from: Knox News [1]

Lobbying costs hit $11M in AT&T, cable TV industry battle

By Tom Humphrey (Contact)
Tuesday, November 20, 2007

NASHVILLE - Lobbying expenses in Tennessee's legislative war between AT&T and the cable television industry reached the $11 million plateau this year, according to reports filed with the Tennessee Ethics Commission by major participants.

The reports, required under an ethics law passed by the Legislature last year, mark the first time that lobbyist employers have had to publicly disclose their expenditures for a full year. Two reports were required for 2007, the last due on Nov. 15.

AT&T, which pushed legislation that would have allowed the company to obtain a statewide franchise to operate cable television, reported spending between $3.45 million and $3.55 million in its effort during the two reporting periods combined.

Between $600,000 and $700,000 of that total came in direct payments to the 26 lobbyists registered for AT&T. The rest went for advertising and mailings that urged Tennesseans to contact their legislators and urge them to vote for the bill.

TV4US, which bills itself as a consumer advocacy group seeking more competition in the cable television industry and a supporter of the AT&T bill, reported spending between $1.6 million and $1.7 million - almost all for advertising. AT&T is listed among several organizations sponsoring TV4US on the group's Web site, www.wewanttvchoicetn.com/tn.

Thus, total spending by the major supporters of the bill in the 2007 legislative session was between $5.05 million and $5.25 million. The measure failed, but AT&T Tennessee President Gregg Morton says the telecommunications giant will renew its push in the 2008 session.

Spending on the opposing side was somewhat higher.

The Tennessee Cable Telecommunications Association reported spending between $5.5 million and $5.6 million in the two reports combined. That included $400,000-$500,000 in compensation to lobbyists, with most of the rest going to cable television advertising.

The association also operates a Web site devoted to the issue at www.keepitlocaltennessee.com.

Comcast Cable Inc. filed separate reports showing between $175,000 and $350,000 in expenditures - most in direct payments to lobbyists.

Spending of the major opponents of the legislation thus totaled between $5.675 million and $5.95 million.

Combined spending for both sides totaled between $10.725 million and $11.2 million.

The lobbyist disclosure law does not require reporting of exact figures on lobbying costs, and those who spend less than $10,000 in a six-month period do not have to report any expenditure figure.

City and county governments, which generally were opposed to the AT&T bill, also are exempt from reporting requirements, though some local governments file reports voluntarily.

The Tennessee Municipal League, representing cities statewide, reported between $100,000 and $200,000 in payments to lobbyists. The Tennessee County Services Association, representing county governments statewide, disclosed paying between $50,000 and $100,000 in lobbyist compensation.

Both groups, however, are involved in lobbying multiple other issues.

Stacey Burks Riggs, executive director of the cable association, said local governments were supportive of the cable cause but very little spending was involved in city and county efforts.

"Their members (city and county elected officials) are their lobbyists," she said.

She said cable efforts were necessary to counter AT&T "hiring every lobbyist in the state, practically."

Under the current cable system, local governments issue cable franchises and receive fees in return. Several officials contend passage of statewide franchising could lead to loss of local control and local revenue.

AT&T spokeswoman Terri Denard said the company's expenditures were necessary to "communicate to the people of Tennessee, as well as their elected officials, the benefits of more competition."

She and Riggs both said their organizations are prepared to renew the lobbying battle next year. Riggs said the cable association recently began running ads again.

Denard said that elected officials are beginning to get the AT&T message "as they hear from their constituents" while cable interests "simply don't want to compete against a viable competitor, and that's what we intend to be.

"The message we get from our customers is that they overwhelmingly want to see competition for their entertainment services," Denard said. "As that message continues to get to local officials and they begin to understand the why and how of that message, I think we will continue to gain support."

Tom Humphrey may be reached at 615-242-7782.