CNMI protests GTE-Bell Atlantic merger plan
The CNMI government has protested the planned transfer of licenses of GTE Corporation and its subsidiaries to Bell Atlantic Corporation, saying the move would deny local residents access to telecommunications services at rates similar to urban areas in the U.S. mainland.
Gov. Pedro P. Tenorio has petitioned the Federal Communication Commission to deny the application sought by the telephone firms for consent of the transfer.
GTE has subsidiary in the Commonwealth — the Micronesian Telephone Company which is the lone domestic phone service provider on the three main islands of Saipan, Rota and Tinian.
The House of Representatives yesterday adopted a resolution supporting the governor’s petition as it slammed the transfer “appalling” since it would only disregard CNMI ratepayers.
Sponsored by Rep. Rosiky F. Camacho, chair of the Public Utilities, Transportation and Communications, the measure specifically objected to the “proposed conditions” attached to the transfer.
It maintained these terms exclude the Commonwealth from safeguards solely due to its location as they will only be applicable in the states and territories where GTE operates, but excluding the Northern Marianas.
“[T]he ‘proposed conditions’ would prevent CNMI ratepayers from having access to telecommunications services reasonably comparable to those in urban areas at rates reasonably comparable,” stated the resolution.
If FCC grants GTE and Bell Atlantic’s application, the Commonwealth will not be eligible to their programs offering discounts and other incentives intended to increase telephone subscribership.
Lawyers representing the CNMI in Washington D.C. have already submitted its petition to the federal agency to block the transfer which they say is discriminatory because of its geographic-based differential treatment.
“There can be no doubt that the… proposed conditions subject ratepayers in the Commonwealth to ‘unreasonable prejudice or disadvantage’ by excluding them from the safeguards offered under the [terms],” said the petition signed by attorney Thomas K. Crowe.
GTE and Bell Atlantic “have not attempted to — nor would they be able to — justify such blatant discriminatory treatment,” it added.