Recent moves by wireless carriers to cuts prices, including Sprint Nextel’s likely move to a $40 pre-paid rate plan for unlimited wireless data, provide additional evidence that the industry is competitive, officials said this week. The topic has been a sore point since the FCC approved the latest version of its annual wireless competition report, which unlike previous reports does not find that the U.S. wireless market is competitive (CD May 21 p1).

Consolidation in the wholesale satellite capacity market has made it less competitive than other satellite markets, said Spacenet, in comments to the FCC. The company was responding to the International Bureau’s public notice requesting information for the annual satellite competition report. The wholesale market is “dominated” by Intelsat and SES World Skies, which “now control some 83 percent of the data network services transponders serving the U.S.,” said Spacenet, which buys wholesale capacity from operators. New entrants to the market are unlikely since Intelsat and SES World Skies already control or have rights to 2/3 of the 31 orbital slots able to provide service to the U.S., they said. The agency shouldn’t treat all satellite capacity as “fungible” since a change in satellite providers is a difficult process, requiring major adjustments to terminals and earth stations, Spacenet said.

An appeals court’s recent reversal of an FCC finding that unscripted curse words aired during prime time broadcasts are indecent could be applied to another case involving the appearance of a woman’s buttocks, the U.S. government said. The case on fleeting swear words reversed by the 2nd U.S. Circuit Court of Appeals in New York (CD July 14 p1) wasn’t on the subject of scripted airing of nude adults, as occurred in the 2003 NYPD Blue episode now at issue. Yet the three-judge panel’s decision on Fox v. FCC “does not turn on such distinctions,” said the government’s brief.

The FCC is putting out feelers to industry leaders and interest groups on the Universal Service Fund contributions formula, industry lobbyists said and records show. The commission said in April it was overhauling broadband regulations and overhauling the service fund and has said it plans a rulemaking notice in the fourth quarter. In recent days, lobbyists and industry leaders have been at the FCC for various ex parte meetings.

Questions about what kinds of pay-TV distributors are entitled to use the FCC program access rules to seek carriage of vertically integrated-programming are better answered in a separate rulemaking, rather than in the context of a condition to approval of the Comcast-NBCU merger, Time Warner Cable argued in its reply comments in the merger review. Such a rulemaking could also answer questions about online distributors’ duties to provide closed-captioning and the emergency alert system, it said. “To the extent these issues need to be addressed, the full range of OTT [over-the-top] providers’ regulatory responsibilities should be considered in a proceeding of industry-wide scope, instead of adopting a standalone condition that would purport to give online entities rights under the program access rules,” it said.

A record spectrum donation of as many as 155 low-power TV stations from a non-profit religious broadcaster to a group that trains women and minorities to run stations points up the sagging market for TV stations of all types, said brokers and executives we interviewed. That Trinity Broadcasting Network, the world’s largest Christian TV network, is giving up most of its low-power TV (LPTV) stations to the Minority and Media and Telecommunications Council illustrates the recent dearth of deals for LPTV and full-power broadcasters, they said. Trinity will keep about 95 of its LPTV stations and upgrade them to digital, said attorney Colby May, who represents the broadcaster. He estimated it may cost $100,000-plus to upgrade from analog each station being donated by Trinity, which had been assessing its portfolio of 250 LPTV stations.

Congress shouldn’t require mobile devices to include FM-radio chips, six manufacturers and wireless service providers said in a letter Monday to House and Senate Judiciary Committee leaders of both parties. CTIA, CEA, TechAmerica, the Telecommunications Industry Association, Rural Cellular Association and Information Technology Industry Council questioned the NAB’s and MusicFirst’s right to make the proposal in the groups’ performance royalty talks. The CEA and CTIA had objected to any legislation sought by radio broadcasters and music labels requiring chips in cellphones (CD Aug 16 p5).

The FCC needs to act to enact network neutrality rules, said Commissioners Michael Copps, Mignon Clyburn and Sen. Al Franken, D-Minn. At a community gathering sponsored by Free Press in Minneapolis late Thursday, they also criticized the Verizon-Google proposal and warned of the proposed Comcast-NBC Universal merger. Meanwhile, members of the Information Technology Industry Council met multiple times this week seeking a joint understanding of net neutrality, a spokeswoman confirmed Friday. The group represents companies like Microsoft and Cisco.

Sorenson was alone seeking one compensation rate for all video relay service providers under the interstate Telecom Relay Service fund, in comments at the FCC last week. Sorenson is the biggest VRS provider and is paid the least under the current system. Responding to a notice of inquiry about taking a “fresh look” at the VRS program and reducing fraud, Sorenson’s rivals and consumer groups representing the deaf urged the FCC to maintain the current tiered approach, with some minor changes.

The burgeoning market in online video is “highly unlikely” to become a full-fledged pay-TV competitor anytime in the “foreseeable future,” Comcast, NBC Universal and NBCU parent General Electric told the FCC. Consumers and programmers alike see Web video as a complement to and not substitute for service from multichannel video programming distributors (MVPD), they said in the last round of comments on commission review of Comcast’s planned purchase of control in NBC Universal. Union and telecom foes of the deal represented by ex-FCC Chairman Kevin Martin and companies including EarthLink disagreed with Comcast and NBC Universal in filings posted Friday to docket 10-56. They and direct broadcast satellite companies contend the rapid growth of online video, in some instances including over-the-top Web programming seen on TVs, is making it more of a competitor to cable.