VERIZON has asked the Legislature to support its initiative to have a broadband access available to the people for a reasonable rate.
In a July 1 letter, acting Verizon general manager Tony Mosley requested assistance from House Speaker Heinz S. Hofschneider, R-Saipan, to help the company facilitate the CNMI’s access to the information highway by “entertaining favorable tax consideration.”
“You indicated that the Legislature would entertain a request from Verizon for a direct tax break in exchange for offering low cost broadband services, or ADSL. After much research and discussion, we’ve reached a conclusion on the required subsidy that will allow us to offer ADSL services in the $49 range,” Mosley told Hofschneider.
Mosley suggested that the Legislature amend P.L. 12-32 so that telecommunications companies would be able to push through with its broadband operations affordable to consumers.
Verizon proposes that the governor be authorized to issue qualifying certificates abating taxes or establishing a higher tax rebate level on all sources of income earned within the CNMI up to 100 percent for a period of up to 25 years.
Mosley informed Hofschneider that due to the expected demand for subsidized ADSL service, the company estimates that it will require approximately $3 million in equipment and off-island bandwidth to support the initiative.
Mosley said that on a comparative basis, bandwidth is expensive in the Pacific. He said Verizon’s cost to deliver broadband services is $3.42 per kilobit, which is 10 times more expensive than the rate in California.
