Sprint, T-Mobile Spent Less on Lobbying in 2015's First Quarter

Sprint and T-Mobile spent less on lobbying so far this year, Q1 lobbying reports showed. Monday was the deadline for quarterly lobbying reports, but many trade associations and companies hadn't filed theirs by our deadline. Observers have said net neutrality and proposed acquisitions are big drivers of spending in the telecom space, and those issues turned up repeatedly in the Q1 forms posted this week.

T-Mobile spending dipped to $1.18 million in Q1 from $1.47 million the year before. It lobbied for support of the Wireless Tax Fairness Act and on the Permanent Internet Tax Freedom Act. Other priorities included attention to “wireless policy on consumer protection and privacy issues in the House and Senate Commerce and Judiciary Committees; general lobbying activities on spectrum policy and related recommendations in the FCC's National Broadband Plan; lobbying activities and contacts in support of telecommunications policy.” T-Mobile’s spending in Q1 was far lower than what it spent in any quarters of 2014 – its quarterly spending went as high as $1.91 million in Q3 of last year and never below $1.3 million.

Sprint’s spending was $734,927 in Q1, a drop from $784,707 this time a year ago. Sprint identified such telecom priorities as the 800 MHz rebanding, the Communications Act overhaul, wireless Lifeline and USF, spectrum policy, interconnection, wireless facility siting and net neutrality. Observers have said spectrum auctions are a big driver in lobbying spending among the carriers.

The other big stakeholder in the coming broadcast TV incentive auction is broadcasters. NAB spent $4.72 million, down from the $5.28 million it spent a year ago. Last year NAB showed heightened lobbying spending in general, pegged to the Satellite Television Extension and Localism Act reauthorization process. That process ended in December with a reauthorization bill signed into law. The Q1 spending is higher than NAB spent in any quarter of 2013 or 2012. NAB lobbied on the broadcast transmission standard, broadcast spectrum and the incentive auction, FCC rules on broadcast ownership, and FCC reauthorization and oversight.

Other video industry stakeholders didn't show big spikes in spending. DirecTV spent $450,000, down from the $690,000 it spent a year ago. The American Cable Association, counting President Matt Polka and Ross Lieberman as lobbyists, showed a $20,000 uptick in spending at $150,000 this year.

Comptel is working to raise its Washington profile and recently held its first Washington summit, featuring key lawmakers in the telecom space (see 1502240051). It spent $362,464 in Q1, a big leap from the $192,447 it spent in Q1 a year ago. Its spending has steadily risen over the last year, hitting a high of more than $400,000 in Q4 of 2014. Its latest lobbying form showed attention to the last mile and interconnection provisions of the 1996 Telecom Act and IP interconnection. It lobbied on Sections 251 and 252 of the act and “general lobbying related to open-internet issues, specifically advocating for interconnection and applicability of Title 2 provisions (201,202, and 208).” It lobbied against the Comcast/TWC deal.

Level 3 Communications, a player in the battles on net neutrality and interconnection, spent $181,454 in Q1 of 2015, employing only Kelsi Reeves on its own behalf. It lobbied on open Internet, special access and “technology transition.” Level 3 also registered two new lobbying firms this quarter, Northfork Strategies and the Cormac Group. Level 3, like many industry stakeholders, paid lobbying firms many tens of thousands -- $15,000 to Capitol Resources, $10,000 to Northfork, $20,000 to Cormac, $52,500 to the Joseph Group and $30,000 to Van Scoyoc Associates.

Level 3’s spending is more than double what it spent in any quarter of 2014, when it spent $90,000, $61,000, $71,000 and $53,000.

Netflix spent slightly more than in the past: $330,000 in this Q1, up $30,000 from a year ago. It lobbied on “Internet non-discrimination” and “Internet privacy” among its issues. The Internet Association, which has Netflix and other tech companies as members and was active in the net neutrality battles, showed a drop in spending -- $360,00 this Q1, $400,000 in the last. The association had three lobbyists focused on “Issues related to the Open Internet Roadmap.”

WTA-Advocates for Rural Broadband spent $90,000, up from the $75,000 it spent a year ago, and detailed various meetings it had in the telecom sphere in recent months. WTA staffers “met with Congressional staff to discuss WTA's views on what's needed to encourage more video distribution in rural areas and what are some of the current problems facing rural video providers (e.g., large increases in retransmission consent fees, limited access to affordable video content, small MVPDs[’] inability to receive adequate broadcast signals and problems with the current designation of designated marketing areas (DMAs)),” it said. WTA also “met with congressional offices to discuss the association's views on four specific provisions (Bright Line Rules, Forbearance from Sec. 254(d), Enhanced Transparency Provisions, and Interconnection for RLECs) that were part of the larger Order adopted by the FCC in February,” the group said. It emphasized the need for a Connect America Fund for small rural local exchange carriers and “has opposed efforts to make USF funding a part of the federal appropriations process which has been proposed by members of the House Energy and Commerce Committee.” It backed the Improving Rural Call Quality and Reliability Act (S-827).

CEA spent more than $100,000 more in 2015’s Q1 than last year’s, $680,000 vs. $570,000. It lobbied on a range of issues, from immigration to drones to data breach notification to overhauling the Electronic Communications Privacy Act and surveillance issues. Its principal telecom lobbyists are Michael Petricone and Veronica O’Connell and it listed its primary lobbying priorities in that space as “Regulation of the Internet; Title II; Net Neutrality.” It mentioned one piece of legislation: the Wi-Fi Innovation Act (HR-821/S-424). It held a lobbying day pegged to CES on the Hill this month, pressing Hill offices on topics such as immigration and patent overhaul. NTCA’s spending stayed steady, $180,000 in Q1 of this year as well as last. NTCA is holding a legislative conference in Washington this week for what it says will be nearly 500 members. NTCA’s lobbyists laid out the strategy behind such Hill meetings to us last fall, stressing attention then to retransmission consent, USF and call completion (see 1410310043).

The Independent Telephone and Telecommunications Alliance’s lobbying expenses dropped, from $35,200 last year to $20,000 this year. Its lobbyist Paul Raak focused on “issues related to merger activity and the impact on the video marketplace; issues related to reform of the Universal Service Fund; issues related to municipal broadband, issues related to video reform; issues related to collection of Federal Communications Commission regulatory fees,” lobbying both the Senate and House, and lobbied House lawmakers on the FCC’s funding.

Consumers Union spent slightly more on lobbying, $80,000 this quarter vs. $70,000 the same time last year. Its lobbyists opposed the Comcast/TWC deal, and dealt with issues such as net neutrality, robocalls, mobile phone unlocking and data privacy and breach notifications. Common Cause, as it did a year ago, spent $30,000, and lobbyist Aaron Scherb urged “Senate, House and President of the United States to promote an open internet and protect net neutrality,” the group said. It lobbied against Comcast/TWC.

Not all lobbyists met the threshold for reporting specific lobbying expenses. NATOA Executive Director Steve Traylor continues to work as a registered lobbyist for his organization and clocks under $5,000 in quarterly spending. His lobbying priorities in Q1 included the protection of PEG funding, “local government franchise revenues,” and “local government authority over the private use of public rights of way.” Public Knowledge also spends less than $5,000 on its lobbying, it reports, listing Vice President-Government Affairs Chris Lewis as its one lobbyist. Lobbying focuses for Lewis included the Comcast proposed acquisition of Time Warner Cable, which the group opposes, and net neutrality. It also lobbied on the Data Security and Breach Notification Act (HR-1770) and trade promotion authority.