MTC lobbies against proposed telecom body

Renewing its call against regulating the telecommunications industry, the Micronesian Telecommunications Corporation has urged the Senate against passing pending legislation creating a local commission that will oversee the sector.

The company instead pushed for a separate measure, which is also awaiting action by the senators, seeking to regulate and yet provide less restrictions to doing business for telecom firms on the islands.

HB 12-6, otherwise known as Commonwealth Telecommunications Act of 2000 offered by Rep. Rosiky F. Camacho, narrowly cleared the lower house last month despite strong opposition, primarily by MTC.

David M. Rogers, general manager of the CNMI’s lone domestic phone service provider, cautioned lawmakers against enacting the proposal, saying this will scare away potential investors on the islands despite growing opportunities worldwide.

“[W]e are troubled by the extremely intrusive nature of the proposed legislation, which appears to be in direct conflict with the federal policy on deregulation,” he said in a letter to the Senate Committee on Public Utilities, Transportation and Communications.

The panel, chaired by Senate Vice President Thomas P. Villagomez, is currently reviewing the bill hammered out by its House counterpart, which is also headed by Mr. Camacho, and has asked MTC and other telecom firms to submit comments.

While Mr. Rogers’ letter revived his earlier response to House PUTC, it detailed the company’s objection to several provisions as well as recommendations to the Senate for consideration before acting on the measure.

“Gorilla” commission

According to the top MTC executive, traditional regulatory structures sought under HB 12-6 have been “outdated” and “consistently abandoned” in other U.S. jurisdictions in order to attract investors.

He suggested instead that legislation must be passed to allow a fair system for regulating domestic telecommunications rates and a procedure for certifying telecom companies doing business here.

“If that type of model is adopted, then maybe the existing handful of alternative providers can compete — and maybe a few more competitors will choose to enter the Commonwealth’s comparatively small market,” Mr. Rogers explained.

“But if a regulatory ‘gorilla’ is to be built instead, they will not come — and those that remain will be encouraged to leave,” he added.

Under the pending proposal, a five-man commission will have the responsibility to regulate the sector as well as to establish guidelines, including rates and fees.

Proponents maintain the legislation will break the monopoly long held by MTC, while ensuring more consumer protection in terms of rate increase and service.

But opponents of the plan believe that the ambiguity on the regulators’ duties and responsibility and their wide-ranging scope of work will lead to existing telecom firms closing shop and potential investors ignoring the CNMI.

Mr. Rogers, in fact, expressed support for another bill, SB 12-54, that will seek the creation of a utility regulatory commission, encompassing telecom, power, water and cable television.

Such measure, sponsored by Sen. Ramon S. Guerrero, “is less prescriptive and… leaves more to be set in a rulemaking type proceeding where we may have input,” he said.

The proposed utility commission, added Mr. Rogers, should look at levelling the playing field and at imposing less restrictive regulations in order to help utility providers do business here and thus, boost growth of the local telecom sector.