Accord OKs DoCoMo deal

The U.S. Department of Justice, the Federal Bureau of Investigation, and the U.S. Department of Homeland Security have signed an agreement with Guam Cellular and Paging Inc. and DoCoMo Guam Holdings Inc. to address national security, law enforcement, and public safety issues that were earlier raised in connection with the DoCoMo deal.

Following the agreement, the DOJ, FBI, and DHS have informed the Washington D.C.-based Federal Communications Commission that they have no objection to FCC granting NTT DoCoMo’s application to purchase Guam Cellular and Paging Inc. and Guam Wireless Telephone Co. LLC, provided that FCC conditions its consent on DoCoMo’s compliance with the commitments set forth in their agreement.

The Justice Department in June 2006 had asked FCC to defer action on Japan’s NTT DoCoMo’s application until such time that the DOJ, FBI, and DHS have looked at some security issues.

With the agreement, the DOJ, FBI and DHS—through deputy assistant attorney general Sigal P. Mandelker, deputy general counsel Elaine N. Lammert, and assistant secretary for policy Stewart A. Baker—filed a petition with the FCC, expressing their non-objection to the deal.

“After discussions with representatives of DoCoMo, the [DOJ, FBI, and DHS] have concluded that the commitments set forth in the agreement will help ensure that the agencies and other entities with responsibility for enforcing the law, protecting national security, and preserving public safety can proceed in a legal, secure, and confidential manner to satisfy these responsibilities,” the petition said.

The Japanese company proposes to acquire Guam Cellular and Paging Inc. and Guam Wireless Telephone Co. LLC for a total of $71.8 million and then merge the companies.

Guam Cellular operates Guamcell Communications and Saipancell Communications. Guam Wireless Telephone Co. LLC operates HafaTel.

With over 50 million subscribers, NTT DoCoMo reportedly has more than half of Japan’s market share.

Gov. Benigno R. Fitial wrote on June 22, 2006 to FCC chair Kevin J. Martin, expressing his strong support to NTT DoCoMO’s proposed acquisition.

“We strongly welcome NTT DoCoMo’s investment in our market and expect that our citizens will benefit from their financial strength, technological expertise, and innovation,” Fitial said.

If the acquisition is approved, the governor pointed out, NTT DoCoMo will be able to offer CNMI residents better access to advanced services and technologies in the wireless industry.

Resident Representative to the U.S. Pedro A. Tenorio told FCC that any notion that the security of the U.S. or Guam will be jeopardized by the presence of Japan’s NTT DoCoMo Inc. in the Marianas “is far-fetched.”

Tenorio described NTT DoCoMo, which is partially owned by the Japan government, as “a respectable Japanese company.” Tenorio pointed out that Japan is a long-time economic partner of the U.S. and has substantial investments throughout the country.

Tenorio also cited that several years ago, FCC approved the license of Pacific Telecommunication Inc., a wholly owned Philippine corporation, after its purchase of Micronesian Telecommunications Corp. from Verizon NMI.

TeleGuam Holdings LLC had asked FCC to deny the proposed assignment and transfer of control, saying that foreign ownership of the leading wireless provider in Guam raises significant competitive issues and, because of the major military presence on Guam, presents a risk to national security.

Richard J. Metzger, TeleGuam’s vice president for regulatory, said the proposed ownership by NTT DoCoMo presents additional concerns because it is the dominant wireless carrier in Japan and it is ultimately controlled by the Japan government.

TeleGuam, through its wholly-owned subsidiaries, GTA Telecom and GTA Services, currently offers local landline and long distance services on Guam. Through its wholly owned subsidiary, Pulse Mobile LLC, TeleGuam is also offering wireless services in Guam.