Telecom Reform Fuels Lobbying Activity
Lobbying spending among telecom, cable and broadcast groups increased about 9% in the first half of 2005 compared with the same period in 2004, according to mid- year reports filed with the Secy. of the Senate. The reports examined for this article include only the internal spending reported by trade associations and companies. Most companies and trade associations supplement their internal resources with outside lobbying groups and law firms that have special expertise in topic areas for contracts ranging from $10,000 to $250,000 per filing period, which is 6 months.
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Our report examined spending among 11 entities: U.S. Telecom, pre-merger AT&T, BellSouth, Verizon, SBC, Qwest, Time Warner, Comcast, Cox, NCTA and NAB. Total spending for the first half of 2005 for the group was $36,388,000, compared with $33,441,000 for the same period in 2004.
US Telecom had the highest increase in spending, with an almost 3-fold uptick in expenditures from $4,680,000 to $11,440,000 in 2005, according the mid-year report. The association had a range of issues it worked on and bills that it discussed with members of Congress including: Video franchising, junk faxes, spyware, universal reform, broadband, advanced communication services, DTV, broadcast decency and non-telecom related issues dealing with energy and taxes. The group also met with the FCC and relevant govt. agencies.
“We believe updating telecom laws is good for consumers, the country and the economy and we're committed to getting it done,” said Tom Amontree, senior vp- communications-U.S. Telecom. The last 2 years have been a busy time as momentum has built in Congress for a rewrite of telecom laws, Amontree said. He expects the association’s work to continue next year, and is “optimistic” that legislation may be forthcoming by the end of the 109th Congress: “We think we have a good story to tell and we're going to continue to tell it.”
It’s not surprising that U.S. Telecom has increased its presence on the Hill, said one industry source. “They've got a peculiar membership representing a variety of different-sized companies, so they don’t move monolithically.” On the one hand, the larger firms are pressing for video franchising legislation, while the smaller companies in more rural areas are concerned about Universal Service Fund (USF) reform. “This year, they've gotten very aggressive and active while having to satisfy multiple interests within the organization.”
Video franchising has become a major driver for telecom reform as telcos seek to enter the video market, and Congress appears responsive to the prospect of a competitor to cable. Both cable and Bell companies listed the issue among the topics addressed with congressional contacts in their mid-year reports. Other major topics included broadcast decency, DTV, VoIP, broadband deployment, USF, spyware, copyright, intellectual property and for SBC and AT&T, merger issues.
Here is what firms and associations spent in the first half of the year, compared with the same period in 2004: AT&T, $4.2 million vs. $4.1 million; NAB, $3.4 million vs. $3.6 million; NCTA, $3.3 million vs. $3.5 million; BellSouth, $3.1 million vs. $3.3 million; Verizon, $2.6 million vs. $3 million; Qwest, $1.9 million vs. $1.3 million; SBC, $1.8 million vs. $5.7 million; Comcast, $1.7 million vs. $1.6 million; and Cox, $980,000 vs. $624,000. SBC, now known as AT&T, said its expenses declined in part because it’s no longer declaring its USTelecom dues among lobbying expenses, a spokeswoman said.