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Probe MTC’s deposit policy
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Posted on Sep 05 2000
The chair of the House Committee on Public Utilities, Transportation and Communications has pressed the Commonwealth Utilities Corporation for justification on a recent policy change regarding security deposit imposed on local telephone lines.
Rep. Rosiky F. Camacho has been inquiring CUC, which is tasked to oversee local phone companies, whether it is aware of such decision following complaints from the community.
He said the policy change has been implemented by Micronesian Telecommunication Company, the sole domestic phone service provider.
In the past MTC would refund good standing customers their security deposit after a year through credit on their account, the Saipan representative told CUC Board Chair Jesus T. Guerrero in a letter.
The complaint claimed MTC changes that policy in January this year, he added.
“I was wondering if the CUC board was aware of such change in policy? If so, please provide a copy of MTC’s security deposit policy,” said Mr. Camacho.
The PUTC chair has raised the issue since July, but the government-owned utility firm has yet to respond to his inquiry.
Mr. Camacho authored HB 12-6 or the Telecommunications Act of 2000 which seeks to regulate telecom companies operating in the CNMI, including MTC.
He maintained that such legislation is necessary to break monopolies and encourage other investors in the growing sector to come in.
Opponents have argued that a regulatory agency is not necessary as it would stifle growth and expansion of the telecom industry, noting that CUC can monitor operations of those companies.
Passed by the lower house in June, the measure is under review in the Senate.
