PHONE SECURITY DEPOSIT CUC urges MTC to justify policy

In response to a House inquiry, the Commonwealth Utilities Corporation has sought justification from the Micronesian Telecommunications Corporation for a recent change in its security deposit policy.

Frank T. Flores, chair of the telecommunications committee of the CUC board, expressed dismay over MTC’s failure to inform the government-owned utility corporation about the change.

“[W]e are troubled that MTC failed to bring this issue before our board, especially because you have been making regular appearances,” he wrote in a letter to Anthony Mosley, acting general manager.

“We are also concerned that ‘policy’ is determined by a way of general manager’s memorandum to staff, as opposed to documents that are distributed to customers,” added Mr. Flores.

The utility official likewise warned of stricter regulations if CNMI’s lone domestic phone service provider does not involve its customers on decision-making.

“The lack of proactive consumer participation will likely force more stringent regulations by the Legislature. In the meantime, our committee is tasked with this responsibility and we are acting on behalf of only the consumers,” he said.

Rep. Rosiky F. Camacho, chair of the House Committee on Public Utilities, Transportation and Communications, has pressed CUC to look into the policy change, noting that his office has received complaints from the community.

He said the policy change has been implemented since January of this year without the knowledge of utility officials, which was not supposed to happen since CUC has regulatory power over the telecom sector.

In the past MTC would refund good standing customers their security deposit after a year through credit on their account. Under the new policy, it will be refunded only once the account is closed.

“Since MTC implemented [the policy] eight months ago, we realize that most of the information we request is readily available, and should be transferred now,” said Mr. Flores.

In a separate letter to Mr. Camacho, he disclosed MTC notified members of the House and the Senate regarding the policy change. But he assured the PUTC chair that a report will be forthcoming once the inquiry is complete.

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.