‘Cut telecommunications monopoly’

In hopes to open more business opportunities, officials of the Commonwealth Utilities Corporation are contemplating on providing an alternate bill that will deter monopoly on telecommunication services.

CUC Board Telecommunications Committee Chair Frank T. Flores Jr. raised the need for a law that will offer more long distance telephone services, force competition and will correct the present telecommunication management.

He said the proposal would even boost the economy of Northern Marianas and will provide more telephone companies, adding that this would result to the services becoming user-friendly.

The alternate statutory proceeding stemmed from the passage of House Bill 12-6 which creates a telecommunication regulatory commission and now sits on Gov. Pedro P. Tenorio’s’ office for approval.

Mr. Flores pointed out that the bill is only a duplicate of CUC’s functions and will stifle the telephone competition. In fact, the commission will open the door for another financial problem since the government will appropriate funds for the hiring of employees, salaries, building rentals and utilities.

“Can our Chamber of Commerce, hotel association, garment manufacturers, the big businesses that depend on big telecommunication services, actually support the creation of another, duplicate government agency?” the committee chair asked.

With this problem and the proposed alternate law that will break monopoly, Mr. Flores urged the governor to veto the bill and make way for the alternate law which will create a field of competition and will boost the local economy and promote protection of customers from bad telecommunication practices.

“The CUC has already established administration to handle customer disputes and punish companies that do not comply with what the public wants, we are ready, we have the regulations,” said Mr. Flores.

With the proposed law, consumers will be protected and will have the opportunities to choose the company they want while HB 12-6 does not address firms and issues other than Verizon, he said.

Earlier economic studies have in fact identified the Commonwealth’s potentials to attract investments based in telecommunications.

Reports said growth and development of the local telecommunications industry is equally important since it can be the basic infrastructure that may support the development of other key industries.

These technology-based industries include data processing, financial services and telemarketing. The telecommunications industry is capital intensive and creates high-paying jobs, generating substantial revenue.

But the CNMI government would have to take a thorough review before efforts to promote a data processing industry are put forward since this sector requires a well-prepared local labor force.

At present, CNMI falls short in terms of the availability of local workforce with the required technical skills and expertise.

Aside from its being a potential alternate industry for the Northern Marianas, analysts say telecommunications would also have minimal impact in the islands’ fragile environment and eco-system, thus, protecting the local tourism sector.

However, economic researchers say telecommunications industry would depend heavily upon favorable tariff rates. “The competitive structure under which the telecom industry is organized would have to be carefully considered in any decision to pursue this type of development.” (LA)