C Spire said it agreed to buy IP communications provider MegaGate Broadband in order to expand and diversify its services. MegaGate is a local exchange telco and ISP for southern Mississippi. C Spire began offering 1 Gbps fiber in nine Mississippi cities in September and has said it plans to open a $23 million Tier III+ data center in Starkville in November to power its enterprise cloud services. C Spire did not disclose the financial details of the deal but said Wednesday it expects final regulatory approval within 60 days (http://bit.ly/1hPrLb1).

The Competitive Carriers Association slammed the FCC Connect America Fund order, after it was released Tuesday night. (See related report above in this issue.) CCA President Steve Berry said in a written statement that the order is biased against wireless. “Many smaller carriers depend on USF support to provide mobile services in the most costly areas” of the U.S., he said. “Without it, they may not survive and consumers will not have wireless services in many areas. The Order does absolutely nothing to promote or even preserve competition."

Samsung dominates the fledgling smart watch market, with the Samsung Gear accounting for 78 percent of revenue, followed by Pebble with 18 percent, said NPD. Total market revenue was $96 million since October, NPD said, with a third of the units sold during the 2013 holiday season. Twenty percent of consumers say they're interested in buying a smart watch, led by the 30 percent of 16-24-year-olds who showed interest, it said, while a quarter of 25-34-year-olds reported interest. Across all age groups, cost was cited as the number one barrier to adoption, with average selling prices fluctuating between $160 and $257. Samsung’s bundling the Gear with Note and Galaxy smartphones has brought the average price to $189, NPD said. Smart watches have become more affordable as manufacturers “eye the opportunity to add them to smartphone purchases almost as an accessory,” said NPD analyst Ben Arnold. Prices will continue to decline as the market diversifies with budget, mid-level and premium offerings, he said.

The FCC Wireless Bureau sought comment on a May 27 petition by T-Mobile seeking clarity on criteria used to determine whether the terms of a data-roaming agreement meet the “commercially reasonable” standard set forth in FCC rules. Comments are due July 10, replies Aug. 11. “T-Mobile contends that providers need this guidance to evaluate the commercial reasonableness of terms offered in individual negotiations and to reach agreements,” the bureau said Tuesday (http://bit.ly/UryM7r). A sharply divided FCC approved the data-roaming requirements three years ago (CD April 8/11 p1).

The FCC relaxed the out-of-band emissions (OOBE) limits for Broadband Radio Service and Educational Broadband Service licensees. Much of the 2.5 GHz spectrum is in the hands of Sprint. The change will “facilitate the use of wider channels,” which in turn means faster data rates and allows the adoption of such technologies as LTE-advanced (http://bit.ly/1jidEWc), the FCC said in an order Monday. “The record shows that changes to our OOBE standards are necessary to facilitate development of a device ecosystem that would fully take advantage of wider channels in the 2.5 GHz band.” The change conforms FCC rules to emission mask standards established by 3GPP for 20 megahertz channels, allowing manufactures to produce equipment that can be used outside the U.S., the agency said. The 3GPP organization develops global standards for LTE. The change can also be made “without materially increasing the potential for harmful interference” to licensees in adjacent bands, the FCC said.

The FCC terminated a 2006 rulemaking proceeding looking at possible changes to rules for the Multilateration Location and Monitoring Service (M-LMS) bands, in an order released Tuesday. The proceeding examined future use of the 904-909.75 and 919.75-928 MHz bands. M-LMS licensee Progeny had sought the rulemaking in 2002, citing the “continued failure” of the bands. But there was little agreement when the FCC took comments eight years ago (CD June 1/06 p4). “We find that wholesale changes to existing M-LMS framework that the Commission sought comment upon in the M-LMS NPRM are not warranted and that the types of revisions that the Commission sought comment [on] are not necessary to provide sufficient flexibility to M-LMS licensees to provide their location services,” the FCC said now (http://bit.ly/1nvVmp1).

The Competitive Carriers Association asked the FCC to set the short-form application deadline for the AWS-3 auction at a date that would let carriers discuss the auction without fearing they have violated anti-collusion rules at the group’s early September trade show. CCA asked for a Sept. 24 deadline, but said “at a minimum,” the deadline should be Sept. 12, which follows the conclusion of CCA’s annual show in Las Vegas. CCA said both CTIA and CCA are slated to meet the week of Sept. 7. CTIA did not file comments on the AWS-3 auction procedures, a spokeswoman said Tuesday. “A wide range of wireless industry representatives … are expected to be in attendance at those conventions and to participate in business negotiations and panel discussions regarding a broad range of wireless industry topics including the AWS-3 auction,” CCA said. “To ensure ample participation at the conventions and to provide certainty to industry participants that these activities will not run afoul of the anti-collusion rules, CCA requests that the anti-collusion period not commence until after the conclusion of the conventions.” Even a Sept. 24 deadline would allow “an ample period of almost two months” for the processing application before the auction starts Nov. 13, it said. CCA also asked the FCC to clarify that long-form applications and the corresponding final payments will be due in 2015. CCA also “reiterates” its limited request that the agency waive the enhanced upfront payment requirement for some bidders found to be in default on debt owed to federal agencies. The filing was made Monday in docket 14-78.

Sony Mobile agreed to pay $400,000 and put in place a three-year compliance plan after the FCC found it violated hearing-aid compatibility rules. Sony had failed to offer the requisite number of compliant handset models for 11 of the 12 months of the 2011-2012 reporting period, said the Enforcement Bureau Tuesday in an order (http://bit.ly/1kMMYRX). “The failure to comply with these rules reduces the availability of hearing aid-compatible handset models and potentially limits the ability of consumers with hearing impairments to access advanced telecommunications services.” Sony had no immediate comment.

"Robust” Wi-Fi networks are critical to schools and libraries and funding such wireless connections should be a focus of the agency as it expands the E-rate program, FCC Chairman Tom Wheeler said in a blog post. Wheeler told of a visit he made to Robinson Secondary School in Fairfax, Virginia, on Thursday. The visit demonstrated that Wi-Fi to each student’s desk “is the essential component of interactive, personalized instruction tailored to each student’s strengths and weaknesses,” Wheeler wrote Friday (http://fcc.us/1mxw729). While almost 60 percent of U.S. schools in America lack “sufficient” Wi-Fi, “far too many schools have no Wi-Fi at all.”

The FCC Enforcement Bureau proposed a $10,000 fine against Dalrymple Realty for “apparently failing to clean or repaint” an antenna in Elmira, New York, “as often as necessary to maintain good daytime visibility.” Lights were installed on the 320-foot tall structure, but weren’t operating the day FCC agents made their inspection, the bureau said (http://bit.ly/1pWYihq). “Dalrymple informed the agents that the white obstruction lighting had been in place in lieu of painting for approximately ten years.”