TELECOM

TELECOM

AT&T Says It Will Embrace 'Net Neutrality'

AT&T has told the Federal Communications Commission that it would accept a series of "net neutrality" principles if the commission approves the company's $81 billion proposed acquisition of BellSouth. AT&T's lawyers told the FCC that a paragraph regarding "net neutrality" had been erroneously left off a list of possible conditions that the company submitted Friday in an bid to break a deadlock between Democratic and Republican commissioners.

In the updated filing submitted later Friday night, AT&T said it could temporarily agree to principles assuring customers freedom in connecting to the Internet and using online services of their choice. But consumer advocates called those principles inadequate, saying they leave open the possibility that AT&T could discriminate among Internet services by charging them different prices for using its lines.

The FCC has delayed a vote until next month to give time for public comment on those and other conditions proposed for the deal.

STOCK options

KLA-Tencor Cancels Grants, Counsel Resigns

KLA-Tencor, a maker of semiconductor-testing equipment, said it found $400 million in costs related to backdated company stock options and canceled grants to former chief executive Kenneth L. Schroeder. General counsel Stuart J. Nichols resigned, and KLA-Tencor will re-price options given to him and Chief Operating Officer John H. Kispert, the San Jose company said. Current management, including Kispert, had no involvement in the options practices, the company said.

KLA-Tencor is among more than 140 companies to disclose internal or federal investigations of stock option practices to determine whether grant dates were manipulated to enrich employees.

MERGERS & ACQUISITIONS

McAfee to Buy Security Software Firm

McAfee agreed to buy Onigma for $20 million to strengthen its data loss-prevention programs. The Santa Clara, Calif., company said it will use Onigma's products as part of a new group of programs focused on security risk management.

McAfee is bolstering its offerings as competition intensifies from rivals including Symantec and Microsoft, whose new Vista operating system includes security features. Israel-based Onigma's programs monitor and protect proprietary and confidential data.

MTV Networks Buy Quizilla.com

Viacom's MTV Networks unit bought Quizilla.com, a Web site where teenagers share original works, from Gorilla Nation Media for undisclosed terms. Viacom of New York said that Quizilla is one of the five top online destinations for teenage girls and that it will join similar sites in the MTVN Kids and Family group. It said the site attracted 3.1 million visitors in September, according to ComScore Media Metrix.

Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.