Backers of the Missoula plan to reform FCC intercarrier compensation rules reached terms with 5 states guaranteeing “early adopter” states that already have cut intrastate access charges won’t be hurt by broader changes. Regulators from Ind., Me., Neb., Vt. and Wyo. sent the FCC a letter endorsing the agreement, filed as an amendment to the plan.

The Transportation Security Administration (TSA) and the Coast Guard have issued a final rule on the biometric-based Transportation Worker Identification Credential (TWIC) for all personnel requiring unescorted access to secure areas of Maritime Transportation Security Act (MTSA)-regulated facilities and vessels, and all mariners holding Coast Guard-issued credentials

The FCC may stand fast on its policy of not fining TV broadcasters for violence in a report expected soon and sought by Congress in 2004, said an FCC official. The report will surface as commissioners, legislators and advocacy groups voice concern over what they deem a growing problem (CD Jan 12 p11). The report answers a request by lawmakers including Rep. Joe Barton (R-Tex.), then House Commerce Committee chmn., that the Commission study violent programming’s effect on children. Chmn. Martin has circulated a draft for colleagues’ comments, said FCC officials. Martin decides what the report contains, since it’s not a rulemaking, said a staffer.

Take-Two Interactive admitted Mon. that it had made mistakes on its stock option practices, but the company largely blamed ex-CEO Ryan Brant. In granting options, the company “failed in many cases to comply with the terms of its Stock Option Plans [and] did not maintain adequate control and compliance procedures for option grants and did not generate or maintain adequate or appropriate documentation of such grants,” the company said in an SEC filing. Its Compensation Committee also “abdicated its option granting responsibilities and permitted… Brant to control and dominate the granting process,” the company said, adding that April 1997-Aug. 2003, Brant “engaged in a pattern and practice of backdating options and during such period, a significant number of option grants appear to have been backdated.” But Take-Two said a board special committee that investigated the issue found “there has been no pattern or practice of backdating for option grants” since Aug. 2003. Take-Two’s auditors “may not be able to rely upon representations made by certain of the company’s past employees and past members of management as a result of conduct related to option granting activities,” it said. There’s “no evidence that the company’s current senior executive management,” including CEO Paul Eibeler and CFO Karl Winters, “engaged in any conduct raising concerns about the reliability of their representations to the company’s auditors,” it said. The evidence also “shows that none of them engaged in any misconduct with respect to the company’s option granting practices,” Take-Two said. It was also found that board members and ex-Compensation Committee members Oliver Grace and Robert Flug didn’t engage in “willful misconduct or other dishonest acts.” Take-Two had already said it must restate historical financial statements to record charges for compensation expense relating to certain past stock option grants. Therefore, all consolidated financial statements, earnings releases and similar communications issued by the company containing financial information 1997- April 2006 “should no longer be relied upon,” it said. The company and its current and former independent auditors are still reviewing the special committee’s report on stock option practices to determine the stock-based compensation charges and the related tax and accounting impact on the financial statements for the fiscal years ended Oct. 31, 1997-Oct. 31, 2006, it said. Take-Two plans to file “as soon as practicable” its 10-Q SEC report for the quarter ended July 31, 2006 and its 10-K for the year ended Oct. 31, 2006 with the SEC, it said. The company received a written staff determination letter Thurs. from Nasdaq, stating that Take-Two’s failure to file with the SEC for the past fiscal year “serves as an additional basis for delisting the company’s securities,” it said. But once the filings are made and Take-Two holds its combined 2005 and 2006 annual shareholders meeting, the company “believes that it will be in compliance” with listing requirements, it added.

of Compliance for

The EU ministers of Home Affairs and Justice will take on violent videos and computer games, starting with a survey of controls on such content in all 27 EU member states. At a meeting of ministers that ended Tues., German Minister of Justice Brigitte Zypries said survey data will appear on the “Insafe” website, a specialized site funded by the Commission.

Cable operators denied CableCARD waivers will find the 8th floor sympathetic, said agency officials. Commissioners seem aware that not waiving the looming set-top box navigation and security ban could raise cable operators’ costs, said communications lawyers. Wed., Comcast became the first cable operator to appeal a Media Bureau waiver denial (CD Jan 11 p1). The FCC must vote on such appeals.

The Office of the U.S. Trade Representative (USTR) has issued a notice announcing that Mexico has requested the establishment of a World Trade Organization (WTO) dispute settlement panel (DSP) concerning certain U.S. antidumping (AD) orders against stainless steel sheet and strip in coils from Mexico.

Cable operators that are denied CableCARD waivers will find a sympathetic FCC, said Commission officials. Commissioners seem aware that not waiving the looming set-top box navigation and security ban could raise cable operators’ costs, said communications lawyers. Wed., Comcast became the first cable operator to appeal a Media Bureau waiver denial(CED Jan 11 p1). The FCC must vote on such appeals.

The FCC broadcast ownership review is likely to remain separate from a reworking of cable caps, agency officials said. They said Chmn. Martin tried to merge the rulemakings but lost out because colleagues wanted them addressed separately. In 2006 Martin twice floated proposals to meld the efforts, most recently around Sept., an FCC official said. Other Commissioners didn’t find a good reason to combine the broad media limit review -- prompted by a 3rd U.S. Appeals Court, Philadelphia remand -- with a cable limit reworking ordered in 2001 by the U.S. Appeals Court, D.C., FCC officials said.