AT&T/T-Mobile, LightSquared Debates Drive Q2 Lobbying
Sprint Nextel’s fight with AT&T and T-Mobile over the GSM carriers’ proposed combination led to increased spending on lobbying for all three carriers in Q2, according to quarterly lobbying reports released this week. The fight over the extent to which LightSquared’s planned terrestrial system will disrupt GPS signals also continued to be a boon to the lobbying industry. Google, Facebook and other Internet companies continued to expand their Washington presence, while major telecom associations maintained spending consistent with 2010 levels.
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
Sprint’s lobbying spending more than doubled last quarter from the year-ago period. It spent $1.37 million, up from $512,100. The carrier’s top lobbying issue: “Opposition to AT&T acquisition of T-Mobile.” AT&T reported spending $4.85 million in Q2, up from $3.09 million. T-Mobile spent $1 million in Q2, up 67 percent from a year earlier. Verizon, which has mostly stayed out of the merger fight, spent $4.38 million, down from $4.44 million.
The increase in Sprint spending can mainly be attributed to its opposition to AT&T’s plan to buy T-Mobile, a Sprint spokesman said. Sprint is “committed to doing what we need to do to make sure members of congress and their staff understand” why the proposed deal “is bad for consumers, innovation and the economy,” he said. Sprint won’t “ever” be able to “match opponents dollar for dollar … but we feel good that the message is resonating.” A T-Mobile spokeswoman said the deal is an “important reason” for the increase and the company’s top priority. She said the increase can also be attributed to other issues of focus for T-Mobile, including cellphone tax and spectrum legislation, as well as salary changes and hiring.
LightSquared more than doubled its lobbying payout from the first quarter, with nine lobbying groups on its payroll, records show. The company used Nethercutt Consulting, Brownstein Hyatt, Dickstein Shapiro, Ballard Spahr, Gephardt Group, Wexler & Walker, Mehlman Capital Strategies, Palmetto Group and American Continental Group. Dickstein and Brownstein got the largest chunks, at $90,000 each. Brownstein and Nethercutt weren’t employed by LightSquared in Q1. Others saw their quarterly payment increase. Wexler was paid $80,000 compared to $30,000 in Q1 and the Gephardt Group was paid $50,000 last quarter to lobby on “potential aviation communications interference,” up from $20,000 in Q1.
GPS spending also grew. Trimble Navigation, helping lead the Coalition to Save Our GPS, a group aimed at preventing LightSquared interference, paid Akin Gump $280,000 in Q2, up from $70,000 in the year-ago period. Innovative Federal Strategies also got a bump, doubling its $20,000 take from last year to $40,000. The coalition itself wasn’t included in the lobbying disclosure form database. Garmin paid Dow Lohnes $30,000 to lobby on the LightSquared issue in Q2, up from $20,00 in Q1. Like Q1, a wide array of groups mentioned LightSquared in last quarter’s lobbying forms. Such groups include the National Corn Growers Association, the National Association of Manufacturers, Deere and the Aircraft Owners and Pilots Association.
Major Internet companies also ramped up their spending in Q2. Google spent $2 million, nearly double the $1.3 million that it reported in the same quarter last year. Yahoo spent $640,000, up from $550,000. Facebook spending continued to accelerate, spending $320,000, up from $60,000. Netflix spent $110,000, the most the Internet company has reported since its first-ever lobbying report in Q4 2010. Netflix spent $80,000 in that quarter and Q1 2011.
Q2 spending by major communications and electronics associations was mostly level with last year. NCTA spent $4.37 million, up from $3.93 million. NAB spent $3.38 million, up slightly from $3.02 million. CTIA spent $2.09 million, about even with the wireless association’s spending in Q2 2010. CEA spent $760,000, also in line with last year. USTelecom spent $1.49 million, slightly less than the $1.57 million it spent in Q2 2010. Spending by the Telecommunications Industry Association dropped 81 percent to $70,000. CompTel spent $144,640, up 11 percent.
Comcast outmatched other cable companies in lobbying spending. It spent $4.8 million, up $1 million from the Q2 2010. The company’s reports now include NBCUniversal lobbying, “a significant portion of the year over year increase,” a Comcast spokeswoman said. Time Warner Cable spent $1.99 million, up from $1.44 million in Q2 2010. Cox spent $680,000, nearly even with what it spent the same quarter last year.
DBS lobbying stayed largely in line during Q2, compared with the same period last year. DirecTV, which spent $1.17 million last quarter, continued to be a much bigger spender in the lobbying arena than Dish Network, which spent $240,000. DirecTV spent $1.01 million in Q2 2010 and Dish spent $230,000. Most of the money DirecTV spent was used for its in-house lobbying operations, though it spent $325,000 on outside lobbyists, disclosure filings said. The largest payment was $75,000 to the Fritts Group, unchanged from a year earlier. DirecTV identified retransmission consent and discriminatory state taxes as issues it was lobbying on. Dish paid Dunkel Government Relations $30,000 and Emmer Consulting $60,000 for outside lobbying, the filings said. Dish listed Universal Service Fund reform, the AT&T/T-Mobile deal, retrans and programming access as issues it lobbied on.
Spending by small rural carrier associations was down. The NTCA spent $80,000 in Q2, nearly half what it spent in the year-ago period. That’s also $210,000 less than what it spent in the first quarter of this year. OPASTCO spent $45,000, the same as it spent in Q2 2010. Public safety continued a streak of high spending on lobbying (CD April 22 p3) as spectrum legislation moved forward last quarter. APCO spent $80,762 in Q2, versus $200,000 in the year-ago period which was an outlier and was much more than in other recent quarters. The Rural Cellular Association, also active on public safety legislation, spent $80,000 in Q2 2011, up $30,000 from the year-ago period.