jim_duffy
Managing Editor

Ex-WorldCom directors agree to settle suit

Opinion
Jan 14, 20052 mins

Plus: Minnesota Public Utilities Commission plans to appeal FCC VoIP ruling, SBC plans IP-based TV rollout

Bad boys get spanked… Ten ex-WorldCom directors have agreed to pay $18 million out of their own pockets to settle a suit with the New York State Common Retirement Fund. The personal payment is part of a $54 million deal the lawyers for the former executives struck with the state. Board members who have agreed to a settlement include Clifford Alexander, secretary of the Army during the Carter administration, and James Allen, former CEO of Brooks Fiber, one of the more than 70 companies WorldCom acquired in the 1990s. (Read the story)

The Minnesota Public Utilities Commission plans to appeal a November decision by the FCC prohibiting states from regulating VoIP services, such as those offered by Vonage Holdings. The commission’s chief concern over the FCC ruling was how E911 services would be implemented by VoIP carriers without state regulation. Commissioners also expressed concern over whether VoIP providers would contribute to the federal Universal Service Fund, which subsidizes phone service in rural and poor areas, and what services VoIP carriers would provide to people with hearing loss. In November, the FCC ruled that Vonage-style VoIP service should be free from most state regulation because the service can’t practically be separated into intrastate and interstate components. (Read the story)

SBC will roll out IP-based TV, high-speed Internet access and VoIP offerings for home users this year, the company said at the Consumer Electronics Show in Las Vegas. Components of SBC’s U-verse suite of services include a residential VoIP service that features a Web-based portal offering call-management features such as “find me” and “do not disturb”. It also includes a home entertainment service integrating satellite TV programming, digital video recording, photo sharing and music through a new set-top box service using the SBC Yahoo interface. SBC will also unveil a package combining the company’s VPN services with unlimited access to its FreedomLink WiFi and wireless Edge services aimed at mobile workers; and unified communications, combining voice mail, e-mail and faxes into one mailbox. This service is available now, but will be enhanced over the coming months. (Read the story)