Telecom Donations Flow To Newly Empowered Democrats

Posted on November 14, 2006 - 10:07am.

from: Technology Daily

Tech, Telecom Donations Flow To Newly Empowered Democrats

By David Hatch

(Revised Wednesday, November 8) In the runup to Tuesday's election, Microsoft, Time Warner and other deep-pocketed telecommunications and technology giants filled the campaign coffers of House Democrats who will now emerge as key powerbrokers with their party having captured a House majority.

The beneficiaries include House Minority Leader Nancy Pelosi of California and John Dingell of Michigan, the top Democrat on the House Energy and Commerce Committee. Pelosi will become now become House speaker, with Dingell in line to head the Commerce panel that he formerly chaired from 1980 to 1994 while his party was in power.

And Rep. Edward Markey of Massachusetts, the lead Democrat on the House Energy and Commerce Telecommunications and the Internet Subcommittee, also raked in tech industry money. He would opt to chair the subcommittee with the Democrats in control.

All three lawmakers were drawing sizable donations despite supporting Internet regulations that put them at odds with many of the industry behemoths bankrolling their campaigns.

Late last spring, the trio voted against House-passed deregulatory telecom legislation backed by the Bell companies. Markey and Dingell in particular have been frequent critics of telecom and cable giants.

"Obviously people are hedging their bets," said Gigi Sohn, president of the watchdog Public Knowledge. "I think all [the campaign money] gets them is access."

Celia Wexler, vice president of advocacy for Common Cause, noted that money generally flows to power. "If you're sensing a shift in power, you're going to redirect your money," she said.

Political action committees associated with AT&T, Comcast, the Communications Workers of America, Microsoft, and the National Cable and Telecommunications Association each have donated $10,000 to Pelosi -- the maximum allowable.

Other top contributors during the 2005-06 election cycle include T-Mobile ($7,500) and Time Warner ($9,000), according to the Federal Election Commission.

PACs run by AT&T, the Walt Disney Co. (the corporate parent of ABC television), Clear Channel Communications and the NCTA gave $10,000 to Dingell. Additional supporters include BellSouth ($4,000), Comcast ($5,000), the National Association of Broadcasters ($8,000) and Verizon Communications ($8,000).

Markey attracted $10,000 donations from PACs run by AT&T, Comcast, Disney, NAB, NCTA and T-Mobile. Other generous contributors include Clear Channel ($6,000), Fox television parent News Corp. ($6,000), Sprint Nextel ($7,000) and Time Warner ($8,500).

FEC records indicate that Sen. Daniel Inouye, D-Hawaii, the likely chairman of the Senate Commerce Committee if his party ultimately wins control of that chamber, has drawn few tech dollars this cycle. But, in the days immediately prior to the elections, the Democrats' prospects were seen as slimmer in the Senate than the House -- and Inouye is not up for re-election until 2010.

Sen. John (Jay) Rockefeller, D-WVa., who faces re-election in 2008, has attracted $6,000 contributions from Comcast and Verizon. He is considered a contender to head Senate Commerce if Inouye were to run another committee.

According to the nonpartisan Center for Responsive Politics, political donations from the entire communications/electronics sector this cycle have a slight Democratic tilt. The sector includes computers, film, music, publishing, telecom and television.

Meanwhile, PACs and individuals associated with AT&T have contributed slightly more than $2.4 million to federal candidates this cycle, with $1.58 million (66 percent) going to Republicans and $822,000 (34 percent) to Democrats, according to the center.

( categories: Telcos | Senate S.2686 )