AT&T’s lavish spending at convention stirs ire of watchdogs and competitors

DENVER — AT&T is flexing its muscles at the Democratic National Convention with elaborate spreads for lawmakers and delegates that have drawn the ire of telecom rivals and good-government watchdog groups.

The telecom giant says it is simply being a good corporate citizen with its hospitality that has ranged from a lavish party for the House Democratic Blue Dog Coalition featuring rising pop star KT Tunstall to separate lunch receptions for the Maryland, Illinois and California delegations.

{mosads}AT&T has also scheduled a VIP Jazz brunch for the House New Democrat Coalition and a salute to African-American voters, held atop the Grand Hyatt in downtown Denver that affords guests views of snow-capped peaks 100 miles away.

The company has sponsored at least 14 events and receptions, according to list of events compiled by Quinn Gillespie & Associates, a lobbying firm that received $60,000 in the second quarter of this year to represent the corporation.

Good-government critics blast AT&T’s busy schedule as a brazen skirting of ethics law.

“They wouldn’t be paying for all of this if they weren’t getting good return on their investment — visibility which translates into access and influence,” said Meredith McGehee of the Campaign Legal Center.

AT&T officials, however, disagree. They say they are acting as good corporate citizens by spending money on an important political event that has drawn the attention of thousands of news reporters.

“For many years AT&T has been involved in the national presidential conventions,” said Michael Balmoris, AT&T’s spokesman. “AT&T’s role as a good corporate citizen is to showcase the elective process in the best light possible.”  

“Additionally, the presidential conventions give AT&T a unique opportunity to present and display the many leading-edge technologies and innovations that we offer to tens of thousands of consumers. That’s why we contribute and participate.”

Watchdog groups are not the only ones to disapprove of the display. AT&T’s corporate rivals are also galled — or perhaps a little envious — by the political largesse.

Some telecom companies have decided to adopt a lower profile at the Democratic convention out of respect for Qwest, which is headquartered in Denver.

AT&T has shown no such consideration. It has even gone so far as to plant its corporate logo on two Democratic convention banners hung directly outside Qwest’s headquarters on California Street.

By planting its flags defiantly in Qwest’s backyard, AT&T caused a ripple of murmurs through the community of lobbyists who represent the telecom industry.

{mospagebreak}“They are somewhat tactless,” said an official at a rival telecom company. “AT&T doesn’t care; they’re going to show that they’re the biggest telephone company in the country.”

The Democratic National Convention Committee named AT&T the official wireless service provider of the Denver confab.

Balmoris noted that AT&T has contributed to both the Republican and Democratic convention host committees.

To be sure, Qwest has also worked hard to make sure that Democratic lawmakers and the potential next president of the United States take notice of the firm.

{mosads}Qwest is the official telecommunications provider of the convention. It has installed about 140 miles of single strands of copper and coaxial cable to upgrade Denver’s communications infrastructure, adding over 3,000 voice-grade circuits to serve the Pepsi Center and Invesco Field.

Qwest held a reception honoring women lawmakers on Monday and later that day Qwest chairman Ed Mueller hosted a reception at the Denver Art Museum.

US Telecom has also sponsored events, including a late night party at The Loft, a downtown nightclub that describes itself as “elemental and profound.”

AT&T, however, appears to be hosting far many more events than its corporate rivals, and few if any companies in any industry match its presence at various parties and receptions.

AT&T is also sponsoring the after-hours fete at The Loft, as well as batting practice for delegates, congressional aides and lawmakers at Coors Field, plus a campaign party with the Recording Industry Association of America.

Tom McMahon, Qwest’s director of corporate communications, declined to comment for this article.

AT&T’s big convention presence matches a flush political action committee. The corporate PAC has given over $3.5 million to federal candidates this election cycle, including many lawmakers, according to CQ MoneyLine, a website that tracks political giving. AT&T’s PAC has doled out $180,000 to Democratic leadership PACs and over $470,000 to Republican leadership PACs.

Qwest’s PAC has made $750,000 worth of contributions to candidates in 2007 and 2008.
Verizon has given less than $200,000 in PAC contributions this cycle.

AT&T has an interest in several issues before Congress. AT&T Services Inc. reported spending more than $3 million in the second quarter of this year lobbying on consumer safety product legislation, business tax relief, arbitration law and telephone taxes.