Senate backs Verizon sale

Citing a 90 percent resolution of issues, the Senate unanimously voted yesterday to adopt a special committee report supporting the sale of Verizon from Micronesian Telecommunications Co. to Pacific Telecom Inc.

“We’re very close to finalizing the sale of Verizon. Almost all of the issues raised have been addressed except for two items,” special committee chair Sen. Diego Songao said in yesterday’s session, even as he noted that the sale negotiation may finally reach an agreement by October this year.

He said that of 31 issues, 29 have been resolved by parties involved—including Verizon, PTC, the Federal Communications Commission, and the Attorney General’s Office.

Only two issues remain to be addressed: the minimum capitalization and financing investigation and the inter-island cable.

“The parties feel that the first issue will be resolved quickly. The second issue will take a bit longer,” Songao in special committee report 14-01.

The senator said that based on the parties’ estimate, CTC would be able to resolve all issues in eight to nine weeks or about October this year.

“The [special] committee is satisfied with the efforts put forth to date by all involved…,” said Songao.

During yesterday’s session, Senate minority leader Pete Reyes expressed his support for the committee’s recommendation “to put an end to a seemingly endless bickering” between the Babauta administration and PTI.

“As you can see, when a certain issue is resolved, the administration would raise a new [one]… It’s an endless [cycle]. If the adoption of this report would put an end to that cycle, I’m in favor of it. We want the sale to go on. Get this on. We support it,” said Reyes.

He noted the administration’s handling of the sale would send “a very negative message to foreign investors.”

The Senate report, according to Songao, was made after conducting a joint hearing with the concerned parties, “and after much discussion and deliberation.”

The committee said it finds that the parties, under CTC, “have been diligently attempting to resolve the issues that need to be settled prior to the sale of Verizon to PTI.”

In the same report, the committee recommended raising the CTC funding to the previous level of 2.5 percent.

“CTC is not properly funded to investigate regulatory complaints and an increase is necessary if it is to properly regulate the industry,” said the committee.