CABLE, INTERNET FIRMS SPEND BIG ON LOBBYISTS.

Byline: Rick Orlov Staff Writer

The companies fighting for a piece of the city's lucrative cable Internet market contributed more than $106,000 to elected officials and spent $510,000 on lobbyists over the past months, according to a city Ethics Commission report issued Thursday.

The report comes as the Los Angeles City Council is scheduled today to consider creating a special citizens panel to make recommendations on the issue that has generated tension between Mayor Richard Riordan and his Information Technology Commission.

Three of the five commissioners resigned this year in protest of what they said was pressure from the office of the mayor, who favors a so-called closed system. Favored by cable firms and companies such as AT&T that are investing in cable systems, a closed system would require customers to use the cable company as its portal to the Internet.

Riordan has argued that a closed system is needed to encourage the wiring of the city. The mayor later decided to remove himself from the debate, agreeing not to lobby for any system, because his wife owns stock in America Online (AOL).

He now says the decision should be left to the Federal Communications Commission. The City Council has already gone on record in favor of an ``open access'' system. Open access, which is being sought by Internet service providers such as AOL, would allow customers to select any company to be their main access to the Internet.

The issue has nationwide implications in how future Internet services will be provided to residents and businesses. Firms on both sides have hired the city's top lobbying firms to make their point.

AT&T has hired Cerrell Associates Inc., MWW Group and Rose and Kindel, while their opponents, AOL and GTE Telecommunications, have retained Marathon Communications as well as the law firms of Latham and Watkins and Manatt, Phelps and Phillips, among others.

AT&T, Telecommunications Inc. and Century Communications paid $201,000 of the total to lobbyists, while AOL and GTE paid $124,000 to lobbying firms.

Contributions were made to elected officials, including a majority of City Council members as well as City Attorney James Hahn and Controller Rick Tuttle.

Council members receiving contributions included Council President John Ferraro and Council members Mike Feuer, Mark Ridley-Thomas, Ruth Galanter, Mike Hernandez, Joel Wachs, Laura Chick, Nate Holden, Rudy Svorinich and former Councilman Richard Alatorre. Contributions were also made to a number of candidates in this year's election, including winning candidates Alex Padilla and Nick Pacheco.

The money spent on cable access helped fuel the record amount of $1.67 million spent on lobbyists during the period from April 1 through June 30, the Ethics Commission said.