An arduous process that is sure to bear fruit

By Paul A. Manglona

There can be no doubt that the Verizon sale to Pacific Telecom Inc. was a long and arduous process. The Commonwealth Telecommunication Commission deserves great credit for fulfilling its mandate by protecting the rights and interests of everyone in the CNMI. The hard work of the Governor and his administration, notably consumer counsel Brian Caldwell and assistant attorney general James Livingstone, deserves recognition. And, of course, our gratitude must be extended to PTI for demonstrating patience and good faith throughout the process. PTI’s faith in the people of the Commonwealth should not be forgotten.

Recently, Governor Babauta has been criticized in the media and has been accused of unnecessarily prolonging the process. I recognize everyone’s right to express his or her opinions. I merely would like to add mine.

I feel Governor Babauta exhibited great leadership, and I am grateful for his efforts on behalf of the people of the Commonwealth. Governor Babauta realized that this historic moment “is the first time the people of the CNMI have had the opportunity to determine to whom the essential telecommunications assets on which we all depend should be entrusted and under what terms those assets should be operated.” He decided that the time was right for necessary corrective action to protect the interests of the people, and I agree with him. In fact, I feel the time was long overdue.

Some feel that Governor Babauta’s handling of the issues reflects an “anti-business” stance. While I do not speak for the Governor, I do know that the Senate seeks to foster responsible and productive investments into the Commonwealth’s economy, and Governor Babauta’s actions seem consistent with the Senate’s goals. Any investor seeking to acquire a communications business must realize that the telecommunications field is (quite rightly) a highly regulated industry and will be scrutinized much more closely than almost any other investment. To be frank, I do not expect that other investors in other fields will have to go through such a thorough process. Further, all future investors can take comfort, secure in the knowledge that the Commonwealth’s telecommunications issue have been resolved, and businesses can quite rightly expect exceptional telecommunications service. I think investors will appreciate all that has been accomplished on their behalf.

For example, one issue that has been simmering for years is the inter-island toll. As acting governor, I signed Public Law 10-14 (the Fiber Optic Communications Facilitation and Competitive Telecommunications Act of 1996) on June 18, 1996. Prior to its enactment, I sent a letter to Mr. Robert Enfield, General Manager of Micronesian Telecommunication Corp. regarding this inter-island service issue. I expressed my belief that a call from Songsong Village to San Antonio Villiage should cost no more than a call from Susupe to San Antonio. After all, we are one Commonwealth.

This belief was enshrined in P.L. 10-14, which requires the provision of services “to the islands of Saipan, Tinian, and Rota, uniformly so far as reasonably practicable, in a nondiscriminatory manner, at uniform rates throughout the islands without additional charges or tolls for services connecting one island to another.” Notwithstanding that clear language, an inter-island toll was imposed.

On April 18, 1997, and every year thereafter, we wrote letters following up on the issue in an effort to relieve many of our citizens from the burden of additional costs to call family and friends within our home islands. We even supported litigation to enforce our rights. Civil Action No. 97-1098 was filed by the Attorney General’s Office and is still pending.

Almost nine years later, we’re still paying 14 cents per minute for an inter-island toll while the law states that it should be free. If not for the leadership of Governor Babauta and the thorough review by CTC, we would probably have to wait another nine years before the CNMI as a whole was to receive that to which it has been legally entitled since 1996. I have been informed by CTC that, within approximately 30 days, the inter-island toll will no longer exist. This is great news for everyone in the Commonwealth, and PTI, its board, CUC and Governor Babauta deserve our thanks.

If the resolution of the inter-island toll issue was all that was accomplished by Governor Babauta’s chosen course of action, I would still have to respectfully disagree with those who describe the process as a “farce.” The Governor has been taken to task for considering litigation when the “consultant company hired jointly by both sides believes that the cable divestiture issue could be resolved through a cooperative effort facilitated by a 3rd party.” It bears noting that, were it not for Governor Babauta, there would never have been a consultant company hired in the first place.

Further, it bears remembering that the cable divestiture issue appears to be the only remaining major issue. Governor Babauta and his administration has, indeed, already worked with third parties to accomplish a great deal. Mr. Sean E. Frink, Esq. served as a mediation hearing officer. Mr. Frink is a past president of the NMI Bar Association and is a man of honor and unimpeachable character. Of the results of the third party meetings. Mr. Frink stated, “In conclusion, I am proud of the results of these negotiations. The parties have spent a great deal of time and money working these issues out amongst themselves. The CTC was wise to send the parties into these negotiations. The results speak for themselves.” Apparently, Mr. Frink did not believe he was participating in a farce. Neither did CTC. I don’t think so either.

Far from merely exercising their authority whimsically, Governor Babauta and CTC have taken prudent (thought, admittedly lengthy) steps to:

* ensure that PTI makes specific commitments to bring the best technology to the Commonwealth;

* protect MTC’s current employees and make certain that future hiring and promotions to management positions will be done locally;

* guarantee that there will be no increases in long distance rates for years;

* encourage and foster future competition in the Commonwealth;

* stipulate to financial protections, so that we will know that PTI will be run in a safe manner;

* ensure that CTC had the information it needed to make sound, informed decisions; and

* foster future oversight by agreeing to support a bill that the Legislature supported and is now Public Law 14-53 to provide the needed resources for CTC and the Office of the Consumer Counsel to properly do their jobs.

These accomplishments did not occur overnight. I imagine both PTI and Governor Babauta would have preferred to reach this accord months ago. That obviously did not happen, and I can see how some would look backward and bemoan the length of time it took to reach an agreement. I choose to glance back and appreciate the accomplishment for what it is: an agreement that protects all of us in the Commonwealth. But mostly, I look forward to a future where the people of the CNMI enjoy the exceptional service PTI is sure to provide at reasonable rates.

In closing, I am grateful that PTI has chosen to share its future with us. And I am equally thankful that Governor Babauta has done all that is in his power to ensure that our joint future will be productive and fair for everyone.

(Paul A. Manglona is an incumbent senator representing the first senatorial district and is a former Senate president. He is currently the majority floor leader.)