Senate may scrap creation of telecom regulatory body

The Senate is likely to scrap legislation seeking establishment of a commission to oversee the telecommunications sector on the islands, derailing efforts by the lower house to regulate what it said as high fees passed onto consumers.

Senate Vice President Thomas P. Villagomez, who also chairs the telecommunications committee, said they would rather give the Commonwealth Utilities Corp. the authority to perform such regulatory functions.

“This is a such a small community that creating another autonomous agency with additional manpower will be too costly for the CNMI,” he told reporters in an interview.

Instead of a new telecom commission, CUC should be given the opportunity to regulate the sector as it has the mandate under existing laws, according to the senator.

“Let’s give them the chance to prove themselves. They can utilize their own [authority]” he explained. “They may still have to hire professional people, but even if we create the commission, I still believe that CUC should continue in monitoring the industry.”

Mr. Villagomez pointed out that CUC board director Frank Flores, who heads the telecommunications committee in the policy-making body, has pledged to draw up regulations so that the government-owned utility corporation can begin to serve its mandate.

Public Law 4-47 authorizes CUC to regulate the sector, but critics have maintained it has not been able to do so due to limited staff and technical expertise.

The House has cleared HB 12-6, otherwise known as the “Commonwealth Telecommunication Act,” following a four-month committee review by its PUTC chair Rep. Rosiky F. Camacho.

The Senate PUTC has yet to act on the measure for the past six months, although Mr. Villagomez maintained it would certainly overhaul the proposal if it is sent to the floor for voting.

“I’ve mentioned since day one that the Senate doesn’t feel that we should pass the bill as it is. We will be doing an amendment as recommended by CUC,” he said.

Mr. Camacho, main sponsor of the pending legislation, has been pressing for the proposed telecom body because of CUC’s failure to monitor the operations of MTC, the lone domestic phone service provider on the islands.

The telephone company has opposed the bill, claiming it could drive away potential investors in the sector due to stringent regulations at a time when other states and jurisdictions are beginning to deregulate them.

Last week, Mr. Camacho chided CUC for its failure to act in light of the new fees imposed on telephone subscribers as he underscored anew the importance of a separate commission.

The utility corporation does not have the capability to meet its responsibility to consumers since it hasn’t implemented any regulations nor monitored the fees and rates, according to the representative.

MTC has begun charging four to 32 cents in the monthly billing of its customers to reflect new regulations under Universal Service Fund.