Broadband Duopoly, ctd.

If it feels a bit drafty around your state's capitol these days, the breeze may be coming from all those telephone and cable lobbyists chatting on their cell phones. According to a report released today by the nonpartisan Center for Public Integrity, telecommunications companies and their associations have spent at least $78 million lobbying state legislatures in the past two years. (State by state data is available here).

broadband-wire.jpg The biggest spender is SBC Communications. According to the report, SBC spent more than $16 million on lobbying in 2003-04. That trend clearly continued into 2005. In Texas alone this year, SBC hired 123 lobbyists, largely to push a plan that eases the telephone company's charge into the TV business. It took a couple of special sessions, but SBC mostly got what it wanted.

What's going on? State legislatures and public utility commissions are emerging as big battlegrounds in today's broadband wars. Cable and phone companies are invading each others' turf: the cable guys now sell voice service, the phone guys are moving into TV, and both sell high-speed internet. As these industries converge, players on both sides are willing to spend big sums on lobbying for the chance to tilt the regulatory playing field in their favor.

LOBBYING THE STATES: TELECOM'S TOP TEN IN 2003-04

1. SBC  $16.3 million

2. Cablevision  $13.5 million

3. Verizon  $11.2 million

4. AT&T  $7.1 million

5. Nat'l Cable & Telecom. Assoc. & state affiliates $4.8 million

6. MCI  $2.6 million

7. Sprint  $2.1 million

8. Cingular  $1.8 million

9. AT&T Wireless  $1.6 million

10. U.S. Telecom Assoc. & state affiliates  $1.6 million

Source: Center for Public Integrity

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