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from: SJ-R.com

Cable, phone industries up donations
Stakes high in fight over bill to promote competition

By DANA HEUPEL
STATE CAPITOL BUREAU

Published Saturday, April 14, 2007

As debate heats up over legislation to ease the way for telephone companies to compete with cable television firms, a new study shows that both sides have donated large sums to Illinois lawmakers and the governor over the past two years.

Figures compiled by the Illinois Campaign for Political Reform reveal that the cable and telephone industries gave about $2.5 million to Illinois officials during the most recent two-year donation cycle. The study covers the period from Jan. 1, 2005, to Dec. 31, 2006, the latest available figures.

House Bill 1500, which is scheduled for a committee hearing Wednesday, would eventually end franchise agreements between cable operators and cities or other local governments. Businesses seeking to supply video service to Illinois customers would have to obtain statewide franchises.

The legislation has sparked television and newspaper advertising campaigns. Anticipation of the bill also may have upped the ante for campaign donations, according to David Morrison, deputy director of the political reform group.

"What strikes me is how difficult it can be to have a clean discussion on what's best for the state when there's so much money on the table," he said Friday.

Supporters of the legislation, such as AT&T and other telephone companies that could offer new services, say it would foster competition and lower prices. Opponents, such as Comcast, the state's largest cable company, say telephone companies can bid on franchises now, and that the bill could allow companies to "cherry pick" favorable neighborhoods to serve while ignoring those with less-desirable demographics.

Concern also has been expressed over whether the legislation would maintain requirements for community and local government programming by service providers. Some municipalities have objected, too, saying companies could install utility boxes on city-owned land without local input.

Over the two-year cycle, telephone interests donated $1,387,000, the nonpartisan group's figures show. Cable concerns gave $1,150,000. AT&T and Comcast were the largest contributors, and the governor and the leaders of the four legislative caucuses were the largest recipients, although donations were spread throughout the ranks of lawmakers and across party lines.

Morrison said campaign contributions from the two industries were higher during the latest two-year cycle than the two previous years.

He said it is difficult to compare donations further back because AT&T once owned what is now Comcast's cable business.

"It's hard to say how we should allocate AT&T's giving in 2001, when they also owned the cable company, and now they're competing," he said.

Representatives of AT&T and Comcast say their campaign donations had nothing to do with HB 1500.

"We are one of the top employers in the state, and our efforts in the General Assembly are to encourage a positive business climate that will boost the economy and create new jobs," said Rob Biederman, a spokesman for AT&T.

"It's nothing new for Comcast and the industry to be involved in the political process, supporting candidates on both sides of the aisle and working toward good government," said Comcast spokesman Rich Ruggiero. "Our activity in '05 and '06 is just an extension of a long history of doing that."

Lawmakers and other state officials have long said that campaign contributions do not influence their legislative decisions and often only reflect support for their outlook on various issues.

Morrison said that although the two industries' campaign contributions cannot be directly tied to HB 1500, the legislation is crucial to both.

"House Bill 1500 could define the way that those two entities compete with each other for years to come. If one of them can write an advantage into statute, now is their chance to do it, and their business will benefit from that," he said.

Morrison noted that large campaign contributions from businesses would be illegal in many other states and at the federal level but are allowed in Illinois, which has no limits on who can contribute or how much.

"Legislators are also at some point all candidates, and candidates need resources to get their message out to voters," Morrison said. "Because these groups have shown a willingness to pony up large sums of money to candidates, legislators tend to pay more attention to what they might want or how they can use their office to encourage more giving."

AT&T donated $741,000 during the two-year period, according to the political reform group. The second-largest telephone industry contributor was T-Mobile USA, with $178,000.

Comcast gave $545,000 to lawmakers and Gov. Rod Blagojevich. The Illinois Cable Political Action Committee, to which Comcast is also a large contributor, gave $520,000.

The legislation is scheduled for a hearing before the House Telecommunications Committee on Wednesday. The sponsor, Rep. James Brosnahan, D-Evergreen Park, who also chairs the committee, could not be reached Friday.

Dana Heupel can be reached at 788-1518 or dana.heupel@sj-r.com.