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Bell
SkunkWorks
101
A Look Behind the Curtain.
Connect the Dots or be One of the
Disconnected.
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Are any of these names
familiar to you: TRAC, APT, Issue Dynamics,
USIIA, New Millennium Research Council, BellSouth,
Verizon, SBC, Pac Bell, United Church of Christ
- Washington is filled with astro-turf, (read fake)
groups that keep telling everyone they represent
the public interest, but in reality represent the
phone companies who pay them well. And Issue
Dynamics, run by Sam Simon, has organized multiple
group for the Bell phone companies, all in an
attempt to make regulators and the press believe
that they have your best interests in mind.
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Issue
Dynamics
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Bell
Companies (ILECs) and their amazing
astroturf
machine,
Ionary,
October 2004
It's called
astroturf. Not the stadium rug for which
it's named, but the creation of phony
"grass roots" organizations as public
relations fronts. In the telecom world,
the king of astroturf is Sam Simon, whose
firm, Issue Dynamics Inc. (IDI), describes
its public relations job as "developing a
campaign that gets your messages out
through paid and earned media". "Earned"
media? I wonder if they teach that in
J-school. "Issue Dynamics provides a full
package of professional stakeholder
management services for clients who seek
strategic alliances with stakeholders in
the following segments: consumer, civil
rights, education, disability, senior
citizens, Hispanic, African-American,
Asian-Pacific American, Native American,
small business, rural, state/local
government associations, technology, among
others." Yep, stakeholders for sale! Want
to get support from Left-handed Samoans
against pay cable? Sure, that group can
probably be created for a fee too. IDI
counts the RBOCs among its key clients.
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Leading
Bell Skunkworks Architect
Samuel A. Simon is a
nationally recognized authority on consumer and
public affairs, with twenty-six years experience at
the highest levels of his profession. Mr. Simon
pioneered the practice of bridging gaps between
industry and non-traditional consumer groups on
public policy, marketing and consumer affairs
issues to achieve win-win solutions for clients.
IDI is a true pioneer in developing public affairs
web sites and grassroots strategies on the
Internet.
- Chairman, Board of
Directors, National Consumers League --- NCL
is a CAC board member.
- Commissioner, Fairfax
County Consumer Protection Commission
--Fairfax is a CAC member.
- Board Member, Call For
Action --- Call for Action is the Chairman of
the CAC Committee
- Chairman of the Board
Telecommunications Research and Action Center
- Recipient, Susan B.
Hadden Pioneer Award, Alliance for Public
Technology (1999) -- Award Given by
APT
- Client
List:
Ameritech, TRAC, APT, BellSouth, Verizon, Bell
Atlantic, Pac Bell, USTA, GTE, New Millenium
Research Council, USIIA, Verizon Wireless, SBC,
National Latino Telecommunications Task Force,
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Alliance
For Public Technology
APT
Sponsors
- BellSouth,
- Intel,
- SBC,
- SBC California,
- TracFone Wireless,
- Verizon
This represents 8 out
of 9 original Bell groups, including GTE, SNET.
APT
Staff SYLVIA
ROSENTHAL, Executive Director --- VP IDI.
As Executive Director of
the Alliance for Public Technology, Sylvia
Rosenthal oversees the management of the
organization and all of its projects, including the
newsletter and the annual Susan G. Hadden awards
program. Ms. Rosenthal is also Assistant Vice
President of Issue Dynamics Inc. where she devotes
her time exclusively to management of APT.
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Snow
job,
Network World, 1/26/98
"IDI's associates help to
organize and manage coalitions with names such as
the "Alliance for Public Technology" and "Keep
America Connected
The literature for each
group lists a different phone number manned by an
IDI employee who answers the phone with the name of
that coalition. It also lists either IDI's street
address or a District of Columbia post office
box.
"The group's chairman, Dr.
Barbara O'Connor, bristled at the suggestion that
the alliance is a front for anything, noting that
it has even held a seat on the FCC's prestigious
Network Reliability Council
.But of the
alliance's $190,000-per-year budget, approximately
$100,000 is supplied by the regional Bell operating
companies, she said. Not surprisingly, last
October, the alliance wrote the FCC in support of
BellSouth's South Carolina long-distance
application and has consistently supported other
RBOC policy positions.
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TRAC:
Telecommunications
Research & Action
Center.
- TRAC is a nonprofit,
tax-exempt, membership organization
located...
- IRS 1999-2001, statement
4, Schedule A
"During the year,
TRAC purchased goods and services from an
affiliated taxable orgamoizatiomn named Issue
dfynamics, inc. Issue Dynamsic, Inc. provider
managemetn services as well as overhead costs
for fees to TRAC."
Board of
Advisors
- Samuel A. Simon,
Chairman
- Rev. Robert Chase,
is Minister and Team Leader of the Proclamation,
Identity and Communication Ministry of the
United Church of Christ.
- Henry Geller has
served on the TRAC Board for nearly ten
years
- Henry Geller of
Counsel to the Alliance for Public
Technology.
- Rev. Dr. Everett
Parker is the founder and former director of
the Office of Comm. of the United Church of
Christ (UCC).
- Dirck A.
Hargraves, Secretary and Counsel serves as
Secretary and Counsel to TRAC. He served as
president of the Alexandria, Virginia Conference
of the National Association for the Advancement
of Colored People (NAACP). He is currently
general counsel and senior consultant with Issue
Dynamics, Inc.
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Idahoans
for Telecommunications Competition - More IDI
Skunkworks
Consumers
in 4 States Could Save $1.7
Billion (see
glossy PDF newsletter)
"A new study by (TRAC) found
that consumers in Pennsylvania, Illinois, Florida
and Georgia could save at least $507 million and up
to $1.73 billion on local phone and long distance
service after one year of increased
competition."
"The evidence is clear and
compelling: open entry for all competitors in the
long distance market can result in significant
savings for consumers," TRAC Chairman Samuel A.
Simon
"TRAC, the nation's leading
telecommunications focused consumer group, has been
publishing long distance rate comparisons for
consumers and small businesses since 1984. The two
new studies update similar New York surveys in 1999
and 2000. "
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TRAC "source"
code: "Designed and developed by Issue
Dynamics, Inc. For more information see
http://idi.net."
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Who
Paid for this TRAC New Jersey Report and
Others?
(doc)
TRAC lost money every
year and didn't even make back it's management
running expenses. Who paid for this report?
TRAC'S
CHAIRMAN HONORED
Samuel A Simon, Chairman of
the Board of TRAC, the Telecommunications Research
and Action Center was honored on February 18th when
he was awarded the Susan G. Hadden Pioneer in
Telecommunication Access honor. The distinction was
announced by William E. Kennard, Chairman of the
Federal Communications Commission, at a
reception hosted by the Alliance for Public
Technology.
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TRAC's mission for
the last five years has been to make the long
distance carriers look bad and help the Bell
companies enter Long Distance" And it is funded by
the Bell companies through Issue Dynamics. Go
through the site and look for questioning Verizon,
BellSouth or SBC...
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TRAC Financials,
2002
In
2002, TRAC made $19,600, had $47,000
orfexpenses, and owed Issue Dynamics$122,000
liabilities.
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Revenue
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$19,612
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Expenses
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$47,427
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Assets
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$8,823
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Liabilities
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$122,080
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Bogus Data For
Bell's Long Distance Entry
TRAC created a series of
questionable reports for Verizon so that they could
enter the long distance markets in various states:
--- Used by Verizon in their press releases and
filings.
Verizon
Asks SCC to Support Company's Request To Offer Long
Distance in Virginia:Filing Brings Virginians Step
Closer to Full Telecom Competition
3/15/02
"A study by the consumer
organization Telecommunications Research and Action
Center (TRAC) estimated that New Yorkers are saving
up to $700 million a year in local and
long-distance charges since Verizon began providing
long-distance service in the Empire State in
January 2000. Another TRAC study forecasted that
Pennsylvanians could save up to $452 million in the
first year after Verizon began offering
long-distance service there last
October.".
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Testimony
by Economics & Technology
(PDF: Contains 1999
IRS Filing, showing
losses)
"The so called consumer group
that released these long distance studies, TRAC, is
actually the creation of a Washingon, DC public
relations firm who's clients include Verizon, all
of the other Bell companies, and the Bell
companies' lobbying organization, the United States
Telephone Association."
"The study's various
assertions and assumptions, and the conclusiong
based thereon, are demonstrably false"
Note: this testimony was
for AT&T. However, NNI has independently
confirmed the analysis, and ETI is one of the
respected, read ethical, telecom research firm.
(For Verizon's entry into Long Distance in
Virginia, 2002)
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Sam Takes the
Consumer Groups to Fight For
Broadband.
- Gray
Panthers
- American Association
of People with Disabilities
(AAPD).
- Black Leadership
Forum
- League of United Latin
American Citizens (LULAC).
They jointly signed an ex
parte paper to the FCC that says the Bell companies
shouldn't have to open their fiber-optic networks
to competition.
- $50,000 to the Black
Leadership Forum
- $205,500 to
LULAC
- AAPD got "major"
donations from both Verizon and the Verizon
Foundation, but put a Verizon VP on its own
board?
Is it any wonder that these
groups met with
Did these groups disclose
that they were funded by the phone companies or did
it just look like consumer groups, a black group,
seniors, hispanics, and people with disabilities
were involved?
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Harm
To Competition 101
In order to get rid
of competitors, Verizon hired IDI to create a
fake rally, got the Gray Panthers to run adds, and
even got the Church of Christ
involved.
- "Gray
Panther Ads Targeting WorldCom Funded by IDI
Corporate
Crime Reporter, 6/2/03 Earlier this month, the
Gray Panthers, a public interest group that
defends the rights of senior citizens, took out
full page ads in newspapers around the country
calling on federal officials to stop awarding
federal contracts to MCI WorldCom -- which
committed one of the largest corporate frauds in
history.At the bottom of the ads, in small type,
is this:"This ad was paid for by Gray
Panthers."
"In fact, the $200,000
spent by the Gray Panthers to place the
newspaper ads was raised by Issue Dynamics Inc.,
a Washington, D.C.-based consulting firm that
represents the Baby Bells in their fight against
WorldCom and that specializes in "bridging gaps
between industry and consumer groups on public
policy issues."
- "United
Church of Christ Stooge for the Baby
Bells?
UCCtruths.com
- Gloria
Tristani, managing director of the Office of
Communication of the United Church of Christ
(OC, Inc.) and former Commissioner of the
FCC.
Source
Watch: Issue Dynamics
...its work has angered some consumer
activists, who say IDI often does not disclose whom
it is working for and argue that IDI's work amounts
to astroturf PR.
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WorldCom
Opponents In Sync D.C. Firm Helps Organize Protest,
Washington Post,
6/30/03
Verizon spokesman Eric Rabe
confirmed that IDI is working for the telephone
company. "We are happy to support groups that have
similar views as ours, and Sam is bringing us
together," Rabe said. "...Rabe would not say how
much Verizon is paying IDI. He said Verizon is not
the only company contributing to a "funding pool"
on the WorldCom issue, but he declined to identify
other participants."
According to the Washington
Post,
"
last year IDI
organized an effort by the National Association of
the Deaf, the American Foundation for the Blind and
the American Association of People With
Disabilities to support a bill pushed by the local
telephone companies to relax rules that require
them to share their high-speed networks with
rivals. In a news release issued by IDI, the groups
said they would benefit because the bill would
increase access to broadband for everyone,
including those with disabilities."
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Gray
Panthers' Corporate
Connection,
6/25/03, CommonDreams.org
"Over the past couple of
years, Issue Dynamics played a pivotal role in
turning the National Consumers League from a
consumer group into a corporate front group. And
last year, Sam Simon, Issue Dynamics' founder and
president, was named chair of the board of the
National Consumers League."
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New
Millennium Research Council (NMRC)
The NMRC is an
independent project of Issue Dynamics,
Inc.(IDI),
How
to Run a Skunk Works Campaign 101--- IDI enlists
NMRC for promotional services and scholar support
for economic report for client
Issue Dynamics worked with
the New Millennium Research Council (NMRC to
provide support and exposure for release of a
seminal economic study by an economic think tank.
This included recruitment of academic and industry
experts to provide commentary, and generating
earned media pick-up in key national trade journals
and major newspapers.
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"IDI was able to provide the
client with immediate support to finalize the
report, host an event and generate significant
earned media. ...The study was also cited by two
Democratic presidential candidates as a way to
reenergize the U.S. economy."
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Behind
the Numbers:Policy groups wage silent war,
BroadbandReports,
9/18/03
The NMRC is a, a consumer and
public affairs consulting firm that specializes in
developing win-win solutions to complex policy
issues. Influencing the Debate The NMRC influences
the policy debate by creating a variety of research
products. These include "quick response" pieces in
reaction to current news as well as longer-term
research.
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Free
Ride: Deficiencies of the MCI Layers
Policy Model and the
Need
(PDF)
Here's how it works. Get a
number of "Experts" funded by the Bell companies to
use their name and organizations. This one, a
respected report by MCI is trashed. Example,
- Stephen Pociask,
President, TeleNomic
Research, LLC. bio
doesn't mention "former Chief Economist for Bell
Atlantic".
- David P. McClure,
President and CEO, USIIA,.
Bio doesn't say this "ISP" group works with
IDI and Verizon.
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The
Everett C. Parker Ethics in Telecommunications
Lecture
"Sponsored by the United
Church of Christ and TRAC". (TRAC/Parker
Lecture)
Sam
Simon Used to Be a Consumer Advocate and Worked
with Nader
Citizen Action: Chapter 5...
through the confusion of telephone deregulation,
for example, TRAC published Reverse the Charges:
How to Save Money on Your Phone Bill...
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