The FCC is the most likely roadblock to Sprint’s potential buy of T-Mobile, but a merger remains possible, even given concerns raised by FCC Chairman Tom Wheeler, said BTIG analyst Walter Piecyk Tuesday in a blog post. “Chairman Wheeler has voiced his skepticism about the potential for a Sprint/T-Mobile deal but we believe he is well suited to evaluate the transaction on its merits,” Piecyk wrote. “The wireless industry not only faces new competition from more Wi-Fi buildouts but can also offer new competition to the wired broadband industry. Competition is not just about lower prices but also about investment in the network, a reality that is likely to be recognized in several European markets that are evaluating the benefits of consolidation.” Piecyk said T-Mobile and Sprint together are investing less in their networks than either AT&T or Verizon individually. “Even today, Sprint offers the slowest LTE speeds in the industry as a result of its under-investment and its narrow use of spectrum,” he said. “Meanwhile, T-Mobile recently paid $2.03/MHz/POP for the worst of available 700 MHz spectrum because they did not have the capital to adequately compete in the original 700 MHz auction.”

FirstNet’s board met for about 50 minutes in closed session Tuesday, before returning and announcing no actions had been taken. “There are matters that FirstNet will discuss from time to time that require closed meetings, and that includes when confidential and commercial information is being discussed or privileged or confidential matters, personnel matters and other legal matters,” said Uzoma Onyeije, secretary of FirstNet.

The FCC sought comment on a TextMe petition asking the agency to clarify the meaning of the term “capacity” as used in the Telephone Consumer Protection Act’s definition of “automatic telephone dialing system,” said a Consumer and Governmental Affairs Bureau notice (http://bit.ly/1hxHEvf). TextMe also asked the FCC to clarify “that users of TextMe’s service, instead of TextMe itself, make or send calls or text messages for purposes of the TCPA. In the alternative, TextMe requests that the Commission clarify that third-party consent obtained through an intermediary satisfies the TCPA’s ‘prior express consent’ requirement for calls and texts to wireless numbers.” Comments are due May 7, replies May 22. Last month, the FCC offered some clarity on other questions raised about the TCPA (CD March 31 p7). TextMe said by offering clarity, the FCC could help curb TCPA-related class-action lawsuits. “Rather than discourage the abusive marketing practices that Congress and the Commission found harmful to consumers, these lawsuits stifle innovation and threaten the development of novel tools for communication,” TextMe said (http://bit.ly/QY49EP). “Commission action is necessary to prevent the TCPA from being read so broadly as to deprive consumers of access to innovative products and services.”

Cincinnati Bell said it plans to sell spectrum and tower assets to Verizon Wireless for $210 million -- $194 million in cash and $16 million in tower liabilities. Cincinnati Bell’s spectrum holdings include 40-50 MHz in the PCS and AWS blocks in the Cincinnati and Dayton markets and 12 MHz in the 700 MHz A block in the Dayton market. The deal is set to close in the second of half of the year, subject to regulatory approvals. Cincinnati Bell said it will lease back some of the spectrum via Grain Management so it can continue to operate its wireless services for 8-12 months. Cincinnati Bell said it will provide further transition information to its wireless customers as the closing date for the deal approaches. The carrier had 340,000 wireless subscribers at the end of 2013 in the Cincinnati and Dayton markets, and adjacent areas in southeast Indiana and northern Kentucky. The deal does not affect Cincinnati Bell’s wireline operations. It had “become economically challenging for us to invest in our wireless business at the levels necessary to deliver best-in-class service to our customers,” said Cincinnati Bell CEO Ted Torbeck in a Monday news release. The deal will allow Cincinnati Bell to focus on the “growing demand” for its Fioptics services, he said (http://bit.ly/1gECDB0).

The FCC Public Safety Bureau reminded government licensees with 700 MHz narrowband spectrum they have only until June 13 to demonstrate they are providing substantial service to at least one-third of their population. The requirement covers spectrum in the 769-775/799-805 MHz bands. The licensees face a five-year benchmark filing in June and a 10-year filing in June 2019. “State Licensees that do not meet the interim substantial service benchmark, e.g., because they have failed to construct or receive funding for any facilities by the June 13, 2014 deadline, will be subject to license cancellation or modification, and recovered State License spectrum will revert to General Use subject to regional planning,” the bureau said (http://bit.ly/1emrHbn). “Bureau staff will issue subsequent guidance to regional planning committees to facilitate the licensing of any recovered State License spectrum."

Spectrum aggregation limits in Canada’s recent 700 MHz auction meant a more competitive auction, with higher prices and competitive carriers winning some of the spectrum, University of Maryland economist Peter Cramton said in comments filed at the FCC on behalf of T-Mobile. “The main lesson from the Canadian 700 MHz auction is that well-crafted spectrum-aggregation limits can succeed in encouraging valuable competition in the mobile industry without sacrificing auction revenues,” Cramton said (http://bit.ly/1gVIerq). “Were the Canadian auction conducted without limits, it seems likely that the regional operators would have been pushed aside by the much stronger Big 3.” Rogers “as a result of a network sharing arrangement between Bell and Telus had the most to lose if it failed to get” the A and B blocks, he said. “Rogers competed aggressively for AB and won in all the major markets paying CD$4.32 per MHz/POP, about twice the overall average auction price of CD$2.32. The C block also commanded a high price.” Like the Canadian market, the U.S. market is highly concentrated, Cramton said. “In the U.S., the Big 2 [carriers] have 67 percent market share and hold roughly 80 percent of the low-band spectrum, which is best-suited to providing coverage within buildings and in more difficult terrain. Were the Big 2 to dominate the 600 MHz auction, competition in the mobile broadband market would be harmed.” Also on spectrum aggregation, Verizon disputed arguments in a T-Mobile white paper, the T-Mobile USF Mobile Model Report (http://bit.ly/1efEsUX). “T-Mobile recently submitted a cost study analyzing deployment costs in rural markets for different types of spectrum,” Verizon said (http://bit.ly/1i85oqI). “That study provides no support for T-Mobile’s claim that it or any other firm is in danger of being ‘foreclosed’ from competing effectively in any market. The economic evidence shows there is no valid basis for the Commission to abandon its longstanding and successful policy of assigning spectrum to those firms that value it most and that will put it to use promptly to serve their customers."

The Minority Media & Telecom Council said it’s disappointed that the designated entity rules weren’t updated to enhance diverse competition for the forthcoming AWS-3 and broadcast spectrum incentive auctions. MMTC continued to urge the FCC to eliminate the attributable material relationship rule, increase bidding credits to at least 40 percent and prioritize diversity and inclusion in secondary markets, it said in an ex parte filing in docket 07-294 (http://bit.ly/PnSBtm). MMTC also urged the FCC to collect data on minority and women-owned business enterprises from carriers to help the commission determine whether the wireless market is competitive, it said. MMTC asked the commission to use forms 175 and 602 to gather race and gender information. The filing pertains to a meeting with staff from Chairman Tom Wheeler’s office.

Zoning boards can’t rely on the environmental effects of radio frequency emissions when denying a permit to build a cellphone tower, said the 4th U.S. Circuit Court of Appeals on Thursday (http://1.usa.gov/1mF9YAZ). The court upheld a lower court reversal of the Loudoun County Board of Supervisors decision denying T-Mobile the permit in Lovettsville, Va. Relying on radio frequency environmental effects is “a statutorily prohibited basis for regulation,” the appeals court said. But the 4th Circuit upheld another decision by the board denying permits for construction of a communications tower disguised as a bell tower. “A denial of the permits would not have the effect of prohibiting T-Mobile from providing personal wireless service to its customers,” said a three-judge panel of the Richmond, Va., court.

Verizon customers can now send emergency text messages to public safety answering points (PSAPs) in 60 jurisdictions, up from 46 in January, the carrier said in a report filed at the FCC. “Verizon plans to offer PSAPs the choice of three Text-to-911 options, two of which are already available, and the third of which is currently the subject of a first office application” in Indiana, the carrier said (http://bit.ly/1pYeM6p). “Each of these options also provides a bounce-back message capability.” Wireless carriers agreed in 2012 to file quarterly progress reports at the FCC on making text-to-911 a reality, a priority of both Chairman Tom Wheeler and former Chairman Julius Genachowski. AT&T also reported progress, including the selection of Intrado as its Text Control Center (TCC) vendor. “Our Vermont text-to-911 trial transitioned to Intrado on March 5th and will remain in operation in advance of and subsequent to AT&T making text-to-911 service available to PSAPs on a nationwide basis,” AT&T said (http://bit.ly/1lrDfiE). “AT&T is also in the process of launching additional trials. Specifically, we launched a first field application trial in Durham, N.C., on March 13th to test our i3 text-to-911 interface. Later this week, we plan to launch an additional first field application trial in York County, S.C., to test our web browser interface solution, with a final trial to be launched shortly afterwards in Cabarrus County, N.C., to test our text-to-TTY [text telephone] conversion solution.” AT&T said it has received 32 requests for text-to-911 service taking in 105 individual PSAPs and four statewide operations. “Sprint expects to meet its commitment of making text-to-911 service available by May 15th, as we are finalizing the terms of the contract with the vendor which will act as Sprint’s Text Control Center,” Sprint said (http://bit.ly/1pYkvcq). “We also continue to participate in standards bodies and industry working groups and have been engaged in cooperative efforts with public safety answering points ... across the country.” T-Mobile said it has received 22 requests for text-to-911 service covering 194 PSAPs. “T-Mobile implemented its first successful text-to-911 service with Montgomery County, N.Y.,” on Nov. 20, the carrier reported (http://bit.ly/1pWeB9W). “While T-Mobile had hoped to implement service with several other PSAPs who have chosen the same TCC vendor in March, PSAP scheduling constraints prevented that from happening. We do plan on implementing the service with those same PSAPs in April.” T-Mobile said it has raised concerns at the FCC about the lack of full interoperability and interconnection between major TCC vendors, “which could potentially force both carriers and PSAPs to connect to multiple TCCs."

TracFone has been working with healthcare organizations, “including most of the leading Health Maintenance Organizations,” since 2012 to enroll Medicaid patients in its SafeLink Wireless Lifeline program, it said in an FCC filing. In addition to standard SafeLink features, including a handset and 250 minutes a month of airtime, the Medicaid members get unlimited text messaging with their healthcare provider, toll-free member services calling and Health Insurance Portability and Accountability Act-compliant communications with their providers, TracFone said (http://bit.ly/1lC4GJ9). The program has been a success, the carrier said. “It has improved access to health care providers for the Medicaid community, and has resulted in cost savings for the providers,” TracFone said. “More importantly, it has facilitated real time communications between health care providers and patients.”