Creation of telecom regulatory body pressed

Alarmed by the merger of Bell Atlantic-GTE, the chair of the House Committee on Public Utilities, Transportation and Communications has sought support by Gov. Pedro P. Tenorio on the proposed regulatory body that will oversee the local telecommunications sector.

Rep. Rosiky F. Camacho stressed such commission is necessary to monitor the activities here that will stem from the merger since the terms and conditions of deal specifically include the CNMI.

He said any delay in the creation of the telecom body as he proposed in a pending bill would “eventually be at the expense of the citizens of the CNMI,” particularly on programs such as the Enhanced Lifeline Plans and E-Rate benefiting educational and medical institutions.

The Federal Communications Commission on June 16 approved the merger of Bell Atlantic and GTE under a $65 billion deal that will let them offer a bundle of telecommunications services under the name Verizon Communications.

Announced almost two years ago, the plan is expected to be completed by the end of the month, giving birth to the largest telecom company in the nation.

In the absence of a local regulatory body, Mr. Camacho warned this could impact on CNMI ratepayers as conditions of the merger initially opposed by the island government are now part of the deal.

“Please be advised that several of the proposed conditions by the… merger now specifically include the CNMI, are potentially contingent on the CNMI’s having a public utilities commission which would govern [its] activities” on the island, he wrote in a letter to the governor.

Mr. Camacho noted that one such condition requires the merged telecom firm to file a tariff to the state or local commission for an enhanced Lifeline plan in the area they serve.

The CNMI currently does not have such regulatory body, even though the Commonwealth Utilities Corporation has been mandated to function as one.

Pending

The House early this month passed legislation seeking to establish a five-man commission empowered to regulate the local telecom industry, but it is still pending with the Senate for further review.

Micronesian Telephone Company, a subsidiary of GTE-Pacifica and the sole domestic phone service provider here, strongly opposed HB 12-6 which it said would restrict growth of the sector due to the proposed regulations.

In his letter, Mr. Camacho appealed to Mr. Tenorio for help in expediting passage of the measure in the upper house as he noted the importance of such proposal in light of the Bell/GTE merger.

Last March, the CNMI government protested the tie-up of GTE Corporation and its subsidiaries to Bell Atlantic Corporation, saying the move would deny local residents access to telecommunications services at rates similar to urban areas in the U.S. mainland.

The House likewise backed the government’s opposition in a resolution sponsored by Mr. Camacho, calling the merger “appalling” since it would only disregard CNMI ratepayers.

The conditions and terms of the agreement, according to the resolution, would exclude the CNMI from safeguards solely due to its location as they will only be applicable in the states and territories where GTE operates, but excluding the Northern Marianas.

The Commonwealth would not be eligible to their programs offering discounts and other incentives intended to increase telephone subscribership, it said.

Lawyers representing the CNMI in Washington D.C. submitted its petition to FCC in an effort to block the transfer which they maintained was discriminatory because of its geographic-based differential treatment.