Private utility providers shun disconnection bill

At least three private utility companies in the Northern Marianas have expressed strong objection to a pending measure that would require them to give delinquent subscribers advance notice prior to disconnection of services.

Officials of Verizon Micronesia, Marianas CavleVision and IT&E Overseas, Inc. were one in saying that provisions contained in House Bill 12-306 would be unfair to customers who pay their dues on time.

HB 12-306 seeks to require telecommunication firms to provide a 30-day written notice prior to disconnection of service and to permit continued access to 911 emergency services and access to the provider for 90 days from date of suspension.

In a letter to Rep. Rosiky Camacho, Verizon general manager David M. Rogers said the proposed measure’s heavy handed regulatory approach is “unwarranted and outdated.”

Mr. Rogers added that this would come as an undue penalty to about 94 percent of the telecommunications company’s customers who pay their bills on time, adding that Verizon has sets of disconnection policies that are implemented fairly.

“Those who pay their bills on time will subsidize the customers who do not pay on time. When Verizon incurs additional costs for printing of late notices, postage and other administrative costs, these may be passed on to the 94 percent of paying customers as an added cost of doing business,” he explained.

“The 90-day requirement that you have attached in your draft is entirely too long to ‘give away’ services since there are no other business entities within the Commonwealth that are subject to these conditions,” said Mr. Rogers.

He pointed out that the bill should require the CNMI government to provide subsidies to Verizon and Northern Marianas residents in order to offset the costs to install emergency services if the proposed measure’s intent is to ensure consistent access to 911.

The cost for 911 emergency access and the regular telephone line is the same because both requires the same network elements to be operational, he said.

At the same time, MCV general manager Joe Butters noted that HB 12-306 is “both unnecessary and potentially harmful” to the cable company since it strives to operate within a specific level of economic efficiency.

“We believe that regulation is unnecessary because Marianas CableVision already engage in a disconnection policy that gives our customers sufficient time and warning when their account becomes delinquent,” Mr. Butters said.

MCV policies allow customers with an accumulated balance to enter into a promissory note which allows them to stagger out payments on a large back balance.

If a customer does not follow the schedule of the promissory note, they would be disconnected, according to Mr. Butters.

“If we were to follow the letter of the bill, we would then wait an additional 30 days only to serve notice for the ‘intent to terminate.’ This would delay the customer’s payment even further, creating a likelihood of someone going more than two months without having to pay cable TV,” he added.

Meanwhile. IT&E assistant vice president Guadalupe P. Flores said consumer safeguards in the areas discussed in Mr. Camacho’s bill should be left to the marketplace and voluntary company practices.

“IT&E urges that the Commonwealth rely on the maximum extent possible on marketplace forces, rather than regulation, to assure reasonable carrier practices concerning disconnection for nonpayment,” said Ms. Flores.

She suggested that any regulation should only require carriers to provide access to 911 within a limited time-frame of 15 days after termination of other services.