Home » telecom » Recent Articles:

Special Report — Astroturf Overload – Broadband for America = One Giant Industry Front Group

"We're going to need another roll."

"We're going to need another roll."

Astroturf: One of the underhanded tactics increasingly being used by telecom companies is “Astroturf lobbying” – creating front groups that try to mimic true grassroots, but that are all about corporate money, not citizen power. Astroturf lobbying is hardly a new approach. Senator Lloyd Bentsen is credited with coining the term in the 1980s to describe corporations’ big-money efforts to put fake grassroots pressure on Congress. Astroturf campaigns generally claim to represent huge numbers of citizens, but in reality their public support is minimal or nonexistent. — Common Cause’s Wolves in Sheep’s Clothing Part II: More Telecom Industry Front Groups and Astroturf.”

The telecommunications industry has gone all out with a new super-sized front group claiming to “work to bring the Internet to everyone.”  The so-called Broadband for America (BfA) Coalition launched a new website, Broadband for America, which is completely infested with industry players and groups they call “independent consumer advocacy groups,” but are in reality mostly astroturfers themselves.  More than 100 corporate providers and special interest front groups make up the BfA, which they brazenly claim “represent the hundreds of millions of Americans who are literally connected through broadband.”

Of course, what is missing from this mess are the hundreds of millions of actual American consumers.  They aren’t on the list.  Also missing after checking more than 100 BfA member websites is any press push to notify their members they are now a part of this group.  In fact, none of the so-called public interest websites seemed at all interested in promoting their new found friends.

The BfA wants you to think the industry party list is a strength, not a weakness:

The range of members of BfA is evidence of the importance which is being placed on the issues of broadband availability and broadband adoption. It is also evidence of BfA’s commitment to being a full participant on behalf of all stakeholders to provide a central clearinghouse for the latest thinking, the most advanced assessments, and the widest variety of views and opinions on the future of broadband in America.

That’s a word salad that can be condensed down considerably to: The Mother of All Astroturf Front Groups.

A comprehensive guide to the members of the BfA can be found below.  It was developed from extensive research into the background and financing of many of these groups, as well as their membership in classic astroturf groups that are run against consumer interests.

Actiontec Electronics, Inc.
ADC Telecommunications, Inc.
Advanced Digital Broadcast
Alloptic
American Agri-Women
American Association of People with Disabilities
American Council on Renewable Energy
Americans for Technology Leadership
ARRIS
AT&T
BendBroadband
BeSafe
BigBand Networks, Inc.
BTECH Inc.
Cablevision Systems Corporation
CBM of America, Inc.
CenturyLink
Charles Industries, Ltd.
Child Safety Task Force
Cisco
CoAdna Photonics, Inc.
Comcast
CommScope, Inc.
Condux International, Inc.
Consumers First
Corning Incorporated
Cox Communications
CTIA The Wireless Association
DC-Primary Care Association
Dominican American National Roundtable
Enhanced Telecommunications Inc
Fiber to the Home Council
FiberControl
Global Crossing
Hispanic Leadership Fund
Independent Technologies Inc.
Independent Telephone and Telecommunications Alliance (ITTA)
International Association for K-12 Online
Intertribal Agriculture Council
Itaas Inc.
Jewish Energy Project
Latinos in Information Science & Technology Association
Livestock Marketing Association
LookBothWays
MANA (A National Latina Organization)
Motorola
MRV Communications, Inc.
National Association of Manufacturers
National Association of Black Telecommunications Professionals
National Black Chamber of Commerce
National Cable & Telecommunications Association
National Caucus and Center on Black Aged
National Disease Cluster Alliance
National Grange
National Puerto Rican Coalition, Inc.
NDS Limited
Net Literacy
NSG America, Inc.
Occam Networks, Inc
OFS Fitel, LLC
On Trac, Incorporated
PECO II, Inc.
People & Technology
Preformed Line Products, Inc.
Prysmian Communications Cables and Systems USA, LLC
Quanta Services, Inc
Qwest
RetireSafe
Seachange International
Sheyenne Dakota, Inc.
Silver Star Communications
Sjoberg’s, Inc
Small Business & Entrepreneurship Council
SNC Manufacturing Company, Inc.
Stop Child Predators
Sumitomo Electric Lightwave
Sunrise Telecom Inc
SureWest Communications
Suttle Apparatus Corporation
Telecommunications Industry Association
Telework Coalition
The Latino Coalition
Time Warner Cable
United States Distance Learning Association
United States Telecom Association
US Cable Corporation
US Cattlemen’s Association
US Chamber of Commerce
US Internet Industry Association
US Mexico Chamber of Commerce
Verizon
Vermeer Manufacturing Company
Windstream Corporation

When The National Cable & Telecommunications Association is on your member list, along with giant providers like AT&T and Verizon, you know we’re far, far away from defining this group as “pro-consumer.”

Over the last week pouring across websites and independent documentation, I encountered a few particularly brazen astroturf groups and the individuals that run them whose names kept coming up time and time again.

One of the more interesting groups that caught my eye was the Child Safety Task Force.  What could be wrong with a group like that?  Who could possibly ever find fault with a group that sounds like they are dedicated to unyielding protection of our children.

But when one visits their website, some cautionary lights begin to flash when you read their Mission Statement (italics mine):

“The Child Safety Task Force believes that legislation and regulatory decisions concerning children’s safety measures should be grounded in principles of good-governance and sound science.”

Perhaps I have been doing this too long, but the portions in italics sound suspicious.  A child safety group whose primary task is involvement in public policy.  Uh oh.  That smells like lobbyist.  The enigmatic “good-governance and sound science” sounds like code words for pro-industry protections from consumer groups.

Indeed, group president Robert K. Johnson is the Zelig of astroturfers.  He’s everywhere.  He was president of the now-defunct Consumers for Cable Choice, a front group for AT&T and other providers advocating for telco TV and strident opposition to Net Neutrality.  Amusingly, Johnson’s group broadened its focus by dropping the word “cable” from its title and renaming themselves Consumers for Competitive Choice (C4CC).  New name, same old notorious astroturfing.

Johnson’s idea of “child safety” is to poo-pooh the risk of phthalates in children’s toys.  I haven’t found too many consumer groups adopting that kind of pro-plastics industry position.  Johnson testified under the C4CC moniker before the House of Delegates, Maryland General Assembly with this in his opening statement:

“A case in point is the effort by some states to include phthalates in legislation limiting the amount of lead and other proven carcinogens in children’s’ toys. The effort is misplaced and ultimately detrimental to consumers.”

Apparently not satisfied that C4CC was pro-child safety-sounding enough, Johnson’s Child Safety Task Force & C4CC have linked to one another as resources without clearly disclosing their common ties.

Johnson also founded Consumers’ Voice, which Verizon trashed in 2002: “Consumers’ Voice . . . should really be named `AT&T’s Voice.’ At a recent National Conference of State Legislatures meeting, a representative from this group admitted that it is entirely supported by AT&T. Moreover, Consumers’ Voice has no state chapters or affiliates. Johnson actually is an AT&T hired gun.” – William R. Roberts, president, Verizon Maryland, Inc., (Cumberland Times-News, August 22, 2002.) Another BfA member, Consumers First (California), could easily be confused with the former, but no matter, it receives funding from AT&T (and Verizon) too, and belonged to Johnson’s now defunct Consumers for Cable Competition.

Another astroturfer paradise comes courtesy of the LawMedia Group (LMG), a secretive Washington DC public affairs firm. The firm’s website says it “unites the worlds of law, communications, strategic counseling and crisis management into seamless campaigns for Fortune 100 companies, trade associations, start-ups and non-profits.”  Ads for LMG describe its services as including “government relations” (lobbying), “grassroots lobbying,” “issue/initiative/petition management,” “media production” and “opposition research.”

LMG has a nasty habit of ghostwriting op-ed pieces on behalf of third parties, occasionally without their knowledge, and send them in for publication as supposedly written by those individuals.  Last summer, LMG submitted a column it wrote on behalf of Mel King, a Boston-area community organizer and staunch Net Neutrality advocate that turned out to oppose Net Neutrality.  King admitted that LMG was involved and refused to say whether “he was paid for the use of his name,” reported CNET News.

LMG reportedly has two major clients of interest to our readers – Comcast, the nation’s largest cable operator and Microsoft.  The former is looking for cable and broadband industry-friendly advocacy (opposition to Net Neutrality, favoring government “hands off” policies governing cable operators and broadband) and the latter has particularly been interested in Google bashing, especially surrounding a Yahoo-Google advertising deal.

One of LMG’s specialties is reportedly to co-opt groups that most would assume would have no direct interest in the issues its clients hire the PR firm to promote.  Yet suddenly these non-aligned groups  spring forth with amazingly detailed, uniform advocacy for LMG’s clients’ positions in the media, to members of Congress, and even in submitted comments to regulatory agencies.

Would you find it curious that in 2008 The American Corn Growers Association would suddenly find the need to rush a letter to the Justice Department urging them to launch an investigation into Google’s ‘search monopoly?’  Apparently the harvest was finished and they had free time on their hands.  But they only started the trend, because similar letters on the letterheads of the League of Rural Voters and the Latinos in Information Science & Technology Association also followed.  The latter just happens to also turn up as a member of the BfA.

That’s no coincidence.  BfA member Intertribal Agriculture Council, which is supposed to advocate for the wise stewardship of Native-American lands for the benefit of its people, suddenly decided to throw its two cents into last year’s Sirius-XM Radio merger debate, publicly endorsing the deal and urging the FCC to approve it. That was also an action item on the LMG priority list, according to Sourcewatch. They were joined by several other groups that common sense would suggest wouldn’t spend five minutes pondering this transaction.  Among them include (again) the League of Rural Voters and the Latinos in Information Science & Technology Association.  Some other BfA members also chimed in: the National Black Chamber of Commerce, The Latino Coalition, and the American Association of People With Disabilities.

The Latino Coalition left a lot of heads scratching in 2007 when it advocated against bans on exclusive cable providers in rental properties.  Consumers moved into apartment buildings and found they had to take whatever the landlord made available — no satellite TV or competing providers allowed.  Consumer groups howled demanding these exclusive agreements be banished to give consumers choices for subscription television.  The Latino Coalition told the Los Angeles Times that was a bad idea, and anti-consumer.

The Latino Coalition, a nonprofit advocacy group, warned the FCC that prohibiting exclusive contracts could leave minority and low-income residents with higher bills or no service at all.

“The advantages of these exclusive contracts are important selling points for apartment buildings in urban neighborhoods where residents wouldn’t otherwise have the ability to negotiate the best price for cable TV or broadband services,” Latino Coalition President Robert G. de Posada wrote to the FCC.

It comes as no surprise de Posada also opposed Net Neutrality.  He criticized the concept passionately, telling EbonyJet magazine in 2007 it represented “over regulation of the Internet.”  Net Neutrality would, according to de Posada, “stifle rather than facilitate entrepreneurism.”

Among the Coalition’s corporate partners: AT&T and Verizon.  The former’s logo appears at the bottom corner of the The Latino Coalition home page.

Apparently astroturf coordinators like to use some of the same groups for different issues.  This past May, the Intertribal Agricultural Council had a new-found common cause with, of all things, small-jet operators opposed to a proposal to shift some of the airline carriers’ federal tax burden onto small jet aviators.  Jets fly over farmland, and some might even cross over reservations, so I guess that’s a legitimate priority item for a Native American group like IAC, right?

The IAC joined forces with The Alliance for Aviation Across America (AAAA), a group run by LMG according to Sourcewatch.  But they were not alone.  Two more BfA members coincidentally also turn up as improbable members of the AAAA: the National Grange of the Order of Patrons of Husbandry and U.S. Cattlemen’s Association.

Astroturf Warehouse Club: We lie in bulk and pass the BS on to you!

Astroturf Warehouse Club: We lie in bulk and pass the BS on to you!

The practice of bringing non-aligned groups into public policy debates, particularly those involving minorities, can be a public relations miracle worker, especially for lobbying projects that don’t exactly look consumer friendly.  Often, minority public interest group involvement is highlighted by lobbyists appealing to public officials who can make or break a merger deal or vote up or down on regulatory matters.  If Native Americans, Latinos, African Americans, and the disabled are against Net Neutrality or for Internet Overcharging schemes, maybe there is something elected officials are missing.

In reality, all they frequently miss is the public relations lobbying machine in Washington that runs the show.  Even worse is when legitimate consumer voices are crowded out because all of the chairs set out for real consumers are occupied by astroturf groups pretending to represent consumer interests.

One group, the National Caucus and Center on Black Aged, was another oddity in the Broadband for America member roster, until one started taking a closer look at who serves on the group’s Board of Directors.  The connection to Verizon was immediately obvious.  B. Keith Fulton, a Board member, is also President of Verizon West Virginia.  Fulton joined Verizon in 2004 as vice president of strategic alliances and corporate responsibility, where he led a Washington, D.C.-based team that worked with more than 100 national organizations on communications related public policy issues.

But the connections with big telecom didn’t stop there.  Jarvis C. Stewart, chairman, is also Managing Partner at Stewart Partners LLC, a Washington, DC Public Relations firm.  A 2006 press release admits a further connection: “Stewart Partners currently manages the federal legislative and public affairs agendas of global industry titans such as […] Verizon.”

Muckety, which graphically illustrates public/private connections shows yet more involvement, this time with William Clyburn, Jr., who also serves on the group’s Board. It maps links between Clyburn and the U.S. Telecom Association and AT&T through Clyburn Consulting.

Clyburn Consulting’s website states:

“At Clyburn Consulting, we guide telecommunications stakeholders through the federal legislative process.  We provide strategic analyses of the technical aspects as well as the political implications of telecommunications policy debates.  The impending updates to our telecommunications laws will have a major impact for years to come on how we process voice, video, and data.  Clyburn Consulting is at the forefront of shaping the future of telecommunications. Clyburn Consulting has been instrumental in persuading Members of Congress to support major legislation for a Fortune 500 telecommunications firm (guess who? –PD).  William Clyburn is integrally involved in garnering support by not only providing access to Congressional offices for the client, but also by substantively engaging senior staff on the technical issues.”

On June 8, 2009, the National Caucus and Center on Black Aged wrote the FCC about the national broadband strategy.  Without disclosing any connections to the telecommunications industry, the group advocated:

Unfortunately too many seniors are not aware of these critical, and often life-saving, benefits. In order for more seniors to see the importance of having broadband, barriers must remain low for adoption. Only 15% of seniors cite price as the reason why they have not brought broadband into their homes. Currently, private sector network providers are investing billions of dollars to build out and maintain broadband infrastructure. This investment has enabled affordable prices. If the FCC’s broadband plan does not maintain incentives for the private sector to continue to invest, consumers will see fewer options and possibly higher prices.

We hope that the FCC will provide for continued investment on the part of private sector participants while working to bring broadband to every household in the country. Our nation’s African American seniors have so much to gain from broadband and they deserve to experience its benefits.

When some of these groups testify in hearings or submit written comments “representing consumer interests” when they are in fact acting like sock puppets backed with industry money, too many legislators may be persuaded to support an industry position thinking it’s what consumers really want.

Therefore, it’s important to provide additional disclosure about the groups, companies, and organizations that attempt to claim to speak on your behalf, the consumer broadband user.

This comprehensive breakdown of the members of BfA is by no means absolutely complete.  It is based on a week’s worth of research into the groups and their ties.  As much as possible, links are provided to back up assertions made.  Some groups may have discontinued their support of individual astroturf campaigns that have since expired, but considering the fact most of them are coming back for a repeat performance, past is prologue.

Feel free to build on this work in our Comment section.  We’ll use additional information as part of an effort to construct a resource database for consumers and others at risk of being hoodwinked by the astroturf bonanza that is Broadband for America.  Don’t bother exposing them on their own site’s community forum; it has some seriously draconian rules for user participation:

General Guidelines

  • Do not post material or contact anyone to suggest your product, website or service. Posts of this kind will be considered SPAM and your account, profile and posts will be removed immediately.
  • Your account is yours alone. You are responsible for any activity created with it. If you choose to ignore this important restriction your account will be removed.
  • Signature Spam (a post that was made in hopes of showing a signature, as determined by moderators) is forbidden in all forum categories.
  • You may not post on behalf of any banned member in any public manner. This includes all forums, private messages, signatures, and e-mail features.
  • You may not use discussions to recommend, praise, or belittle other products, services, or any company without firsthand experience of those products or services. This includes companies recommending other companies.
  • If your user name is the same as your URL or company name, you may not refer to it outside the advertising forums.
  • You may not post any message that directs others to any pages at your own commercial domain, including informational pages. A commercial domain is defined as a site that receives any type of income or links to any income producing properties.
  • You may not solicit users for any project or purpose external to the forum – public, private, or commercial. Most importantly, our member base is not a resource to be “mined” by individuals, groups, or businesses, for profit or not for profit.
  • You are expected and required to read and follow the rules outlined within a category that are posted as Announcements.
  • We welcome constructive feedback, but will not tolerate excessive public posts criticizing Broadband for America staff.
  • Public posts debating these rules and/or moderators’ enforcement of such will be removed without comment.

We reserve the right to modify and amend these terms at any time without notice. It is your responsibility to remain informed of current Discuss.BroadbandForAmerica.com policies.  We further reserve our right to disable any account at any time for any reason and without notice.  If there are any rules or policies you do not understand, please contact us.  Finally, any abuse towardsBroadband for America staff and/or management in any form will result in immediate suspension of your account.

Be sure to check out our complete rundown on the members of Broadband for America.  It’s in part two of this Astroturf Special!

On A Personal Note…

Phillip Dampier October 1, 2009 Astroturf, Editorial & Site News 3 Comments

[Update: 5:13pm Friday: I hoped to have this up Thursday night, but wanted to add additional links to the article to be certain people can verify the information contained within it.  It’s on a final proofread right now and will be posted within the next two hours.]

Over the past week, I have been involved in some in-depth research on a matter that concerns me greatly — the special interest astroturfing problem.  An article that normally would have taken less than a day to write has now run close to a week, just because under every rock there is yet another special interest group, telecommunications company, or hired gun lobbyist working for what should be legitimate public interest groups.  What is even more disturbing is the apparent influence some of these groups, with yet undisclosed telecommunications company connections, have on public broadband policy, because government agencies and our elected officials do not realize they are taking input from industry-connected front groups.

The stage is being set once again this year for a public debate on issues like the National Broadband Plan, Net Neutrality, and our own battle against Internet Overcharging schemes.  Before this battle goes too far, some of the opponents working against consumer interests need to be revealed.  Therefore, a very lengthy special report is forthcoming shortly that will be required reading for any visitor to this site, so you fully comprehend what is taking place, and are well prepared to engage these groups.  We’ve already tangled with some of the astroturf groups who’ve debated us, and we’ve done so successfully.  Soon, there will be many more.  When fighting for an honest National Broadband Plan, Net Neutrality, and no Internet Overcharging schemes, this is your chance to call out the cozy little astroturfing game that has been used successfully in the past to fool legislators into believing they are doing the right thing by us, actual consumers.

I hope to wrap up work on the piece by later tonight, assuming I don’t encounter even more entanglements along the way.  This is why coverage this week has been more sparse than usual.  Hopefully after publication, you will understand why.

CRTC Runs ‘Show Trial’ Hearings Attacking Would-Be Wireless Competitor; Is CRTC Industry Trade Group or Independent Regulator?

Phillip Dampier September 30, 2009 Canada, Competition, Public Policy & Gov't Comments Off on CRTC Runs ‘Show Trial’ Hearings Attacking Would-Be Wireless Competitor; Is CRTC Industry Trade Group or Independent Regulator?
Wind Mobile

Wind Mobile

The Canadian Radio-television Telecommunications Commission (CRTC) is back in this news this week after running a dog and pony hearing at the behest of Bell, Telus, and Rogers (three of Canada’s largest incumbent telecommunications companies) pondering whether would-be wireless competitor Globalive was Canadian enough to do business in the country.

The Telecom Act specifies that all wireless phone companies must be controlled by Canadian citizens.  Toronto-based Globalive Wireless Management Corporation insists it has met the requirements of Canadian law, despite having a major percentage of its financing coming from Egyptian-based Orascom, a wireless mobile provider itself.  Globalive points to approval of its holding company business structure by Industry Canada.

Under the arrangement, Globalive would launch competitive wireless service under the brand Wind Mobile starting later this year.  Then the CRTC got involved.

Canada’s three current wireless phone companies — Bell, Telus, and Rogers, complained to the Commission that Globalive is violating the spirit of the Telecom Act and have essentially joined forces to keep Globalive out of Canada.

The CRTC was quick to respond to the incumbents’ concerns and scheduled hearings which started last Wednesday.  As expected, Globalive got hard questioning from the CRTC and the providers.  Canadian citizens looking for competitive choice weren’t on the agenda.

The Commission previously forced Globalive to publicly release more than 1,000 pages of company documents relating to its business structure, pages that were kept confidential by Industry Canada, but made available to Globalive’s existing competitors for their review.  The result was a gold mine of insight on their potential competitor’s business plan, and they used the information gleaned to argue against the company’s right to provide service.  itWorldCanada covered the response:

“I don’t know how the commission could possibly approve that deal now with that kind of capital structure,” Michael Hennessy, Telus’ senior vice-president of regulatory and government affairs said in an interview. “It would be unprecedented.”

Rogers could have gone along with the Industry Canada ruling, said Ken Engelhart, the company’s vice-president of regulatory affairs, “but when we read the documents we were just amazed. There has never been an approval like this before. The rules have always been [a telecom company] could have a major foreign shareholder, a major foreign debt holder, a major foreign strategic partner. But you could never have the same person being all three. Orascom has 65 per cent of the equity, 100 per cent of the debt and they provide the brand and all the strategic and technical skills.”

“If this is OK there’s no point having any more hearings. They should all get rubber-stamped because if this is Canadian owned and controlled, what isn’t?”

Bell concern trolled their way through written comments, ringing their hands over an ownership structure modified to address their earlier concerns is now even worse.

Anthony Lacavera, chief executive officer for Globalive Wireless Management said Globalive has every right to operate a wireless provider in Canada as he is a Canadian citizen and has control.
TMCNet’s Canadian Angle blog explains:

The biggest problem seems to come down to math.  Globalive states that Lacavera is in control, and he is a Canadian citizen.  The incumbents are complaining about the amount of ownership and possible influence that the Egyptian financial backer, Orascom Telecom, has on the Globalive company.  The way that Lacavera has explained it, the Globalive team is following all the rules while still allowing for some out of this country funding.  Here is the breakdown:

  • Anthony Lacavera owns 35 % of Globalive, and Orascom owns 65%.
  • Orascom funded over $500 Million so Globalive could pay for the wireless spectrum that they bought, and the bridge financing required for the infratructure
  • Both of these parties have agreed to replace the loans with third-party investments – as soon as it is commercially viable.

Telus and Bell suggest that Globalive and Orascom are pulling a fast one – trying to get around the legalities by setting up separate companies but still providing Orascom with a majority stake in the company, and  also with the added benefit of controlling the operations.

It shouldn’t be a big shock that Globalive was financed through another country, and as long as Globalive and Orascom commit to what they say they are going to do, there shouldn’t be any problems.

Well – still one hefty problem – the CRTC is under the influence of the incumbents.  The decisions coming from this regulatory body will provide fuel for many posts to come.

Am I the only one that sees the irony in the CRTC grilling Globalive about being influenced by outside sources?  Isn’t this the pot calling the kettle black?

The reason for all of the debate is simple enough.  Canada’s three wireless phone companies could lose one quarter of their customers to competitors like Globalive and DAVE Wireless, according to Toronto-based Convergence Consulting Group, Ltd., which released a study on the matter last week.  Without Globalive being one of those competitors, incumbent providers will likely retain more customers and more revenue.

Senator Kay Bailey Hutchison (R-Texas) Tries To Insert Net Neutrality ‘Killer Amendment’ to Spending Measure

Phillip Dampier September 23, 2009 Net Neutrality, Public Policy & Gov't 12 Comments
Sen. Kay Bailey Hutchison (R-Texas)

Sen. Kay Bailey Hutchison (R-Texas)

Senator Kay Bailey Hutchison (R-Texas), who often adopts anti-consumer positions on telecommunications policy, has written a so-called “killer amendment” that would prohibit the Federal Communications Commission from enforcing proposed Net Neutrality rules.

Her amendment, informally proposed Monday as part of a House Interior Appropriations spending measure (H.R. 2996) states:

Purpose: To prohibit the FCC from expending any funds in fiscal year 2010 to implement any Internet neutrality or network management principles, or to promulgate any rules relating to such principles.

Hutchison’s amendment has several Republican co-sponsors: John Ensign (R-Nevada), Sam Brownback (R-Kansas), David Vitter (R-Louisiana), Jim DeMint (R-South Carolina),  and John Thune, (R-South Dakota).

Hutchison released a statement explaining the amendment: “I am deeply concerned by the direction the FCC appears to be heading. We must tread lightly when it comes to new regulations. The case has simply not been made for what amounts to a significant regulatory intervention into a vibrant marketplace. These new regulatory mandates and restrictions could stifle investment incentives.”

Following the Money: Cable's Best Friends in North Carolina Get a Payday

Ensign said Net Neutrality would punish a telecommunications industry at a time when it’s managing through an economic downturn.

“Any industry that is able to thrive should be allowed to do so without meddlesome government interference that could stifle innovation,” he said.

Brownback also has a history opposing the consumer interests of his constituents.  Back in May, he penned a letter to a Stop the Cap! reader in Kansas openly favoring Internet Overcharging schemes.

Public interest groups are calling on the public to express their displeasure with the Republican senators for their opposition to Net Neutrality.

One possible explanation for the sudden, strong interest by Hutchison and other Republicans to oppose Net Neutrality can be found in their respective bank accounts.  Hutchison accepted $67,300 in campaign contributions just from AT&T, her ninth largest contributor.

Combined, AT&T donated more than $400,000 among the six Republicans opposing Net Neutrality, and one of those senators, John Thune, used to work for a DC lobbying firm that was hired by Comcast.

The details were compiled by Sam Gustin, a reporter for DailyFinance:

Over the course of his career, Sen. Sam Brownback, a Kansas Republican, has received $220,914 from “telephone utilities,” including some $83,130 from AT&T, his second-largest donor, in the form of employee and lobbyist donations to his campaign and political-action committees. Sprint Nextel has given Brownback $35,550 over the course of his career.

Two of the co-sponsors of the bill, Sen. David Vitter of Lousiana and Sen. John Ensign of Nevada, who have both seen their reputations tarnished after sex scandals, have been on the receiving end of AT&T’s largesse. AT&T and predecessor BellSouth have donated $82,050 to Vitter’s campaigns and political-action committees. And over the last four years, AT&T has donated some $61,250 to Ensign’s campaign and political-action committees. Verizon-related entities donated $46,600 to Ensign during that period.

During that time, AT&T has donated $63,750 to the campaign and political-action committees of Sen. Jim DeMint, the South Carolina Republican. AT&T is DeMint’s second-largest donor.

Sen. John Thune, the South Dakota Republican, has not received significant donations from the telecom industry since his 2006 defeat of Sen. Tom Daschle, then Senate majority leader Tom Daschle. But from 2003 to 2005, Thune served as a senior policy adviser to the D.C. lobbying firm of Arent, Fox, when its client Comcast, the largest cable company in the U.S., paid some $40,000 in fees.

[Update: Yesterday evening, Washington Post reporter Cecilia Kang reported that the Republicans were, at least for now, backing off on pushing for their amendment:

“While we are still generally opposed to net neutrality regulations, we have decided to hold off on the amendment because [FCC Chairman Julius Genachowski] approached us and we are beginning a dialogue,” said a staff member on the committee.

Hill watchers said the amendment itself represented standard operating procedure when attempting to block regulatory agency policy decisions, but characterized the Hutchison amendment’s chances of passage as remote.  Hutchison and the Republicans are in the minority in the Senate.]

North Carolina Rep. Ty “Big Telecom’s BFF” Harrell Resigns Under Ethical Cloud

 

Rep. Ty Harrell - Big Telecom's BFF: Buh, Bye

Rep. Ty Harrell (D-Raleigh) submitted his resignation today after an ethics investigation raised questions about his campaign finances.  Harrell resigned to ‘spend more time with his family and to deal with divorce proceedings.’

Stop the Cap! readers will remember Harrell from this past spring, when he allowed Time Warner Cable to help draft anti-consumer, anti-municipal broadband legislation and introduced it as his own.  It seems Harrell has been representing his own interests over that of his constituents well beyond just a telecommunications bill our readers shamed him into walking away from this past spring.

“The people of District 41, and all citizens of North Carolina, deserve representatives who can make clearly-focused decisions on their behalf,” Harrell wrote in a letter to House Speaker Joe Hackney. “With the recent turbulence in my personal life and continued speculation about my campaign expenditures, I do not feel that I can provide the high standard of representation that my constituents expect and deserve.”

On this the people of Raleigh should wholeheartedly agree.  Harrell’s interests in serving some of his corporate friends, who have contributed generously to his campaign, obviously exceeded the interests of his constituents.  The News & Observer today reports:

Harrell’s campaign expense report for January through June of this year showed an unusual number of expenses for a year with no election. Many of the expenses were to restaurants at a time when Harrell had no source of income other than his nearly $14,000 legislative salary. In an earlier report, he listed paying $235 to a pricey children’s clothing store and $191 to Sharon Luggage, with both identified as a “committee meeting.” and the descriptions of the expenses often were listed as “donor recruitment,” “strategy meeting” or other explanations that the elections board found insufficient.

Harrell has been living outside his district for more than a month at a friend’s house, feeling unhappy in marriage. His wife, Melanie Dupon, filed for divorce in July, alleging an extramarital affair.

The affair was probably with big telecom.

Harrell wrote as part of his resignation letter:

“My parents always told me, and I believe, that public service is an honorable calling,” Harrell wrote. “I answered that call by serving in the General Assembly as an agent for positive change. But holding public office can put significant strains on a young family and I am living proof of that.”

One of the strains Harrell writes about could have been how to creatively hide the money in expense reports that he allegedly spent on himself.  As Stop the Cap! North Carolina issues coordinator Jay Ovittore reported back in May, Harrell accepted $2750 in campaign contributions from telecommunications companies, a sizable amount for a state legislator not running a committee.

The election board’s staff found so many alleged discrepancies, it asked for more than 200 pieces of additional information on Harrell’s filings, according to the News & Observer.

As we wrote back in May, Harrell’s response to our charge that his bill represented the direct opposite of his own constituents’ best interests was one of “surprise.”

Representative Harrell, we honestly cannot understand your surprise over the outrage and backlash that came after you handcrafted, on spec from Time Warner and its lobbying lawyers, an incredibly anti-consumer, anti-competitive, nightmare of a piece of legislation designed to destroy municipal broadband across the state of North Carolina.

Rep. Ty Harrell (D-NC), who normally considers himself a progressive Democrat, has so bumbled his way through this entire affair, he’s managed to end up on the same side as the ultra-big-corporate friendly Americans for Prosperity, which is now war-dialing its way through North Carolina with push polls and fear-monger phone messages.  If that doesn’t sound alarm bells that something isn’t right, what will?  He admits he didn’t realize North Carolina has been through this anti-consumer nonsense before.  In 2007, largely the same bill was bought and paid for by big telecom special interests, but failed to pass after elected officials realized it would antagonize their constituents into voting for anyone but them in the next election.  No kidding.

Stop the Cap! is not surprised Rep. Harrell will now be looking for a new day job.  Democrat or Republican, Stop the Cap! is watching our elected representatives like a hawk.  We will continue to call out the bad actors and expose their anti-consumer actions.  The people of North Carolina have one less bad representative to deal with, but unfortunately there are others who are also cashing the checks and prepared to abandon the people they are supposed to represent.  We’ll continue to name names and show how much they’ve taken to vote against your interests.

Two news videos appear below the jump….

Jay Ovittore is Stop the Cap!’s North Carolina issues coordinator.

… Continue Reading

Search This Site:

Contributions:

Recent Comments:

Your Account:

Stop the Cap!