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Business Digest
Regulators rule on LocalDial VoIP service

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The unanimous ruling marks the first time the state Utilities and Transportation Commission has squarely addressed issues involving voice over Internet Protocol (VoIP) technology. The decision was based on narrow facts, however, and does not represent a sweeping ruling in the emerging regulatory debate over VoIP service.

In the case of LocalDial, which claims "tens of thousands" of customers nationwide, including about 10,000 in Washington state, calls begin with an ordinary phone connected to a local phone network. LocalDial then converts the calls into digital packets before reconverting them into voice as the signal rejoins the regular phone network.

The company had asserted it was an "information service" rather than a "telecommunications service" and therefore exempt from paying access fees to hook into the regular phone network. But the UTC determined LocalDial's customers' use of ordinary phones and the conventional telephone network made the company a telecommunications service.

Commissioners took on the case after a federal judge in Tacoma said they were best equipped to consider regulatory issues that arose in a lawsuit brought by the Washington Exchange Carrier Association, a group of mostly rural phone companies in Southwest Washington.

The case now returns to court.

Dendreon board chairman to retire

Seattle biotechnology company Dendreon said Chairman Christopher Henney will retire from its board next week and will be replaced by board member Richard Brewer.

Dendreon said the change will take effect at its June 16 annual meeting. Brewer was formerly chief executive of Scios.

Henney co-founded two leading local biotechnology companies, Immunex and Icos, before joining Dendreon as president and chief executive officer in 1995. He stepped down as Dendreon CEO in December 2002.

Nation/world

LAS VEGAS — Mandalay Resort Group rejected MGM Mirage's $4.85 billion cash buyout offer that would have created the largest casino company in the world, saying yesterday that the $68 per share bid was insufficient.

A week of intense negotiations stalled Thursday when MGM Mirage declined to raise its offer, according to a person close to the talks. Mandalay had until last night to formally respond.

Insurance broker subpoenas issued

NEW YORK — Three more insurance companies said yesterday they have received subpoenas from New York State Attorney General Eliot Spitzer seeking information on the way brokers are paid.

Hartford, Conn.-based Aetna, Philadelphia-based Cigna and MetLife, of New York, announced yesterday they have received the subpoenas and intend to cooperate with Spitzer's industrywide probe.

Spitzer wouldn't comment, but earlier has said he is investigating whether brokers that help companies buy insurance had conflicts when accepting payments from insurance companies.

SEC probes Halliburton

HOUSTON — The Securities and Exchange Commission (SEC) is formally investigating allegations that a Halliburton subsidiary was involved in paying $180 million in bribes to get a natural-gas-project contract in Nigeria. Vice President Dick Cheney was head of the oil services conglomerate at the time.

Halliburton yesterday announced that the SEC has started a formal probe. The SEC's informal investigation of the contract was disclosed in February.

The SEC isn't alone in examining the contract, in which Halliburton subsidiary KBR, formerly known as Kellogg, Brown & Root, is a 25 percent owner. Nigeria has ordered an investigation, and a French magistrate has been probing the payments. The Justice Department is reviewing papers provided by Halliburton.

Compiled from Seattle Times business staff and The Associated Press