House pushes bill to regulate telecoms

The chair of the House Committee on Public Utilities, Transportation and Communications yesterday vowed to push legislation seeking to regulate the local telecommunications industry that he said is necessitated partly by the controversy on inter-island calls between the government and MTC.

Rep. Rosiky F. Camacho disclosed a committee report on the bill he introduced, otherwise known as the Commonwealth Telecommunications Act, will endorse the proposal to the House in order to establish a regulatory commission overseeing the growing sector.

He expressed hope that the Senate will approve the measure, noting that it is important to put in place regulations that will help the CNMI deal with the anticipated entry of other telecom companies into the island.

This is the third time in four years that the Legislature is advancing the proposal. In 1996, a similar bill was passed by the House, but stalled at the upper chamber. Last year, another legislation derailed due to differences on how to go about it.

Under Mr. Camacho’s proposal, a five-man commission will have the responsibility to regulate the sector as well as to establish guidelines, including rates and fees.

He recommended setting a uniform rate to ensure that residents from Rota, Tinian and Saipan will be paying the same amount for the same telephone usage.

MTC, the lone domestic phone service provider in the Northern Marianas, earlier has expressed opposition to the plan, saying that the proposed regulatory measures would only discourage potential investors and send those already in the sector away due to the unnecessary restrictions.

The bill is also outdated and contradicts the federal policy on deregulating the industry.
The Legislature must instead consider legislation on a fair system for regulating domestic telecommunications rates and a procedure for certifying telecom firms on the island, according to MTC’s comment to the committee.

This alternative would then allow open-market competition, particularly among small providers, and attract other companies to set up business here.

But Mr. Camacho maintained opening the industry to other investors must also come under regulation by the government through the proposed commission that will be tasked to oversee their operations here.

“The politicians will no longer step in and get involved everytime there are problems in their operations,” he said.

He cited for instance the current dispute between the government and MTC over the toll fees charged for callers to and from Rota, Tinian and Saipan with threats to bring the issue to court. Matters such as this will be within the scope of the proposal, according to Mr. Camacho.

“Does MTC want to deal with other carriers who want to link their system with its existing facility?,” asked the representative. “If this regulatory commission is established, they will be the ones to that for them.”

The Commonwealth Utilities Corporation, on the other hand, said it will continue meeting with the House committee to discuss provisions of the bill.

“Our committee is researching it now, looking into ways to clarify CUC’s action, and other obvious matters,” said board member Frank T. Flores, who heads the Telecommunications Committee of CUC, during a recent meeting.