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‘RFP was issued for long distance service’
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Posted on Aug 29 2005
The Babauta administration said a normal bidding process was observed in the awarding of a two-year contract to IT&E for government long distance service.
Press secretary Callaghan said yesterday that the Department of Finance put out a Request for Proposal for the project last month in view of Verizon’s two-year contract expiration tomorrow.
Both companies, IT&E and Verizon, submitted proposals, he said.
“IT&E is about 50 percent less than Verizon. The procurement office, in its wisdom, picked IT&E,” said Callaghan.
Based on documents, IT&E will be charging the government for long distance at a flat rate of $0.06 per minute to continental United States, Hawaii, Alaska, and Guam; $0.08 to South Korea, China, Taiwan, Australia, Canada, and Singapore; $0.11 to Hong Kong, $0.20 to the Philippines; $0.23 to Thailand; $0.35 to FSM and Marshall Islands; and $0.46 to Fiji.
Callaghan said the change in service provider has nothing to do with Pacific Telecom Inc. taking over Verizon.
“But I think there is a lesson for PTI in this and that is, by lowering your rates, you can increase your volume,” said Callaghan.
In a notice to all CNMI government agencies on Aug. 24, the Department of Finance said that IT&E will replace Verizon effective Sept. 1 this year as the government’s long distance service provider.
“The services which will be provided are long distance support for authorized telephones and calling cards for approved users,” the memorandum said.
It said that calling cards will be distributed to existing approved users through the government’s administrative mail system.
The department said that calling cards will bear only the agency’s name rather than the name of a particular employee.
