Verizon, PTI speak out

We—Verizon Micronesia and Pacific Telecom Inc.—are writing in regard to the article in the June 17 Marianas Variety, “Verizon, PTI threaten court action vs. CTC.” In that article, members of the CNMI Attorney General’s office made statements that are untrue and misleading. We want to correct the record, and urge those lawyers to retract or correct their comments.

Brian Caldwell and Jay Livingstone—lawyers who represent the Office of Consumer Counsel and Governor Babauta, respectively—are quoted as claiming that Verizon Micronesia and PTI are “ignoring or repudiating” agreements we have entered into. Nothing could be further from the truth.

As stated in the article, we have written a letter to the CTC noting that we have reached agreement with the Governor and the Consumer Counsel on virtually all of their demands, and have committed to make significant concessions to obtain approval for PTI’s purchase of Verizon Micronesia. Our letter goes on to say that we “will perform in accordance with those agreed conditions and concessions” if the CTC approves the sale on the agreed terms. Does that sound like a “repudiation”?

We are committed to completing this transaction, and have agreed to provide major benefits in order to get that done. Among other things, once the sale has closed, we will:

* Eliminate all toll charges for calls between Saipan, Tinian and Rota;

* Freeze local telephone rates for two years, with further limitations on increases for the next three years after that;

* Invest at least $20 million in capital improvements to Verizon Micronesia’s network and systems over the next five years.

These are measures that will be costly to us, but we are committed to taking these steps to achieve the benefits of new and invigorated ownership of Verizon Micronesia. What we can’t agree to is the further demand the Governor is making—that we be stripped of the undersea cable that we have invested in and that we use to provide vital service to the CNMI. As we said in our letter to the CTC, this demand is unreasonable, it is outside the CTC’s authority with regard to this transaction, and by insisting on it, the Governor is jeopardizing the benefits that would result from the CTC’s approving the sale on the terms that have already been agreed to.

Mr. Caldwell called our letter an “intimidation tactic” against the CTC. We have no wish or intention to intimidate the CTC—and we have no power to do so. The CTC is empowered to regulate Verizon Micronesia, and it has the sole authority in the CNMI to approve or prohibit PTI’s purchase of Verizon Micronesia. As reported in the Variety earlier this week, the Governor seems to view himself, rather than the CTC, as the one who will decide whether the sale should go through. But that isn’t how it works in a democracy—the CTC, which we hold in high regard, is charged with making that decision as an independent agency.

Our letter to the CTC only requests the CTC to exercise its authority without further delay, since this transaction has been pending for over two years, and since the people of the CNMI will not receive any of the committed benefits until the sale is completed. We are confident that the CTC will honestly and diligently do its duty to the people of the CNMI, and to the company it is charged with regulating. We will continue to do ours.

Mr. Livingstone and Mr. Caldwell, set the record straight. Verizon Micronesia and PTI are honorable and will keep their commitments to the people of the CNMI. You should urge your clients to do the same, by letting the CTC make its decision without further roadblocks.

Jovino G. Lorenzo, Jr.
Vice President, Secretary and Director
Pacific Telecom Inc.

Anthony S. Mosley
General Manager
Micronesian Telecommunication Corp.