Industry-friendly subcommittee delivers for telecom firms

When the nation’s broadband providers were frustrated in their attempt to stop the Federal Communications Commission from creating new rules to regulate the Internet, the fight moved to the House. The far more sympathetic Commerce Subcommittee on Communications and Technology voted 15 to 8 to “disapprove” the FCC’s rules. Since the FCC action on Dec. 21, members of the subcommittee have collected $81,500 in contributions from broadband and wireless providers and their trade associations. More than half the total went to three key members who pushed the anti-rules resolution. Rep. Greg Walden (R-OR), chairman of the subcommittee, received the most, at $19,500. Rep. Lee Terry (R-NE), vice chairman, was second, at $16,000. And Rep Fred Upton (R-MI), who chairs the full House Commerce Committee, received $11,000.

On April 8, the House approved the measure by a 240-179 vote, with 234 Republicans in favor and two opposed. Chances of it succeeding are slim, however, because of opposition in the Senate and a veto threat from the Obama Administration.

The real push behind the resolution appears to have come from a letter-writing campaign by Freedom Works and the closely affiliated tea party movement. A draft “Letter to Congress,” circulated to tea party groups, says the rules, known as network neutrality, are bad for free market principles and free speech and accuses the FCC of acting “under the cover of darkness” to “regulate the Internet whether we like it or not.” Freedom Works is headed by former House Majority Leader Dick Armey (R-TX) who lobbied on behalf of Verizon in 2008 when he was with the firm DLA Piper US LLP. A 2005 National Journal article reported that Freedom Works accepted money from Verizon and SBC Communications Inc. (now AT&T Inc.).

The committee's contributions came from political action committees controlled by the nation’s largest broadband and wireless companies and their trade associations: Verizon/Verizon Wireless Inc.; AT&T; Qwest Communications International Inc.; the United States Telecom Association; Comcast Corp.; Sprint Nextel Corp.; Time Warner Cable; the National Cable & Telecommunications Association; T-Mobile USA Inc. and CTIA —The Wireless Association. Overall, the broadband industry has showered members of the subcommittee with nearly $1.3 million in contributions since 2009, according to an Investigative Reporting Workshop analysis of Federal Election Commission filings. The top recipient during that time was Chairman Upton, who received $80,000. Second was Rep. Henry Waxman (D-CA) at $76,000. Waxman is former chairman of the full committee. He lost the chairmanship when the Republicans took control of the House after the midterm elections. Despite the generosity of the companies, Rep Waxman voted against overturning the rules.