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."

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.

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.

T-Mobile filed at the FCC a list of counties, or parts of counties, it serves in which it can’t use triangulation to locate callers to 911. All made the list “because of insufficient quantity, density, and/or geometry of cell sites in those areas to support network-based triangulation,” T-Mobile said. The nine-page list (http://bit.ly/1beRGhZ) adds 62 counties to the previous list from 2011. The FCC’s 911 location-accuracy rules require carriers to identify callers with a defined level of accuracy on a county-by-county basis, but provide exceptions where dense forestation or the lack of triangulation mean those levels can’t be reached.

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).

The FCC is “broken” and takes too long to respond to technological change and solve problems, said the Minority Media and Telecommunications Council in a response to the commission’s call for suggestions on how to revamp procedures (CD Dec 6 p3). MMTC’s comments propose a litany of procedural tweaks to improve the commission’s speed and responsiveness to diversity issues and tech advancements. The list includes the creation of a National Broadband Plan Advisory Committee to update the commission’s broadband plan every two years to “keep pace” with “disruptive technologies,” allowing commissioners other than the chairman to bring an item up for vote and a U.S. Supreme Court-style cert process for applications for review. MMTC also suggested commission procedure could be sped up if major decisions were each assigned a specific commissioner to shepherd them so they move “through the agency to the 8th floor expeditiously.” On diversity, MMTC suggested the Enforcement Bureau create a Civil Rights Division, that the commission hire a chief diversity officer, and that a commissioner could take responsibility “for inclusion and competitive opportunities for minority- and women-owned business enterprises.” Most of the suggested reforms could be adopted without congressional action, said MMTC. “Most of them would cost nothing and could produce savings for the Commission, as well as growth, job creation and diversity for the regulated industries."

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).

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 FCC Media Bureau fined Billy Ray Locklear Evangelical Association $7,200 for failing to file children’s television programming reports on time and filing incorrect Class A certifications for its station WLPS Lumberton-Pembroke, N.C., said a Media Bureau forfeiture order (http://fcc.us/18Ueq7a). The fine was reduced from $9,000 because of the association’s history of compliance. The bureau also fined Central Ohio Association of Christian Broadcasters $3,000 for late children’s television reports and failing to report the violations on a renewal application for its station WGCT Columbus, Ohio, said a forfeiture order (http://fcc.us/1fIOPmo). Campbellsville University, licensee of WLCU Campbellsville, Ky., was also fined $3,000 for late children’s TV reports, said a forfeiture order (http://fcc.us/1beZmkq).

DirecTV, Dish Network, American Cable Association and others continued to urge the FCC to take action on the retransmission consent regime. The commission can prohibit separately owned TV stations from coordinating their retransmission consent negotiations, the multichannel video programming distributors, as well as Charter and Public Knowledge, said in an ex parte filing in dockets 10-71 and 09-182 (http://bit.ly/IZ6ZF7). The FCC can protect consumers caught in the middle of retransmission consent disputes “by establishing dispute-resolution mechanisms and requiring interim carriage in the event of negotiating impasses,” the filing said. The commission can take such actions in the context of either its 2010 rulemaking considering changes to its retrans consent regime or its pending 2010 quadrennial media ownership review, “or address them in both proceedings,” it said. “But it cannot simply permit the status quo to continue consistent with its statutory obligations to protect consumers and competition.” The filing recounted a meeting with Adonis Hoffman, chief of staff for Commissioner Mignon Clyburn.