Multiple operators behind a “massive mobile cramming scheme” will surrender more than $10 million in assets to settle FTC allegations they were placing unauthorized charges on phone bills, said the agency in a Friday news release (http://1.usa.gov/1p1P6Vq). The settlement also includes a total monetary judgment upward of $150 million for Lin Miao and companies he helped operate, the FTC said. The judgment was partially suspended due to an inability to pay after forfeiting all possible assets, including multiple luxury cars, several houses and a variety of Tiffany jewelry (http://1.usa.gov/1nBiJgW). The FTC alleged the scheme involved offering consumers text message services to receive “love tips,” “fun facts” or celebrity gossip news, then charging the consumers $9.99 a month without permission. Commissioners voted unanimously to approve the proposed stipulated order. The agency acted to shut down the operation in December (http://1.usa.gov/Jz71Em). Miao and his attorneys could not be reached for comment.

FCC Chairman Tom Wheeler will open Thursday’s workshop on the “Prevention of Mobile Device Theft,” the agency said in a public notice in Friday’s Daily Digest (http://fcc.us/1xUfRRE). Three panels are scheduled and the FCC will hear from carriers, equipment makers, local and federal law enforcement and other speakers. The session starts at 9 a.m, at FCC headquarters and is slated to wrap up after remarks at 2:15 p.m. by Dennis Roberson of the Illinois Institute of Technology and FCC Technological Advisory Council chairman. Among the goals of the session is to “explore ways that members of the mobile device community ... can improve collaboration with the law enforcement community in a collective effort to thwart mobile device theft,” the FCC said. It said the workshop will examine “ways in which more timely and accurate data about mobile device theft can be made available for both law enforcement entities and others, such as secondary market resellers.” The TAC is looking closely at the phone theft issue (CD June 11 p2).

Advert Marketing agreed to settle FTC charges it scammed individuals through millions of unwanted text messages promising $1,000 gift cards to retailers like Best Buy, Target and Walmart, the FTC said in a Thursday release (http://1.usa.gov/1legJXd). The company and two individuals operating it -- Scott Dalrymple and Robert Wence -- are “permanently banned from sending unwanted or unsolicited commercial text messages or assisting others in doing so,” the FTC said. The settlement includes a $4.2 million judgment, which is being partially suspended because of insufficient funds. Both individuals will have to pay the FTC $15,000 and destroy any consumer data they've collected. The commissioners voted unanimously to approve the final judgment.

LG’s G3 smartphone will come pre-installed with a customized version of McAfee Mobile Security that includes a anti-theft feature designed to protect users from unauthorized factory resets, the companies said Thursday. They said the security program has a kill switch that lets users disable their phone remotely if it’s lost or stolen and for content to be wiped to prevent personal information from being compromised. Smartphones have become a target for criminals because of the hardware value and the personal data consumers store on them, said the two firms in a news release Thursday (http://bit.ly/1liLBKO). A Creighton University study found Americans spend roughly $580 million annually replacing stolen phones. As part of a multi-year global partnership, the LG G3 is equipped with a “distinct version” of McAfee’s Mobile Security, which was activated on the phones beginning May 28, the companies said. Software features including antivirus, data backup, remote lock and wipe, and remote tracking are available via the McAfee app for five years at no cost, the company said. McAfee’s Mobile Security lock screen blocks factory resets and rooting attempts, requires password authentication, and can be controlled by the user from the device or the a Web console, the company said. Other LG users can download the software for free at the Google Play Store, but the kill switch will only be available on the G3, a McAfee spokeswoman told us. The partnership is not exclusive and McAfee will “continue to seek new opportunities,” the spokeswoman said.

Michael Calabrese of the New America Foundation indicated by email the group is taking a wait-and-see approach as the FCC moves forward on E-rate reform (CD June 12 p1 or WID June 12 p5). Support for internal connections, such as Wi-Fi, shouldn’t “come at the expense of needed investment in school-owned fiber and gigabit connectivity,” said Calabrese, a New America senior researcher. FCC Chairman Tom Wheeler “is correct that schools need resources for ubiquitous wireless connectivity, but schools also need resources and flexibility to make the upfront investments in gigabit capacity that makes Wi-Fi access meaningful,” he said. “Schools and libraries need to provision gigabit connectivity at least as much as they need the Wi-Fi routers to distribute it to users."

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 Public Safety Bureau approved Pima County, Arizona, Community College District’s (PCC) request for a waiver of an FCC requirement for licensees retooling their systems under the 800 MHz rebanding. The rules require licensees submit requests for system upgrades in lieu of rebanding facilities by the due date for their rebanding cost estimate. PCC submitted its cost estimate to Sprint in January, but then decided to migrate its operations to the Pima County Wireless Integrated Network. “Moving to PCWIN will provide seamless interoperability among public safety entities in the area, which capability is particularly critical during crisis situations such as the shooting of Rep. Gabby Giffords [D] in 2011,” PCC said, according to a bureau letter to the district Wednesday (http://bit.ly/1hPfbZ5). PCC is right that an “underlying purpose” of the requirement is “the avoidance of delay in rebanding that occurs when upgrade proposals are untimely made,” the bureau said. “PCC has successfully shown that such delay will not occur in PCC’s case. Therefore, grant of a waiver would not frustrate the purpose of the notification requirement."

The FCC Wireless Bureau released the agenda for two days of workshops on wireless siting issues (http://bit.ly/1l9qy8L). A June 24 workshop will focus on the environmental compliance and historic preservation review process required for the construction of wireless towers and other facilities. A workshop the next day will focus on the FCC’s review process on those issues for Positive Train Control facilities being installed by U.S. railroads. “Presentations will be given by FCC staff, representatives of Historic Preservation Officers, Tribal Nations, the Advisory Council on Historic Preservation, and other federal agencies,” the bureau said Wednesday. Both run from 9 a.m. to 4 p.m. at FCC headquarters, and Wireless Bureau Chief Roger Sherman will lead off both days, the bureau said.

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."