Service glitches, billing errors and product changes are all but assured as multichannel video programming distributors (MVPDs) digest a record spree of mergers and acquisitions, many experts said. Some said already-low customer satisfaction for broadband and pay-TV service will worsen during integration of M&A worth about $166 billion. That includes AT&T's now-completed (see 1507240055) takeover of DirecTV, Charter Communications' planned buys of Time Warner Cable and of Bright House Networks, and Altice buying control of Suddenlink. At stake for broadband and video subscribers of these and other ISPs and MVPDs is whether their experiences ever improve from levels that some research finds are lower than any other U.S. industry.
In an era when the chairman of the FCC is a former head of two major trade associations, the movement of professionals between the public and private sectors is wide ranging in Washington and European capitals. Through U.S. Freedom of Information Act requests, other record searches and interviews, the stories in this Communications Daily Special Report detail how swiftly and widely the revolving door rotates.
Rules governing the revolving door between European Commission officials and members of European Parliament (MEP) and the private sector aren't tough enough, some experts said. Current officials pointed toward ongoing efforts to increase transparency, which some said aren't adequate. Corporate Europe Observatory (CEO) team member Vicky Cann said U.S. rules appear to be "more developed," possibly because of the different political system and the amount of money in play.
Lawmakers in California and Florida bowed legislation this month to overhaul ethics rules within their states’ utility regulatory commissions in response to recent controversies. Both the California Public Utilities Commission (CPUC) and the Florida Public Service Commission (PSC) have faced similar legislation before. This time, legislators have shied away from focusing on provisions to reform state revolving door laws related to the private sector. Public interest advocates who continue to support strengthening revolving door laws say they believe strengthening existing laws can be difficult.
The revolving door rotates freely in government public relations. At just one federal agency with about 1,700 total employees, at least 14 public relations experts and lawyers who advise on issues including PR came or left during the Obama administration. Careers of PR practitioners exiting the FCC since about Jan. 21, 2009, spanned the gamut. Some job changes resembled the traditional revolving door, with officials leaving for the industries their employer used to regulate, others were so-called reverse revolvers coming to the agency from entities that lobbied the FCC, while other career paths were less orthodox and don't fall under the revolving door rubric at all. That is according to Communications Daily Freedom of Information Act requests, other records and interviews with those who reviewed our database.
Comcast’s willingness to hire representatives with a background at the FCC gives the cable operator an advantage when dealing with the agency, said attorneys and executives -- some former FCC officials themselves. Though industry observers disagree over whether that advantage stops at merely having one’s phone calls returned or extends to more palpable agency favors, all said inside knowledge of FCC processes and personnel gives Charter Communications, Comcast and Time Warner Cable a boost when dealing with the commission.
Comcast hired more lobbying firms in 2014 than it had in any of the previous 15 years, with many hires showcasing a deep understanding of Capitol Hill antitrust oversight. The cable operator has a history of bulking up with antitrust-focused industry lobbyists, often former Hill staffers who have gone through the revolving door from the public sector to the private, whenever an acquisition is pending approval. This type of hiring was evident both this past year with its proposed Time Warner Cable purchase and in 2010 when it was buying NBCUniversal. Some observers critical of the proposed acquisition said this is an especially intense lobbying ramp-up and a sign of how seriously Comcast takes Washington politics.
Former FCC staff members and attorneys representing satellite operators and other participants in the industry generally said the revolving door at the FCC, including within the agency's International Bureau, has had a positive impact on the regulatory issues affecting the satellite industry. Some attribute the ongoing reform of Part 25 rules and efforts for more efficient spectrum use to the insight provided by FCC staffers who previously worked in the private satellite sector. Among former satellite industry executives, according to a Communications Daily Freedom of Information Act request and other documents and interviews, are Diane Cornell, deputy general counsel; Jose Albuquerque, Satellite Division chief; and Kalpak Gude, associate Media Bureau chief.
In trying to slow the Washington revolving door, President Barack Obama's 2009 executive order 13490 prohibited many federal officials joining the government from being able to work, in some cases, on issues of interest to their former employers. So why are Gigi Sohn, a top aide to FCC Chairman Tom Wheeler, and others with ties to entities with a past record on net neutrality able to be involved in the agency’s deliberations on the issue?
The Obama administration’s 2009 rules that have kept many registered lobbyists out of the administration remain controversial, though they were watered down in August, industry officials said. While they've likely had an effect on the revolving door between industry and the government, industry observers said one concern has always been that they targeted some lobbyists -- those registered with Congress -- while ignoring other kinds of lobbying -- for example, those representing a company before the FCC or another federal agency.