Telecoms regulatory body pressed anew

In light of new fees imposed on telephone subscribers, House communications committee chair Rep. Rosiky F. Camacho has underscored anew the need to set up a regulatory body to oversee the sector as he chided CUC for its failure to do its job.

He said the Commonwealth Utilities Corp. does not have the capability to monitor the local telecommunications industry, claiming the agency only wants to keep the $500,000 franchise fee paid annually by MTC.

“The telecom sector is growing fast and the CNMI is sitting under the coconut tree waiting for things to happen, which will not do good for us,” the legislator said in an interview.

“We need to act now and keep with the flow of the development in the industry,” he added.

Mr. Camacho sponsors the legislation seeking the creation of telecommunications commission whose main function is to impose regulations. The measure is pending with the Senate.

While the government-owned utility corporation has such responsibility under existing law, he stressed CUC officials have been lax in regulating the industry.

“That will be the work of the commission — to study and work hand in hand in the development of the technology so that we won’t be cheated with another fee imposed on our telephone bills,” he said.

MTC, the lone domestic phone service provider on the islands, began charging four to 32 cents in the monthly billing of its customers to reflect new regulations under Universal Service Fund.

Mr. Camacho maintained CUC should have come up with its own regulations on the matter since this is part of its mandate. He added utility officials have pledged to draw up the guidelines soon.

“The bottom-line is they are not really against regulations, but that they are afraid we are taking away the franchise fee,” he explained. “If we come up with a different body just to handle the telecom, then they are going to be losing half-a-million dollars.”

Both CUC and MTC have opposed the House bill because of its potential impact on future investors who may be discouraged to set up shop here due to stringent regulations. They also noted that other states have begun deregulating their telecom sector.

“MTC wants it under CUC simply because MTC knew ever since that CUC cannot do the job. We need experts and board members who will dedicate time to handle the job they are appointed to… If you are a board member, do your job,” said Mr. Camacho.

He maintained the proposed telecom commission will be specifically empowered to do their job right in the industry that needs policing.