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Home - Archived Articles - Telecom industry generous with political donations
Archived ArticlesCarriers

Telecom industry generous with political donations

by Reily Gregson September 18, 2000
written by Reily Gregson September 18, 2000 Share
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WASHINGTON-Telecom firms-including those with major wireless properties-have contributed nearly $18 million so far in soft money in the 2000 election cycle, according to a new report.

Overall, Common Cause said the telecom industry ranked second only to Wall Street in this season of record, unregulated political donations. The telecom industry has given almost $17.8 million to national party committees to date. The securities and investments sector is tops in election 2000 soft money, with nearly $24.2 million.

“Our democracy is dangerously close to becoming a government of, by, and for wealthy special interests,” said Common Cause President Scott Harshbarger.

Common Cause, a government watchdog, based its study on Federal Election Commission filings submitted between Jan. 1, 1999, and June 30, 2000.

Leading all soft money donors is AT&T Corp., parent of one of the nation’s leading mobile-phone firms. AT&T has poured close to $3 million in soft money into campaign coffers during the first 18 months of the 2000 election cycle.

AT&T, seeking government approval of a mega-merger with cable TV giant MediaOne, has given more than $1 million each to the major political parties: $1.8 million to Republicans and $1.1 million to Democrats.

SBC Communications Inc., another wireless giant, has been the sixth-biggest soft-money donor so far. SBC has given $702,247 to Democrats and $532,052 to Republicans.

The eleventh-biggest soft money contributor is Verizon Communications Inc., the largest U.S. mobile-phone carrier. Verizon has contributed $443,800 to Democrats and $609,639 to Republicans.

The Communications Workers of America, which recently settled a strike with Verizon, has given nearly $2 million in soft money-all of it to the Democratic Party. Likewise, Baltimore attorney Peter Angelos, who is contemplating suing the wireless industry over alleged cases of cancer from mobile phones, has given only to Democrats-$907,900 of it since January 1999.

Elsewhere, the GOP has received $996,478 from Microsoft Corp. The Democratic Party, the party of the administration that forced the software king into a court-ordered breakup, has received $809,292 from the Bill Gates-led firm.

“These `double givers’ are the prime examples of wealthy special interests who are not contributing soft money because they’re ideologically aligned with one party or the other, but because they want to ensure access with lawmakers,” said Harshbarger. “AT&T, Microsoft, Enron (Corp.) and all the other `double givers’ are ready to do whatever it takes to get a seat at the table.”

Motorola Inc., the top U.S. wireless manufacturer, has given $10,000 to Democrats and $50,875 to Republicans.

On Capitol Hill, mobile-phone firms are aggressively lobbying lawmakers on a range of wireless issues. The industry wants Congress to lift the 45-megahertz spectrum cap and to ensure that additional third-generation mobile-phone spectrum is allocated by the Federal Communications Commission.

In addition, mobile-phone carriers are fighting to oppose any legislation that allows NextWave Telecom Inc. to keep wireless licenses that are tied up in bankruptcy proceedings.

Last year, Congress passed legislation giving wireless carriers and vendors limited liability protection for 911 services. This year, Congress passed legislation to simplify state and location taxation by state of mobile-phone calls.

The Cellular Telecommunications Industry, through its political action committee, has given $76,784 to candidates (36 percent to Democrats, 64 percent to Republicans) in the 1999-2000 election cycle, according to the Center for Responsive Politics.

Contributions to the CTIA PAC from individual donors of $200 or more total $43,905 so far. In the 1997-98 election cycle, CTIA’s PAC gave $87,158 to candidates, with Republicans receiving about two-thirds of the total. An additional $81,000 was poured in the CTIA PAC from individual donors.

The Personal Communications Industry Association’s PAC, according to CRP, has contributed $4,500 (22 percent to Democrats, 78 percent to Republicans) this election cycle. Contributions to the PCIA PAC by individual donors have totaled $4,000. PCIA’s PAC donated four times as much to federal candidates in the 1997-98 election cycle.

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