IT&E’s appeal against GTA application junked

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Posted on Oct 19 2011
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»Certificate of public convenience and necessity endorsed for Guam firm
By Moneth Deposa
Reporter

The Commonwealth Public Utilities Commission junked Monday the appeal filed by telecommunication company IT&E against the application of its competitor, GTA Services LLC, to set up shop in the Commonwealth.

In a five-page order released yesterday, hearing examiner Harry M. Boertzel said that IT&E failed to provide any comments during the prescribed period and, when it recently filed a motion to intervene in the proceedings, he said the company did not clearly set forth the grounds of the proposed intervention and the specific issues of fact or law to be raised.

He recommended that the commission issue a certificate of public convenience and necessity to Guam-based GTA so it could open business in the Commonwealth. He said that any delay in the issuance of the certification to GTA would be unfair.

Boertzel said that further administrative proceedings in GTA’s certification are untimely and not necessary to enable the commission to determine whether GTA’s certification is in the public interest.

“Further delay in the issuance of GTA’s certificate, which is intended to foster competition, would be unfair and counterproductive to this policy goal,” stated Boertzel in the order, adding that all material issues in GTA’s application are economically feasible.

These material issues include the need to regulate GTA’s tariff, the need to require GTA to post security to protect customer deposits, further review of its capital structure, and review of the company’s business plan to provide and maintain adequate and efficient telecommunications services.

IT&E had sought the commission’s permission to be allowed to intervene in GTA’s application for certification and to cross-examine GTA in the entire proceedings.

Commonwealth law requires that a company that wants to provide local exchange telecommunication services must first obtain a certification from the commission that its market entry would be in the public’s interest.

GTA filed its application for the certificate on March 22, 2011, pursuant to the commission’s administrative order on Nov. 16, 2009.

The commission’s independent regulatory consultant, Georgetown Consulting, has already recommended that the GTA application be granted. Georgetown determined that the company has the financial, technical, and managerial resources and abilities to provide the services. No public comments were received for its application during the prescribed period in July.

In earlier interview, Daniel J. Tydingco, executive vice president external and legal affairs of GTA, said that the company hopes for a favorable response to its application. Given the ties between the CNMI and Guam, Tydingco said he is confident that their planned investment on island will be a success.

According to its website, GTA Services LLC is a full-service communications firm serving Guam for over 40 years. Among the services it plans to offer in the CNMI include Internet and telephone services. Tydingco refused to disclose the amount the company plans to invest in the CNMI pending the commission’s approval.

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