A Michigan fund for rural ILECs wound down Friday after 12 years, the Michigan Public Service Commission said. The PSC created the intrastate switched toll access restructuring mechanism (ARM) in 2010 to give temporary assistance to rural ILECs to soften revenue loss from lowered intrastate access rates mandated by a 2009 state law. All Michigan intrastate retail telecom service providers and commercial mobile voice service providers had to contribute monthly to the fund. The PSC said Friday it had issued final monthly disbursements to 38 eligible providers. Over its 12 years, ARM collected about $162 million from a monthly average of 240 contributors, the agency said: The PSC distributed $157 million to eligible providers and used the rest for fund administration. The PSC said it will issue a final annual ARM report to Gov. Gretchen Whitmer (D) and the legislature by Dec. 1.
5G for 12 GHz Coalition leaders told reporters Thursday they still expect the FCC to act soon on changing the rules for the 12.2-12.7 band to allow two-way use for 5G. The officials hope the FCC will also soon approve a grant of special temporary authority allowing real-world tests. They noted the coalition now includes 38 companies and organizations.
Disney stands by its decision to raise pricing 38% to $10.99 monthly on the ad-free Disney+ offering, effective when it debuts the ad-supported Disney+ Basic tier in December (see 2208110015), CEO Bob Chapek told a Goldman Sachs investment conference Wednesday. “I think it’s what the market will bear, which is a direct reflection of price value, and I think we are way underpriced relative to the value that we provide,” said Chapek. “We owe it to our shareholders to try to get that recognized.” Disney has “lots of data” in terms of “what consumers’ intentions are,” he said. “Suffice it to say that we think we made the right move and we are still in some cases significantly under where our competitors are, which again speaks to that introductory price that we came out at.” Disney’s “whole approach” in evolving ESPN as an a la carte streaming service available outside the traditional pay-TV bundle is to “proactively prepare for that moment” without “prematurely” or “unnecessarily” disrupting the business "that it is today,” said Chapek. “Everybody knows” that the traditional cable bundle “is deteriorating over time, and we’re preparing for the moment when the consumer tells us that they are ready for such a step,” he said. “We’ve got tremendous abilities to read the marketplace and understand when it might be time to do that.” There are “significant benefits” to Disney maintaining its cable business, “but at some point, we see the writing on the wall where this is going, and we’re preparing for that,” he said. “But we’re not going to do anything rash or harsh, and we’re going to follow the consumer.”
FCC Chairwoman Jessica Rosenworcel plugged FCC proposals on orbital debris, (in-space servicing, assembly and manufacturing (ISAM) and the agency’s new focus on space, in remarks at the Global Aerospace Summit Wednesday. “Right now there are thousands of metric tons of orbital debris in the air above,” Rosenworcel said of the draft item set for the agency’s September meeting. The item proposes shortening deorbiting requirements from 25 years to five. “We need to address it. Because if we don’t, this space junk could constrain new opportunities,” she said. “I hope my colleagues will join me in this effort.” The FCC’s focus on space matters is intended to help the U.S. “lead in this new space age and emerging space economy,” she said. “I am proud to say that we have increased the size of the agency division responsible for satellite matters by 38 percent.”
The FCC won’t include funds for indirect full-time equivalents connected with aspects of the USF in calculating broadcaster regulatory fees but rejected many other broadcast proposals for reduced fees, said the FY2022 regulatory fees order and notice of inquiry released Friday. Radio stations that faced a 13% reg fee increase from 2021 will instead have an increase of 7% or 8%, broadcast industry officials said. Commissioners adopted the order unanimously Thursday. “Regulatory fees are not based on a precise allocation of specific employees with certain work assignments each year and instead are based on a higher-level approach,” said the order. Regulatory fees must be collected before the Sept. 30 end of the federal fiscal year.
T-Mobile, as expected, dominated the 2.5 GHz auction (see 2208300021), winning 7,156 licenses for $304.3 million, covering 2,724 counties, the FCC announced Thursday. But T-Mobile wasn’t the only bidder -- the FCC said 63 bidders won a total of 7,872 licenses. The auction had gross proceeds of $427.8 million. Among other large carriers, Cellular South bid $11.9 million for 38 licenses. Verizon won nine licenses for $1.5 million. AT&T and Dish Network didn’t get any licenses. AT&T had made an upfront payment of only $1,000, versus $20 million by Verizon and $25,000 by Dish. PTI Pacifica was the second-highest bidder, at $17.7 million. TeleGuam Holdings bid $16.6 million for the mid-band spectrum. By number of licenses won, the No. 2 bidder was North American Catholic Educational Programming Foundation, with 107, followed by Evergy Kansas Central with 54. “This really was T-Mobile’s auction,” Recon Analytics’ Roger Entner told us: “Everyone else either got the scraps that T-Mobile didn’t want or watched how it unfolded.” Down payments by winning bidders are due Sept. 16, final payments Sept. 30, the agency said. The FCC’s auction authority expires Sept. 30, absent action by Congress. “With most of the available spectrum in the 2.5 GHz band located in rural areas, this auction provides vital spectrum resources to support wireless services in rural communities,” the FCC said.
NTIA awarded Louisiana nearly $3 million in funding through the broadband, equity, access and deployment (BEAD) program and Digital Equity Act, said Special Representative for Broadband Andy Berke Wednesday during the state’s inaugural broadband summit (see 2207130047).
The FTC increased to $75 the cost of accessing a single area code beyond the first five free ones in the Do Not Call registry, beginning Oct. 1, said a news release Friday (see 2108240073). Access to an additional area code for six months will increase by $3 to $38. The maximum charge for accessing all area codes nationwide will increase from $19,017 to $20,740.
California bills to require wireless eligibility for California Advanced Services Fund (CASF) grants and to fund the 988 mental health line passed the legislature Thursday and will go to Gov. Gavin Newsom (D) for signature. As California legislators head into their final week, several communications bills on broadband, social media and free inmate calls await floor votes (see 2208120039).
California legislators passed a bill to add two local government officials to the Middle-Mile Advisory Committee, the state broadband group overseeing California’s in-development middle-mile network. The Assembly voted 77-0 Monday to concur with Senate amendments to AB-2256 after that chamber supported the bill 38-0 Thursday. Also Monday, the Assembly voted 77-0 for the Senate-passed SB-857 to extend until Jan. 1, 2028, California High-Cost Fund A and B programs, set to expire Jan. 1. CHCF-A is for small independent telcos; CHCF-B is for telcos serving areas where cost exceeds rates charged by providers (see 2204040040). The bill will return to the Senate to vote on concurring with Assembly amendments.