Telecom regulatory body opposed • MTC says proposal runs counter to fed’s policy of deregulation

Implementing regulatory measures in the telecommunication industry will discourage potential investors and send those already in the sector away due to the unnecessary restrictions.

This was the argument put forth by the Micronesian Telecommunications Corporation during a public hearing yesterday conducted by the House Committee on Public Utilities, Transportation and Communications.

David M. Rogers, MTC general manager, said a bill under review by the committee is outdated and contradicts the federal policy on deregulating the industry.

“[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 testimony presented to PUTC Chair Rep. Rosiky F. Camacho.

Mr. Rogers was commenting on the proposed Commonwealth Telecommunications Act intended to slap regulatory measures on the growing sector in a bid to protect consumers and safeguard the island’s interests.

At yesterday’s hearing, private sector representatives were generally opposed to the bill which they described as too stringent and unnecessary in view of the trend in most countries where telecommunications have been accorded fewer restrictions.

Bob Webb, the governor’s special assistant for telecommunications, however underscored the need to create a government body to oversee their operations on the island.

Mr. Camacho, proponent of the bill that has been an offshoot of previous measures introduced in the Legislature that were not passed, believed such an agency is needed in order to safeguard consumer’s rights and improve their service to the people.

“Since 1996, the CNMI has been asked to establish the commission to look at the whole picture of the industry,” he told in an interview after the hearing. “We have to comply with the [Federal Communications Commission] rules.”

Regulatory commission

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

But Mr. Rogers argued this bill falls far short of the national public policy direction as he noted that other states are moving towards easing restrictions on telecom firms.

“Public policy-makers everywhere have come to realize it is all about attracting businesses, technology, jobs and investment. It is also about assuring Information Age access to education, health, government, and the world. Regulatory structures like that proposed … will not attract telecom providers to the Commonwealth,” he
said.

He suggested that the Legislature instead consider legislation on a fair system for regulating domestic telecommunications rates and a procedure for certifying telecom firms on the island.

This alternative, Mr. Rogers maintained, will allow open-market competition, particularly among small providers, and attract other companies to set up business here.

“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.

Because it is highly competitive, the market has self-regulating mechanism that takes care of the potential abuses such as overpricing and poor service. “No provider can compete if price and service are severely out-of-line with competitors,” said the MTC executive.

The House committee is scheduled to hold similar public hearings on Rota today and on Tinian on Monday. Mr. Camacho said they expect to come up with a report soon whether to endorse the proposal for voting.