Telecom sector interests told us they'll closely watch midterm results for early clues about how telecom policymaking will fare in next Congress. The margin of control for whichever party holds a majority in the House and Senate is particularly important for indicating whether there will be legislative gridlock on issues like net neutrality and whether compromise is possible on matters like broadband infrastructure funding, said lobbyists and officials.
Pending and potential leadership turnover on the House and Senate Commerce committees will be on the minds of many in the telecom sector as they follow results of Tuesday's elections. The top GOP seats on the House and Senate Communications subcommittees will be up for grabs after the election, with outgoing Senate Commerce Chairman John Thune, R-S.D., showing interest in the latter. There's potential for turnover in the top Democratic seat on Senate Commerce. The Judiciary committees and House Digital Commerce Subcommittee could also see leadership changes (see 1810310025).
NCTA said Wednesday it’s ending support for the re-election campaign of Rep. Steve King, R-Iowa, amid rising controversy over the eight-term incumbent’s recent comments criticizing racial diversity and immigration. Intel is also pulling its support for King, while AT&T says it will re-evaluate during the next campaign cycle. He recently retweeted a Nazi sympathizer and has endorsed far-right candidates in several foreign countries’ elections, including a white nationalist contender for Toronto mayor. King’s recent comments led National Republican Campaign Committee Chairman Rep. Steve Stivers, R-Ohio, to “strongly condemn” him Tuesday. The leaders of two Jewish congregations in Iowa urged King’s contributors to pull their support. Analysts rate King as in a competitive race against Democrat J.D. Scholten. “As an organization and industry that highly values diversity and inclusion, we denounce [King’s] comments and no longer support his campaign,” NCTA said. NCTA didn’t immediately comment on whether its political action committee will ask King’s campaign to return a $1,000 donation made in September 2017 to support his primary bid. AT&T, which has also contributed to King’s campaigns, said in a statement its PAC “will not be making any further contributions to Congressman King this year” and the PAC’s committee “will take all concerns very seriously” when it considers whether to donate to King in “2019 and beyond.” After evaluating King’s recent comments, Intel “determined that they conflict with [the company's] values. As a result, we are no longer donating to his campaigns.” King’s campaign didn’t immediately comment. He tweeted Tuesday that "these attacks are orchestrated by nasty, desperate and dishonest fake news. Their ultimate goal is to flip the House and impeach [President] Donald Trump.”
The 1992 Cable Act is largely “obsolete” and “mostly unnecessary,” MoffettNathanson analyst Craig Moffett said in his response to lawmakers' written questions after a September House Communications Subcommittee hearing on the state of the media market. The hearing in part touched on coming 2019 Satellite Television Extension and Localism Act (STELA) reauthorization and the Next Generation Television Marketplace Act (HR-6465) to repeal compulsory copyright licenses and retransmission provisions in the Cable Act (see 1809270062). The committee released responses Tuesday.
Google was again the top entity in the tech and telecom sectors for Q3 lobbying, which also saw satellite-TV reauthorization positioning (see 1810230051). The company reported $5.46 million in lobbying expenditures, up more than 30 percent from the same period in 2017. AT&T spent $3.85 million in Q3, down 13 percent. Amazon spent $3.63 million, up 6 percent. Comcast reported $3.43 million, down 2 percent. NAB dropped 9 percent to $3.41 million. NCTA spent $2.78 million, up 12 percent. Verizon expended $2.33 million, up more than 4 percent. Charter outlays increased almost 21 percent to $2.23 million. CTIA spent $2.2 million, up almost 3 percent. T-Mobile had $2.06 million, down 12 percent. Apple spent $1.33 million, down 28 percent. Internet Association increased 60 percent to $800,000. Disney spent $760,000, up almost 19 percent. Sprint and Twitter previously reported increased outlays for the quarter (see 1810220048).
Media market stakeholders are likely to launch further salvos over the next two months in a bid to define the contours of the coming Satellite Television Extension and Localism Act reauthorization debate, but Capitol Hill is unlikely to wade further into the issue until the 116th Congress convenes next year, lawmakers and lobbyists told us. The recertification process was seen as unlikely to start in earnest until after January. The issue factored into a September House Communications Subcommittee hearing (see 1809270062).
Sprint, Twitter and three tech and telecom industry groups reported increasing Q3 lobbying expenditures over the same period in 2017. Cox and others said spending dropped. The filing deadline was Monday night. Outside firms reported substantial income from lobbying on behalf of other telecom and tech companies and industry groups.
FCC Chairman Ajit Pai will likely face a shift in Capitol Hill oversight scrutiny in 2019 if one or both chambers shift to a Democratic majority in November elections, lawmakers and communications sector officials told us. That appears unlikely to endanger Pai's ability to lead the FCC any more than it has for other chairmen who faced lawmakers amid changing electoral fortunes, former commission officials predicted. Capitol Hill Democrats have had a sometimes-tense relationship with Pai since his chairmanship began in early 2017 (see 1807250043). Democratic leaders are generally eyeing more rigorous oversight of President Donald Trump's administration if they win control of a chamber.
The Advancing Innovation and Reinvigorating Widespread Access to Viable Electromagnetic Spectrum (Airwaves) Act could generate up to $2.86 billion in rural wireless broadband investments, the Competitive Carriers Association said Wednesday. The bill aims to identify spectrum for unlicensed use and free up mid-band spectrum for wireless industry purchase via a future FCC auction (see 1802070054). CCA and other telecom groups back HR-4953/S-1682, which have bipartisan support. A CCA-commissioned study, by Telecom Advisory Services, said an estimated short-term infrastructure investment of up to $2.86 billion would happen if it becomes law. Telecom Advisory Services President Raul Katz said he used in calculations the investment and economic impacts resulting from the 2016 600 MHz band incentive auction and other recent auctions, plus other recent spectrum transactions like Verizon's purchase of Straight Path, as benchmarks. “If enacted before other auctions, including the 3.5 GHz and 3.7-4.2 GHz bands, this bill could have an even greater impact,” said CCA President Steve Berry. "This study confirms that passage of the AIRWAVES Act could result in billions of additional dollars for rural broadband buildout and substantially increase GDP across various economic sectors," said Sen. Cory Gardner, R-Colo., one of S-1682's lead sponsors, in a statement. Fellow lead S-1682 sponsor Sen. Maggie Hassan, D-N.H., said she will "keep working to move this legislation forward in order to turn the potential positive economic impact of this bill into a reality."
Newsmax CEO Chris Ruddy urged members of the House and Senate Commerce and Judiciary committees Monday to “encourage” FCC Chairman Ajit Pai to institute a “new, acceptable” national media ownership cap before any future media “mega-merger." Ruddy also renewed his concerns about retaining the restored UHF discount. If “the FCC does not act” on either item, “it is incumbent upon Congress” to deal with both as part of its 2019 debate on Satellite Television Extension and Localism Act reauthorization, he wrote. Ruddy, an opponent of Sinclair's now-dead deal to buy Tribune, criticized Pai on the UHF discount and ownership cap proceedings given perceptions by some they benefited Sinclair (see 1710240049). Despite Sinclair/Tribune's demise, the “underlying” issues of the UHF discount and media ownership cap still exist, Ruddy said. Tribune's 42 TV stations remain for sale and “a merger with another station group will certainly put the new company well above the existing cap." There's "strong bipartisan support to keep” some form of cap, “although some increase above 39 percent may be warranted,” Ruddy said. The committees didn't comment.