Corruption Road: How Corporate Money and Astroturf Pollute Media Policymaking

The American Consumer Institute, a group funded by industry (not by consumers), produces “research” claiming that Net Neutrality “would mean that consumers lose $69 billion in potential benefits over the next 10 years.”

Stephen Pociask, President

Pociask formerly served as chief economist for Bell Atlantic (now part of Verizon) and is now a phone industry consultant.

Pociask recently asked: “Why would we want [to enact] new rules that will slow new innovation in order to fix theoretical problems that don’t exist and could be dealt with under existing FCC authority?” It would be a fair question, if the problems didn’t actually exist (they do) and if the FCC had the authority to fix them (it currently doesn’t). source

Americans for Prosperity is funded by major telecom, pharmaceutical, energy and tobacco companies … you name the corporate lobby, and this group probably took its money to set up a phony grassroots front. In 2010, AFP launched a misleading $1.4 million advertising blitz to label Net Neutrality a “government takeover of the Internet.” Americans for Prosperity cloaks a pro-corporate agenda behind a conservative political ideology, but routinely sells out its beliefs if the price is right.

Phil Kerpen, Policy Director

“Net Neutrality is the beneficent-sounding name for sweeping new government regulatory power that would prohibit Internet service providers from innovating in their own networks. This could lead to much less broadband investment by private companies, and could potentially force government subsidization, control and outright nationalization of the Internet.” source

Americans for Tax Reform (ATR) claims to be on the side of taxpayers who want to lower their taxes but its policy priorities are more in line with the major corporations that fund its efforts

Grover Norquist, President

In the past, ATR served as a “conduit” for funds that flowed from Jack Abramoff’s clients to fake grassroots lobbying campaigns. Abramoff was convicted of fraud and sent to federal prison, but under Grover Norquist, ATR is still in the practice of taking money from undisclosed corporations. Its latest scheme involves labeling Net Neutrality a “government takeover of the Internet” while smearing Net Neutrality supporters.

“The FCC is trying desperately to manufacture congressional support for their radical proposal to regulate the Internet,” Kelly William Cobb of ATR wrote. “But it now appears they have simply found a socialist organization [Free Press] to do their bidding.” source

The Internet Innovation Alliance claims to favor broadband policies that “will improve Americans’ lives” and promote consumer interests. But no true consumer group can be found anywhere on its membership list. Its membership, however, does include AT&T, which makes sense given IIA’s consistent opposition to any effort to protect consumers on the Internet. Before becoming IIA co-chair, Bruce Mehlman worked as telecommunications policy counsel for staunch Net Neutrality foe Cisco Systems. As the co-founder of the elite DC lobbying firm Mehlman Vogel Castagnetti Inc., Mehlman served other anti-Neutrality forces, including the U.S. Chamber of Commerce and Verizon Communications. Consumer-friendly appearances aside, IIA is merely an Astroturf extension of these corporate lobbying efforts.

Dick Armey, Chairman

“The proponents of Net Neutrality have some very nice sound bites and flowery talking points that would lead you to believe that it’s about keeping the Internet free – I assure you nothing could be further from the truth.” source

On Monday, 74 House Democrats joined 37 Senate Republicans to sign an industry-written letter that tells the Federal Communications Commission to halt all efforts to protect Internet users and stop big companies from blocking Internet traffic.

Net Neutrality — the principle that would keep users in control of the Internet — was the top communications policy of President Obama when he came into office last year. Obama has repeated his support for an open Internet on several occasions since, and last summer appointed Julius Genachowski to lead the FCC and fulfill this presidential promise.

That promise has now been cast into doubt by dozens of Democrats willing to sell out their president, their constituents, and millions of Net Neutrality supporters to do the bidding of special interests. source

AT&T routinely funnels millions of dollars to astroturf groups and PR firms to spread misinformation about Net Neutrality. In 2009 alone, the phone giant spent $15 million to hire more than 100 lobbyists to fight open Internet policies in Washington. During the first quarter of 2010, AT&T spent nearly $6 million on lobbyists, putting it on course to equal its greatest one-year federal lobbying output. source

Chief Executive

Randall L Stephenson, Chairman & CEO

“We’re going to control the video on our network. The content guys will have to make a deal with us." source

The Money Trail

2009 Profits: $12.5 billion

Lobbying and campaign contributions data provided by Center for Responsive Politics and the Senate Office of the Public Record.

Time Warner Cable wants to impose a new Internet overcharging scheme on users, whereby those who use their connection for more than simple e-mail and Web surfing could get hit with exorbitant fees. It began testing this overcharging plan in 2009 and was met with a flood of public opposition. The company is now hiring PR firms and lobbyists to lead a “customer education process” selling the scheme.

Chief Executive

Glenn Britt, Chairman & CEO

When asked during a quarterly investors’ call whether Time Warner Cable was planning to charge content producers for priority access to further monetize the company’s broadband network, Glenn Britt replied, “I don’t know.” Britt’s top lobbyists are now pushing for policies that would allow the company to create priority lanes for some and degrade access for others.source

The Money Trail

2009 Profits: $1 billion

Lobbying and campaign contributions data provided by Center for Responsive Politics and the Senate Office of the Public Record.

Comcast spent $12.6 million on 100 lobbyists in 2009

Chief Lobbyist

David L. Cohen, Executive Vice President

Cohen said it was “truly sad” that the debate over Net Neutrality has been “filled with so much rhetoric, vituperation, and confusion.” But in 2008 Comcast, organizers hired dozens of “seat warmers” to pack a public hearing on Net Neutrality — effectively blocking access for citizens who were genuinely interested in having a debate on the issue. source

Financial data collected through Senate Office of Public Records.

The Discovery Institute is well known for its assaults on scientific reasoning — attempting to discredit evolution in favor of “intelligent design,” and disputing thousands of scientific findings that link global warming to manmade causes. And wouldn’t you know it: The institute takes money from the religious right and large energy special interests. On Net Neutrality, the institute gained notoriety for its claim that Internet networks are going to drown in data as early as 2010. What better excuse for phone and cable companies to start rationing off access to the highest bidder? So who else funds the Discovery Institute? The group won’t reveal its backers “because they get harassed,” but the New York Times has found that it received money from the Verizon Foundation, the phone company’s charitable arm. source

Bret Swanson, Senior Fellow

“[P]referential [Internet traffic] partnerships, where content and conduit are integrated to varying degrees — and which are ubiquitous in almost every industry — could be outlawed under Net Neutrality.” source

The Phoenix Center is an industry-funded think tank that operates as a mercenary research arm for AT&T and other phone companies. The center has become notorious in Washington for its stunning reversal of opinion on Net Neutrality, a flip-flop that just happened to coincide with the change of its major industry benefactors. Before AT&T became a funder, the center penned an op-ed titled “Net Neutrality: Now More than Ever.” Now that the center is on AT&T’s payroll, it can be relied upon to churn out phony data and malign anyone who supports Net Neutrality. source

George S. Ford, Chief Economist

“Network neutrality regulation has, at best, ambiguous welfare effects and, at worst, is decidedly anti-consumer.” source

The Heritage foundation is a think tank that receives tens of millions of dollars in support from corporations and conservative family foundations. It doesn’t list the names of these corporations on its website or disclose them when asked but …

James Gattuso, Senior Research Fellow

“There is little or no evidence of market abuse by network owners… Today’s broadband market is competitive, and any network abusing its position would quickly lose customers.” source

The Heartland Institute is a coin-operated think tank that takes corporate money to promote “junk science” and other industry-funded research. The group specializes in aping industry talking points on issues including global warming, health care reform and Net Neutrality. Its Fortune 500 clients include Philip Morris USA, the ExxonMobil Corporation and major telecommunications companies.

Joseph L. Bast, President

“We now keep confidential the identities of all our donors. If you do not approve of this policy, your argument is not with us but with those who would abuse a sincere effort at transparency.” source

James G. Lakely, Managing Editor

“Net Neutrality divests control over the Internet from the private sector to the government. And in typical Marxist fashion, innocuous words — the language of neutralism and liberty — cloak an agenda that would crush freedom.” source