Despite the May 6 deadline imposed by the Commonwealth Telecommunications Commission, Verizon failed to pay the full amount of franchise fee being demanded of it by the regulatory board.<\/p>\n
But Verizon general manager Tony Mosley said yesterday that the company would come up with a decision on Monday whether or not it would pay the full amount of $107,526.03. This represents 2.5 percent of the company\u2019s declared gross revenue of over $4.3 million for the first quarter of 2005.<\/p>\n
\u201cWe will decide on Monday whether or not we\u2019re going to pay the full required amount,\u201d Mosley said.<\/p>\n
So far, Verizon has given the commission a check amounting to $21,505, which reflects 0.5 percent of the declared gross revenue for the first quarter of the year.<\/p>\n
Public Law 14-53, which was enacted on Jan. 6, 2005, removed the 0.5-percent cap on the fee, which had been effective since 2001. For about two decades, the historic rate had always been 2.5 percent before the 0.5-percent cap took effect.<\/p>\n
The CTC wants to implement the 2.5-percent provision allowed by the law effective Jan. 6. Its board affirmed Wednesday the invoice amount sent to Verizon by CTC executive director Adam Turner.<\/p>\n
Verizon wants a lower rate for the franchise fee. In an April 13 letter to CTC, Mosley claimed the commission earlier advised Verizon of increasing the fee to 2.5 percent \u201cwith retroactive effect to Jan. 17, 2005.\u201d<\/p>\n
Mosley said the CTC has taken no formal action to implement the increase, asking the commission to notify Verizon both of the increase and authorization for it to pass on the cost of the increase to consumers.<\/p>\n
Mosley insisted yesterday that Verizon could pass on the cost of the increased franchise fee rate to its customers, citing the settlement agreement it reached with Caldwell and Gov. Juan N. Babauta in connection with Pacific Telecom Inc.\u2019s proposed purchase of Verizon from Micronesian Telecommunications Corp.<\/p>\n
But Mosley conceded that the Legislature was \u201csilent\u201d on the matter when it enacted Public Law 14-53, saying that this is \u201can election year.\u201d<\/p>\n
\u201cThere was never any refusal on the company\u2019s part to pay,\u201d Mosley stressed.<\/p>\n
He added that Verizon is the only telecommunications company that the CTC charges this fee.<\/p>\n
\u201cThe CTC should also bill other companies,\u201d he said. \u201cThere is only one company that CTC bills and that\u2019s us.\u201d<\/p>\n
CNMI consumer counsel Brian Caldwell strongly opposed the passing on of the increased fee to consumers, saying that any telecommunications company seeking a modification to existing rates must go through a hearing process before the commission.<\/p>\n
Caldwell explained that the Legislature never intended to allow Verizon to pass on the cost of the fee increase to customers when it explicitly deleted a proposed \u201cpass on\u201d provision.<\/p>\n
The CTC\u2019s board unanimously affirmed Wednesday the commission\u2019s invoice on Verizon and ordered the company to pay the full amount by the close of business hours yesterday. It said that failure to pay would constitute a violation of the Commonwealth Telecommunications Act and the CTC regulations.<\/p>\n","protected":false},"excerpt":{"rendered":"
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