Warner Music Group (WMG), now 4th largest among the world’s top record companies, filed an IPO registration with the SEC Fri. in a bid to raise $750 million by selling common stock and apply the proceeds to pay down debt.

Antispyware companies are on the defensive, with the market struggling the past 2 weeks to draw the lines of legitimacy, as legislators have. A company widely branded as distributing spyware sent out legal demand letters objecting to the characterization. Microsoft -- which only days earlier had made a splash by starting to hand out antispyware software free -- apologized and paid a settlement to a Dutch firm it had tagged as a spyware provider. Reputable research firms have in some cases been lumped in with PC hijackers. Meanwhile, competing spyware bills simmer in Congress (WID Feb 16 p3).

Consumers Union and the Consumer Federation of America are calling on the Senate Judiciary Committee to hold a hearing on the recent telecom merger announcements. The consumers groups said scrutiny was needed urgently and before the mergers are completed. The consumers groups’ letter referred to the proposed AT&T-SBC merger and Verizon’s bid to acquire MCI. The letter said MCI’s decision to accept a smaller bid from Verizon than accept Qwest’s larger offer raised an “especially large red flag.” “The acquiring firm will claim that there are synergies, but there is a more likely answer that should be a concern to the Judiciary Committee: Market power,” the letter said. The groups said since MCI competed more vigorously in Verizon’s territory than in Qwest’s territory, a merger with Qwest would raise fewer competitive concerns. A Qwest-MCI merger would have a “weak regional base” that would have to compete outside its territory, the groups said, while the merged Verizon-MCI would be a dominant regional company “whose primary focus would be on solidifying its market power within its region.” “Antitrust authorities and regulators must now take a broader view of the industry structure and this Committee should send a clear signal that maximum competition is paramount,” the letter said. The groups said it might be considered early to hold hearings while the “deal making is not done,” but the mergers pose “an extraordinary challenge to the policy framework the Congress set for the industry in the Telecommunications Act” and the Committee should act immediately. The letter was sent to Senate Judiciary Chmn. Specter (R-Pa.), ranking Democrat Leahy (Vt.), Judiciary Antitrust Subcommittee Chmn. DeWine (R-O.) and subcommittee ranking Democrat Kohl (Wis.) DeWine and Kohl have already released a joint statement expressing concern about the merger and vowing closer scrutiny. The House Commerce Committee has tentatively scheduled a hearing on the topic for Wed., March 2.

Media mergers need to be held to a higher level of scrutiny than telecom acquisitions, Comr. Adelstein told reporters at a news conference Wed. “It has a direct impact on our free exchange of ideas and on our very democracy. The other mergers have impacts on our marketplace,” he said.

“Vested interests and political lobbying” are preventing the U.S. from fixing its -- and ultimately the world’s -- spam problem, Spamhaus investigator Richard Cox said Tues. With 80% of spam said to originate in Fla., other countries are looking to a “reluctant” U.S. for solutions, Cox said. But a U.K. govt. official said the U.S. is far from inactive in antispam activities. It’s more a question of “time and resources” than of the U.S. not wanting to address the issue, said Jean Jacques Sahel, Dept. of Trade & Industry (DTI) head of international communications policy. Both spoke at an Asia Europe meeting (ASEM) on e-commerce in London.

The NARUC Telecom Committee unanimously adopted 2 major policy resolutions. The first was an intercarrier compensation (ICC) resolution that urged the FCC in its new ICC reform docket to “carefully consider” the most recent version of an ICC reform proposal developed by NARUC’s ICC Task Force (CD Feb 14 p3). The panel voted approval after hearing a presentation outlining the main points of the ICC Task Force proposal, intended to send a signal to the FCC that the states are serious about obtaining prompt action to fix a collapsing ICC system. N.Y. Comr. Tom Dunleavy said the task force proposal “represents a Herculean effort by a large number of people to establish a solid starting point to move forward from.” N.D. Comr. Tony Clark said the task force proposal “isn’t a perfect plan, but there is no such thing as a perfect plan. This is a good plan and one that keeps the states’ foot in the door” as the FCC tackles ICC issues. In essence, the task force proposed a default compensation plan that would be used only when carriers are unable to negotiate other arrangements. It essentially would eliminate technology-based traffic distinctions and would transition compensation to flat monthly port charges over a 5-year period. It also would reform universal service by shifting contributions to a connection-based system. Secondly, the Telecom Committee unanimously adopted a resolution outlining state policy positions NARUC’s legislative task force should discuss as Congress considers a Telecom Act rewrite. The resolution specified 8 general policy principles which in essence held that any new or revised telecom act should be technology-neutral, reflect the relative interests and abilities of the state and federal jurisdictions, ensure timely resolution of policy issues by the appropriate jurisdiction, protect the multiple interests of telecom customers, and put regulatory focus on situations where markets have failed. Brian Adkins, NARUC legislative dir., said “the burden on states is to re-justify everything we do. Congressional perception of state commissions’ role will matter a lot.” The resolution included an attached list of 33 issues intended to serve as talking points for further refinement of the states’ position as Congress debates a new telecom statute. It was this list that raised concerns by several states who wondered whether it was binding the states to these specific positions. N.Y. Comr. William Flynn, chmn. of the legislative task force, said that wasn’t the intent. He said this resolution and its issues list didn’t represent NARUC’s final position on what a new telecom act should contain for the states. He said it was a way of putting everything on the table so it all could be discussed, refined and prioritized in coming weeks as Congress turns its attention to the Telecom Act.

The NARUC Telecom Staff Subcommittee advanced an intercarrier compensation resolution signaling the states’ general agreement the time has come for overhaul of the entire intercarrier compensation (ICC) system. The resolution, advanced unanimously at the NARUC winter meeting here, urged the FCC in its new ICC reform docket to “carefully consider” the most recent version of an ICC reform proposal developed from more than a year of consensus-building effort by NARUC’s ICC Task Force.

The Bells lined up against competitors on a Verizon petition seeking forbearance from Title II and Computer Inquiry rules as they apply to broadband service. The Bells said the broadband marketplace is highly competitive and the regulatory structures they face give cable providers in particular an unfair advantage. Competitors argued that Verizon wants to destroy competition. The 2 sides recently faced off in a similar battle over a BellSouth forbearance petition also before the Commission.

The FCC formally opened a rulemaking on intercarrier compensation (ICC) Thurs. to gain comment on 7 different proposals for unifying the varied regimes carriers use to reimburse each others. While the FCC action at its agenda meeting was far from unexpected, commissioners also revealed an undercurrent of disagreement about how the process should be conducted -- including how prominently an analysis by the Wireline Bureau should figure in the process. An FCC staff member said the further notice of proposed rulemaking (FNPRM) may be released as soon as next week. The item is considered one of the most significant telecom issues to be undertaken by the agency this year.

The House Commerce Committee approved indecency legislation (CD Feb 9 p9) Wed., sending to the House floor the same bill that passed the House with 391 votes last year. The measure passed committee 46-2, with only 2 Democrats voting against it.