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Deregulation Allows Lifeline/USF Fraud to Run Rampant; Tens of Millions Fund Lavish Lifestyles

Pinellas County Sheriff’s Office released this mug shot of Leonard I. Solt, 49, of Land O’Lakes, one of three people accused of defrauding the federal Lifeline program out of more than $32 million.

The Pinellas County Sheriff’s Office released this mug shot of Leonard I. Solt, 49, of Land O’Lakes, one of three people accused of defrauding the federal Lifeline program out of more than $32 million.

A lack of robust state oversight of independent contractors and resellers may have cost the Universal Service Fund and nationwide Lifeline program up to $1 billion in waste, fraud, and abuse.

This month, three men were accused of stealing more than $32 million in Universal Service Fund (USF) money that supported lavish lifestyles including the purchase of multiple luxury automobiles. The federal government wants the money back.

Leonard I. Solt, 49, of Land O’Lakes, Fla.,Thomas Biddix, 44, of Melbourne, Fla. and Kevin Brian Cox, 38, of Arlington, Tenn., all face federal criminal charges for allegedly padding the number of customers signed up for Lifeline phone service through five companies all connected to the men: American Dial Tone, Bellerud Communications, BLC Management, LifeConnex Telecom and Triarch Marketing.

In some cases, Lifeline cell phone service was completely subsidized by USF funding, allowing customers to sign up for free cell phone service. Average Americans cover the costs of the program through a surcharge on monthly phone bills.

The indictment charges the defendants with one count of conspiracy to commit wire fraud and 15 substantive counts of wire fraud, false claims and money laundering.

In an 18-month period from 2009 to 2011, the phone companies obtained more than $46 million through the Lifeline program.

Regulators have been suspicious of the companies and the men who ran them since at least 2010 when the Florida Public Service Commission noticed a dramatic spike in Lifeline reimbursement requests from Associated Telecommunications Management Services, LLC., the parent company of the five entities. The Florida PSC accused AMTS of misrepresenting customer enrollment when claiming reimbursement. It was not until June 2011 that the Florida PSC approved a settlement of $4 million from AMTS and an agreement to stop doing business in the state.

bellerudThe case illustrated several ostensibly-independent companies were created to market service across Alabama, Arkansas, Florida, Georgia, Indiana, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, and Wisconsin. Many had ties back to AMTS management. Despite the Florida settlement, the firms continued to do business in multiple states. Many of the states involved have deregulated the telephone business and have cut staff at state agencies tasked with oversight issues.

By the time the federal government moved in to prosecute, the three men had used USF funds to buy a private jet, a 28-foot boat and six luxury cars, including an orange Lamborghini, a red-bronze Chevrolet Corvette, a black Cadillac Escalade, a Chevrolet Suburban limo, a black Mercedes Benz S63 and a blue Audi R8.

free planLast week, government agents seized the vehicles from Biddix’s Melbourne-based pawn shop, Outdoor Gun and Pawn.

The Wall Street Journal reported in 2013 that the FCC’s own data showed that more than 40% of the six million subscribers at five of the program’s top carriers were either ineligible or failed to show that they qualified for subsidized service. As more independent companies win authorization to start pitching Lifeline landline and mobile phone service to the poor, the cost of the program has skyrocketed to $2.2 billion last year, up from $819 million four years earlier.

The companies are reimbursed for providing service, providing an incentive to sign up as many as possible.

In Alaska, a GCI subsidiary, Alaska DigiTel hired a marketing company to help it sell Lifeline cell phone service. The company quickly began signing up patients in hospitals, using hospital addresses as their residence. It also encouraged applicants to list phony addresses. For four years, GCI profited from questionable  reimbursements filed with the FCC. GCI finally agreed to pay a $1.5 million settlement that includes no admission of liability.

Other providers simply used telephone directories to collect names and mailing addresses of “customers” and sent them unsolicited cell phones for which they requested reimbursement.

An Oklahoma provider that regulators suspect got exceptionally greedy allegedly signed up so many Oklahoma residents to Lifeline service, the state is likely to exhaust the supply of phone numbers remaining in the 405 area code sooner than expected.

Providers sometimes targeted customers disconnected for non-payment.

True Wireless received nearly $46 million under the program in 2012, bringing questions from Oklahoma’s Corporation Commission as to whether enrolling that many residents was mathematically possible. A cursory review found some customers had signed up multiple times in violation of federal rules.

In Wisconsin, the state Public Service Commission eventually revoked Midwestern Telecommunications Inc.’s ability to receive Lifeline funding after its overworked staff discovered MTI was mailing phones to customer that never requested them, billing the USF Fund for reimbursement. Some turned out to be children.

The scheme eventually began to unravel when a former Public Service Commission staffer received an unsolicited Lifeline phone. The alleged fraud was so great, MTI went from receiving 1% of Lifeline reimbursements in Wisconsin during the second quarter of 2010 to 33% of disbursements in the same quarter the following year.

The fraud also extends to Lifeline recipients, some who have bilked the program for free phones. A review of the Lifeline customer database revealed many customers had multiple Lifeline accounts, including some sent more than 10 free phones that were later reportedly resold on street corners.

Nationally, the $1.8 billion Lifeline Program subsidized phone service last year for 14.5 million low-income customers.

Customers are usually eligible if they are already enrolled in income-based programs such as Medicaid, food assistance or public housing, or if household income falls below 150 percent of federal poverty guidelines.

[flv]http://www.phillipdampier.com/video/WSJ Lifeline Fraud 2-18-13.flv[/flv]

WSJ’s Spencer Ante has details of a $2.2 billion government program to give cell phones to poor people that resulted in phones winding up in the hands of people ineligible for the program. (1:13)

New York Regulators Could Derail Comcast-Time Warner Cable Merger

Gov. Cuomo

Gov. Cuomo

New York State is hardly overwhelmed with excitement over the merger of the nation’s largest and second-largest cable operators and is taking steps to give regulators enough power to derail the merger.

New York Governor Andrew Cuomo has decided the state will not be a bystander as the $45 billion deal is reviewed by federal regulators and is seeking new powers for the state’s Public Service Commission that could force Comcast and Time Warner Cable to prove their merger is pro-consumer.

The New York Post reports the new approach would be the opposite of current rules that force the PSC to carry the burden of proof that a deal hurts the public interest.

“[The proposed changes] are very important arrangements, and the state has a valid role in making sure that the consumer is protected,” Cuomo said at the State Museum in Albany.

A source told the newspaper the rules change “could essentially kill the deal.”

comcast twcSince the federal government deregulated the cable industry in the 1990s, state and local officials have had little oversight over cable service and pricing, but in many states regulators still have a voice in mergers and other business deals.

The Cuomo Administration denied the rule changes were specifically aimed at Comcast, claiming that the state was simply mirroring the type of regulations impacting gas and oil companies doing business in New York.

If the deal fails to win approval in New York, it would mean Comcast could not assume control of Time Warner Cable’s lucrative franchises in New York City and most of upstate New York. Analysts speculate Comcast is especially interested in aligning its operations in northern New Jersey with those of Time Warner Cable in New York — both part of the largest television market in the country.

nys pscSo far, Comcast does not seem concerned about Cuomo’s proposal.

“We are confident that the pro-competitive, pro-consumer benefits like faster Internet speeds and improved video options resulting from the transaction are compelling and will result in approval from the state,” Comcast said in a statement, adding that it looks forward to “presenting the multiple consumer benefits” of the deal for New Yorkers.

Reuters reports Florida, Indiana and Pennsylvania — home state for Comcast’s corporate headquarters — will also be taking a closer look at the merger.

Florida will be coordinating with U.S. Department of Justice’s anti-trust officials to review the deal.

“We are part of a multistate group reviewing the proposed transaction along with the U.S. DOJ Antitrust Division,” the Florida attorney general’s office said in an email.

Indiana is studying the impact of the merger on its state, and Pennsylvania promised an “independent review.”

The attorneys general group is focused on broadband instead of cable television in assessing the $45.2 billion deal, according to a source familiar with the effort who was not authorized to speak on the record.

Comcast’s Capitol Hill Cash Dump: Committees Overseeing Time Warner Merger Getting Big $

comcast stormComcast is dumping a blizzard of cash on Capitol Hill in a late winter storm of lobbying to win approval of its $45 billion buyout of Time Warner Cable.

Politico reports Comcast’s money is bipartisan, with generous checks going into the campaign coffers of Texas Republican Ted Cruz and Illinois Democrat Dick Durbin. In fact, the news site reports Comcast has donated to almost every member of Congress who has a hand in regulating the cable company.

In fact, the only three members of the Senate Judiciary Committee that have not received a contribution from Comcast are Sens. Al Franken (D-Minn.), Mazie Hirono (D-Hawaii), and Jeff Sessions (R-Ala.)

That Franken did not receive any Comcast cash comes as no surprise after the senator sent his supporters e-mails blistering the merger.

“Comcast reportedly has an army of over 100 lobbyists ready to swarm Capitol Hill and whose goal is to push this through,” Franken wrote. “Their top priority is Comcast’s bottom line — not whether this deal will be good for consumers. There’s also a pretty cozy relationship between Comcast and the regulators that will evaluate this deal, which I find troubling.”

When Politico asked members of Congress whether the generous contributions from the cable giant would influence their thinking about the merger deal, none had any comment.

It’s much the same story in the House of Representatives, according to Politico:

Comcast spreads the cash around.

Comcast spreads the cash around.

On the opposite side of the Capitol, the House Judiciary Committee is readying another hearing on Comcast — and many of its members also are familiar with the company’s financial support. Chairman Bob Goodlatte (R-Va.), for example, has received $15,000 this cycle from Comcast, some for his leadership PAC and the rest for his personal campaign.

The House Energy and Commerce Committee and its Senate counterpart so far haven’t scheduled their own reviews of the new Comcast-Time Warner Cable deal. But both panels do regulate Comcast by way of their broad jurisdiction over Internet, cable and telephone issues, and they have been canvassed almost entirely by Comcast contributions. The company has given to 50 of 54 of the House committee’s Democrats and Republicans, donating either to their reelection campaigns or their leadership PACs, according to a POLITICO analysis of campaign finance data from Jan. 1, 2013 to Jan. 31, 2014. And Comcast has donated in some way to 20 of 24 lawmakers on the Senate Commerce, Science and Transportation Committee.

There has been a total of $12,500 in checks for Walden, the leader of the telecom subcommittee, to both his personal coffers and leadership PAC. Comcast also has given $2,500 to Rep. Frank Pallone (D-N.J.), a contender to lead Democrats on the full Energy and Commerce panel following the retirement this year of California Rep. Henry Waxman — another recipient of Comcast support.

Albert Foer, president of the American Antitrust Institute, which opposes the merger, says Comcast’s contributions began long before the merger deal, but that is a well-considered strategy.

It’s “proactive giving,” said Miller, “so that when a corporation needs access in a time of trouble, investigation or oversight, they have already built the quote-unquote relationships they need to soften or make their arguments to a sympathetic audience.”

Read Between AT&T’s Landlines: What They Don’t Say Will Cost Kentucky, Other States

Phillip "Another year, another AT&T deregulation measure" Dampier

Phillip “Another year, another AT&T deregulation measure” Dampier

It’s back.

It seems that nearly every year, AT&T and its well-compensated fan base of state legislators trot out the same old deregulation proposals that would end oversight of basic telephone service and allow AT&T (and other phone companies in Kentucky) to pull the plug on landline service wherever they feel it is no longer profitable to deliver.

This year, it’s Senate Bill 99, introduced once again by Sen. Paul “AT&T Knows Best” Hornback (R-Shelbyville). Back in 2012, Hornback disclosed AT&T largely authors these deregulation measures and he introduces them on AT&T’s behalf. In fact, he’s proud to admit it, telling the press nobody knows better than AT&T what the company needs the legislature to do for it.

“You work with the authorities in any industry to figure out what they need to move that industry forward,” Hornback said. “It’s no conflict.”

While Hornback moves AT&T forward, “his” bill will move rural Kentucky’s best chances for broadband backwards.

AT&T always pulls out all the stops when lobbying for its deregulation bills. In Kentucky, AT&T has more than 30 legislative lobbyists, including a former PSC vice chairwoman and past chairs of the state Democratic and Republican parties working on their behalf. It has spent over $100,000 in state political donations since 2007.

The chief provisions of the bill would:

  • End almost all oversight of telephone service by the Public Service Commission anywhere there are more than 15,000 people living within a telephone exchange’s service area;
  • Give Kentucky phone companies the right to disconnect urban/suburban basic landline phone service and replace it with either wireless or Voice over IP service;
  • Allow rural customers to keep landline service for now, but also permits AT&T and other companies to effectively stop investing in their rural wired networks.

yay attThis year, AT&T apparently conceded it was just too tough to convince the legislature to let them disconnect hundreds of thousands of rural Kentucky phone customers at the company’s pleasure, so this time they have permitted rural wired service to continue, with some exceptions that make life easier for AT&T.

First, the end of oversight of telephone service means customers in larger communities in Kentucky will have no recourse if their phone service doesn’t work, is billed incorrectly, is disconnected during a billing dispute, or never installed at all. The PSC has traditionally served as a last resort for customers who do not get satisfaction dealing with the local phone company directly. PSC intervention is taken very seriously by most phone companies, but the state agency will be rendered almost toothless under this bill.

Second, although existing rural phone customers would be able to keep their basic landline service (for now) under this measure, nothing prevents AT&T from marketing alternative wireless phone service to customers experiencing problems with their existing service. Verizon has attempted that in portions of upstate New York, where telephone network deterioration has led to increased complaints. In some cases, Verizon has suggested customers switch to wireless service instead of waiting for phone line repairs which may or may not solve the problem. New rural customers face the possibility of only being offered wireless or alternative phone services.

Third, provisions in the bill give AT&T and other companies wide latitude to offer wireless or Voice over IP alternatives to landline service with little recourse for customers who only later discover these alternatives don’t support faxes, medical or security alarm monitoring, dial-up Internet, credit card processing, etc.

Fourth, the bill eliminates any requirement imposed upon broadband service in existence as of July 15, 2004. In fact, the measure specifically defines both phone and broadband service as “market-based and not subject to state administrative regulation.” That basically means service will be unregulated.

AT&T's wireless home phone replacement

AT&T’s wireless home phone replacement

Here are some real world examples of where S.B. 99 could trip up consumers:

  1. An elderly Louisville couple living the summer months in Louisville discover their phone service has been switched to the U-verse platform over the winter as AT&T seeks to decommission its deteriorating landline network in the neighborhood. S.B. 99 offers customers a 30-day opt out provision upon first notification, allowing a customer dissatisfied with the alternative service the right to switch back to their landline. But this couple was in Florida during the 30-day window, did not receive the notification to opt out in time to act, and are now stuck with U-verse. Unfortunately, the home medical monitoring equipment for his pacemaker does not work with Voice over IP phone service. This couple’s recourse: None.
  2. A customer moves into a new home currently served by AT&T’s wireless home phone replacement service. The customer doesn’t like the sound quality of the service and wants a traditional landline instead. Her recourse: None.
  3. A retired couple uninterested in broadband service or television from AT&T U-verse suddenly discovers AT&T wants to raise prices on landline phone service, but offers savings if the couple agrees to sign up for U-verse. Instead of paying a $25 monthly phone bill, the couple is now being asked, on a fixed income, to pay $100 a month for services they don’t want or need. Their recourse: They can appeal to keep their landline if they meet the aforementioned deadline, but they have no recourse if AT&T raises rates for basic phone service to make its discounted bundled service package seem more attractive.

Hood Harris, president of AT&T Kentucky, follows the same playback AT&T always uses when pushing these bills by framing its argument around landline telephone service regulation, which is an easy sell for cell phone-crazy customers who have not made a landline call in years:

Harris

Harris

Some of Kentucky’s laws that regulate our phones were written before cable television, cell phones, the Internet or email existed.

Because of these outdated laws, providers like AT&T must sink resources into outdated technology that could be invested in the modern broadband and wireless technology consumers want and need.

Every dollar invested in old technology is a dollar not being invested in speeding up the build out of new technology across the commonwealth.

It’s no longer the 19th century coming into your home over the old, voice-only phone network that was put in place under now-outdated laws. It’s the 21st century coming into your home over modern networks. While technology has changed dramatically for the better in just the past few years, our laws have not.

Despite what you may have heard, SB 99 will not remove landlines from rural homes or businesses.

Instead, this legislation puts those customers in charge of deciding which communications services they want and need. If you are a rural customer, for example, you may choose to join the nearly 40 percent of Kentuckians who already have moved on from landline home phones and gone only with a wireless phone, or you may choose a landline phone that’s provided over the Internet (known as Voice over Internet Protocol, or VoIP), or you may choose both a VoIP and a wireless service.

But you do not have to — you can keep your existing landline phone if you like. Under SB 99, the choice is yours.

It’s seems like a logical argument, until you read between the lines. Harris implies that those old-fashioned laws governing landlines you don’t have anymore are slowing down AT&T from bringing about a Broadband Renaissance for Kentucky. If AT&T only was freed from the responsibility of patching up its copper wire phone network, it could spend all of its time, money, and attention on improving cell phone service and bring broadband to everyone. Harris promises every resident will have a choice to get the service they want — wireless or wired — as long as you remember he is only talking about basic phone service, not broadband.

If your community isn't highlighted on this map, AT&T has a wireless-only future in store for you.

If your community isn’t highlighted on this map, AT&T has a wireless-only future in store for you.

Harris avoids disclosing AT&T’s true agenda. The company has freely admitted to shareholders it wants to scrap its rural wired network, now considered too costly to maintain for a diminishing number of customers. Unlike independent phone companies like Frontier, AT&T has been in no hurry to upgrade these rural customers for broadband service. AT&T has not even bothered to apply for federal broadband funding assistance to defray some of the costs of extending DSL to its rural customer base. With no possibility of buying broadband from AT&T, customers have little incentive to keep wired service if a cell phone will do. But decommissioning landline service in rural Kentucky guarantees these customers will probably never receive adequate broadband.

The "long term cost reduction" AT&T mentions above is for them, not for you.

The “long-term cost reduction” AT&T mentions above is for them, not for you.

AT&T claims it will invest the savings in a wireless broadband network for rural customers, but as any smartphone owner will attest, AT&T’s wireless service is much more expensive than traditional phone service and its data plans are stingy and very expensive. Customers who can buy DSL from AT&T pay as little as $14.99 a month for up to 150GB of usage. A wireless data plan with AT&T for a home computer or notebook starts at $50 a month and only provides 5GB of usage before customers face a $10 per gigabyte overlimit fee. Which would you prefer: paying $14.99 for 150GB of usage with AT&T DSL or $1,500 for the same amount of usage on AT&T’s wireless network?

AT&T’s claims it will expand broadband as a result of not having to spend money on its landline network are specious. In fact, regardless of whether Kentucky passes S.B. 99 or not, AT&T has already embarked on its last known U-verse expansion. Project Velocity IP (VIP) devotes $6 billion to expanding U-verse to 57 million homes, reaching 75% of customer locations by the end of 2015. For the remaining 25% of customers, mostly in rural areas, AT&T’s plan isn’t to spend more money on improved wired service. Instead, it will build out its wireless network to serve the remaining customers with its LTE wireless broadband service — the same one that costs you $1,500 a month if you use 150GB.

Wireless is a cash cow for AT&T, so even saddled with its landline network, the company still spends the bulk of its investments on the wireless side of the business. Project VIP could have devoted all its resources to bringing U-verse to a larger customer base, but it won’t. AT&T sees much fatter profits spending $14 billion now to expand its wireless 4G LTE network and collect a lot more money later from its rural Kentucky customers.

Kentucky residents who don’t have U-verse in their area by the end of 2015 are probably never going to get the service, with or without S.B. 99. So why support a measure that delivers all the benefits to AT&T and leaves you sorting through the fine print just to keep the service you have now at a reasonable price. In every other state where AT&T has won deregulation, it raises the rates with no corresponding improvement in service.

Just how bad can AT&T’s wireless home phone replacement be? Just look at their disclaimers:

AT&T Wireless Home Phone is not compatible with home security systems, fax machines, medical alert and monitoring services, credit card machines, IP/PBX Phone systems, or dial-up Internet service. AT&T’s fine print on its website.

“AT&T’s wireless services are not equivalent to wireline Internet.” Wireless Customer Agreement, Section 4.1.

“WE DO NOT GUARANTEE YOU UNINTERRUPTED SERVICE OR COVERAGE. WE CANNOT ASSURE YOU THAT IF YOU PLACE A 911 CALL YOU WILL BE FOUND.” (All caps in original). Section 4.1.

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.

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