It’s important to implement Phase II of the Connect America Fund “promptly and thoughtfully,” Frontier, Windstream and USTelecom told an aide to FCC Commissioner Jessica Rosenworcel Monday, an ex parte filing said (http://bit.ly/1jmUunl). The groups, representing the ABC Coalition, told the aide that many challengers of Round 2 of CAF Phase I incremental support “have not borne their burden” of demonstrating the challenged census blocks are “in fact served” by fixed Internet service of at least 3 Mbps down/768 kbps up.

Reports that Sprint is considering a bid for T-Mobile (CD Dec 16 p15) appeared to come from a leak inside Sprint, BTIG said in a research note Thursday. BTIG said this was unusual since the risk is that reports could drive up the price of T-Mobile, working against Sprint’s interest. “Companies leak possible deals if they are interested in how shareholders would react but SoftBank owns 80 percent of Sprint,” BTIG said. “Sprint might be expecting strong Q4 results from T-Mobile and wanted to establish a benchmark for an ‘unaffected stock price’ on T-Mobile before that rise,” the firm said. The leak also could send a message to other possible buyers or even to regulators that a deal could be on the way, BTIG said.

Adak Eagle Enterprises and its subsidiary, Windy City Cellular, met with an aide to FCC Chairman Tom Wheeler Monday to ask the commission to grant its petition for waiver of the per-line monthly caps on high-cost universal service support, an ex parte filing said (http://bit.ly/1jmUWlk). “The companies have embodied the very purpose of universal service by working hard and reinvesting USF support to maintain essential services -- including the only reliable 911 service, the only broadband service, the only wireline service, and the most comprehensive wireless service -- for residents, government agencies, business, and workers on Adak Island -- one of the most remote areas of the United States,” said the Alaskan carriers. The Wireline and Wireless bureaus’ rejection of the waiver request makes no sense “from a legal, policy, or fiscal perspective,” they said. “AEE and WCC are hopeful that the Chairman will promptly correct course before their interim relief expires in two weeks and the companies are forced into bankruptcy."

Sen. Mark Begich, D-Alaska, introduced telecom and broadcasting bills in the last two weeks, both referred to the Senate Commerce Committee. On Wednesday, he introduced the Rural Broadband Investment Act of 2013, S-1858. The bill proposes to end “well-documented flaws in the FCC’s 2011 Universal Service Transformation Order that caused financial burdens to small- and mid-size communications carriers operating in rural areas,” Begich’s office said, slamming the USF’s quantile regression analysis as “questionable statistical analysis.” His Thursday press release included statements of support from Greg Berberich, CEO of the Matanuska Telephone Association, and Alaska Telephone Association Executive Director Jim Rowe. Begich points to FCC Chairman Tom Wheeler’s recent announcement that he may end the quantile regression analysis, but Rowe said the “legislation is important to rural telecommunication companies because it not only addresses the QRA, but also two other important provisions within the transformation order which are the safety net additive and waivers.” According to a summary of the bill provided to media, the legislation creates a timeline for the FCC to develop an order “to ensure USF reforms are achieved in a manner that is both consistent with the nation’s universal service objectives and fosters those objectives.” Under the bill’s proposal, quantile regression analysis would be halted, and on an interim basis, “at a level equal to the combined operating and capital expenses the carrier had for calendar year 2011 adjusted for any revisions resulting from restoration of the Safety Net Additive or FCC action on a waiver petition,” Begich’s office said. The FCC would also have to file qualitative and quantitative analyses for the Senate and House Commerce Committees within 60 days of the bill’s enactment “assessing the amount of USF necessary to meet the nation’s universal service objectives over the next ten years and a specific analysis identifying the unique circumstances and resulting high cost fund support needed to provide and maintain universal service in Alaska and on Tribal Lands,” it said. On Dec. 12, Begich introduced S-1819, which would amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act “to provide eligibility for public broadcasting facilities to receive certain disaster assistance, and for other purposes,” according to its long bill title. Neither bill has cosponsors.

Americans, not Europeans, are leading the way on wireless and the use of data, CTIA President Steve Largent said in a Thursday blog post. “There is a troublesome trend occurring where some people are suggesting that the mobile environment in Europe is better for consumers than the U.S.,” Largent said (http://bit.ly/1i4TO4n). “This is bothersome and unfortunate since these individuals fundamentally fail to understand reality, or selectively choose facts to support their beliefs. Around the world, it is understood that the United States is leading the mobile revolution.”

American Public Transportation Association staff told the FCC the group’s members continue to have trouble “acquiring the radio frequency spectrum that is required to implement Positive Train Control (PTC) on publicly funded commuter railroads,” APTA said Wednesday in a filing about a conference call Dec. 12 with FCC staff. APTA members New Jersey Transit, Metro-North Railroad and Trinity Railway Express discussed their specific spectrum challenges, APTA said (http://bit.ly/1i4TXVj).

Data-driven marketing continues to drive “increasingly profitable returns,” said a Thursday release from the Direct Marketing Association about the trade association’s third quarter business review (http://bit.ly/1jmRKGB). “Confidence in data-driven marketing is growing steadily as profits increase -- and it’s no wonder,” said DMA President Linda Woolley. “Thanks to the unprecedented amount and quality of data now available, marketers are able to garner intelligence from consumer data more quickly and seamlessly than ever before. As a result, consumers also receive tremendous benefit, including vastly improved customization and relevance.” Survey responders said the availability and affordability of technology tools are creating more data-driven marketing opportunities, the release said. And mobile marketing investments “increased sharply ... outpacing social media investment rates for the first time,” said DMA. The Winterberry Group did research and analysis for the report, including an October online survey of DMA members. Of the 220 usable replies, 124 were from marketers and 96 were from providers of marketing services and technology solutions, DMA said.

The market outcome for the license fee under the retransmission consent paradigm may not be socially efficient, the Phoenix Center said in a white paper. The paper, released Thursday, said broadcast regulation “creates a type of positive information externality,” and private transactions don’t typically account for externalities, Phoenix said in a news release (http://bit.ly/JMx7nv). That means “the market price for the retransmission fee is theoretically ’too high,’ both relative to the socially-optimal price and the market price of an otherwise-equivalent cable network,” it said. This “spread” is a consequence of a disharmony “between the historical and continuing policy of the broadcast social contract and the ‘market’ approach embodied in the retransmission consent regime.” For there to be a true market solution to retrans consent, “Congress must eliminate, or meaningfully reduce the scope of, the social contract, including the various protectionist and support mechanisms given to the broadcast industry,” the paper said (http://bit.ly/190kpKN). Revising rules for network non-duplication and syndicated programming exclusivity would allow customers of multichannel video programming distributors access to highly desired network and sports programming, it said. However, given the retransmission of distant signals is also governed by contracts between networks and affiliates, “it is unclear how much help repeal of the exclusivity rules will actually provide.” Congress could amend the retransmission consent provisions of the Communications Act to allow the FCC to authorize interim carriage of a station by an MVPD pending the conclusion of a new agreement, it said. “This solution would continue to satisfy Congress’ substantial interest in having local commercial broadcast stations appear in MVPD channel packages."

Gray Television will sell two stations it’s in the process of acquiring from Hoak Media to Nexstar Broadcasting for $33.5 million, Gray said in a news release Thursday (http://bit.ly/1i4PKBf). The Hoak deal involves eight stations, and Gray announced plans in November to divest Hoak stations in Panama City, Fla., and Grand Junction, Colo., to satisfy FCC ownership rules. In a related deal, Mission Broadcasting, which is affiliated with Nexstar, will acquire another station from Parker Broadcasting, Gray said. The deals will increase Nexstar’s “portfolio of stations that it owns, operates, programs or to which it provides sales and other services” to 108 stations in 56 markets, reaching close to 16 percent of all U.S. TV households, said Nexstar a new release (http://bit.ly/JMnyoy).

Disney countered the Center for Digital Democracy’s filing with the FTC over Disney’s alleged noncompliance with the Children’s Online Privacy Protection Act (COPPA) Wednesday (CD Dec 19 p15). “Contrary to any suggestion in the press release and complaint filed by the Center for Digital Democracy, we are fully mindful of our obligations under COPPA and have robust processes in place to meet them. CDD never brought their concerns to us and instead issued an inflammatory and inaccurate release,” said Disney in a statement. COPPA, , which was revised a year ago by the FTC, gives parents more control over their children’s online data (CD Dec 20/12 p19).