PTI, MTC seek to extend deadline to Sept. 7

Pacific Telecom Inc.’s long-standing bid to take over Verizon’s operations from Micronesia Telecommunications Corp. may have been stalled again, but the delay that temporarily prevented the consummation of the multi-million-dollar deal by the Aug. 31 deadline may not be too long.

PTI and MTC are optimistic that they would strike a settlement agreement with the Marianas Public Lands Authority regarding Verizon’s various leases of public lands very soon. And so is the MPLA.

However, since PTI and MTC could not consummate the deal on Aug. 31—the deadline set by the Commonwealth Telecommunications Commission—the companies asked the CTC on that date for an extension of the deadline to Sept. 7.

Gov. Juan N. Babauta and CNMI consumer counsel Brian Caldwell’s position on the request for deadline extension remains unknown at press time, but Verizon general manager Tony Mosley expressed optimism that the CTC would grant the request.

Regarding the settlement negotiations with the MPLA, Mosley said tersely: “We’re moving along.”

Until yesterday, the settlement negotiations continued, temporarily stalling PTI’s bid to take over Verizon’s operations on or before Sept. 1. But the MPLA shared the same position that negotiations would eventually reach a settlement.

“It’s been a tough negotiation, but it’s moving forward,” said MPLA attorney Ray Quichocho.

Verizon has at least 11 leases with the MPLA, explained Quichocho. There are three major issues that are being addressed on the bargaining table.

One of those issues involve the renewal of Verizon’s lease for its Susupe facility, which Quichocho said was very close to being settled Tuesday night. Also being negotiated is a permit agreement for public lands easement for Verizon’s underground cable.

Of the 11 leases, Quichocho said four of them explicitly require MPLA’s consent to their assignment from the original lessee. He said the MPLA would give its consent once the other issues are resolved.

Last Monday, PTI president Jose Ricardo P.R. Delgado was determined to close the telecom deal with MTC, had it not been for the absence of MPLA’s consent. In its amended final order issued last July 11, the CTC gave PTI and MTC until Aug. 31 to seal the deal. The bid to take over Verizon’s operations has been lagging since PTI and MTC jointly applied with the CTC for approval of the transfer of all common stock between the companies.

Once PTI takes over Verizon’s operations, there will be an end to interisland long distance charges for calls within the CNMI, pursuant to the 27-point settlement agreement that the companies reached in May 2004 with the intervenors in the CTC proceeding, the governor and the CNMI consumer counsel.

The agreement provided that there would be no local rate hike for two years from the transaction’s closing and that PTI would invest a minimum of $20 million in capital expenditures during the next five years. PTI recently disclosed that there would be no change in Verizon’s management and employees, except for the board’s membership. PTI has also disclosed its interest to become a regional player in the Pacific islands, and that it would join the National Exchange Carrier Association.