7,500 from Deutsche Telekom, owner of T-Mobile.

Despite all the rhetoric, at least one carrier was forced to live under most of the rules Genachowski proposes for all of America’s broadband providers, with little difficulty.  AT&T agreed to maintain a Net Neutral policy from 2006-2009 as part of its merger agreements with SBC and BellSouth.  While doing so, the company increased investments in deploying its IPTV service U-verse, which included better broadband service for U-verse customers.

Stop the Cap! will provide detailed instructions on how to submit comments to the FCC as part of today’s Notice of Inquiry soon and will hopefully have video of today’s event up shortly.