THE Commonwealth Telecommunications Commission has granted Verizon a permanent authorization to operate and provide telecommunications services in the CNMI.
In a meeting Thursday night on Capitol Hill, acting CTC Chairman J. Michael Fitzgerald signed the certificate of public convenience and necessity.
Without this certification, the commission would not approve any purchase agreement or transfer of ownership involving Verizon.
Pacific Telecom—the consortium of Citadel Holdings Corp. and Tan Holdings Corp.—is applying for a transfer of Verizon’s license.
The two-page CTC certification authorizes Verizon to provide local, private line, direct dial and inter-island calling card services.
Anthony Mosley, acting general manager of Verizon, yesterday said the certification is only for “formality’s sake,” since the telecommunications company has been operating in the CNMI for more than 20 years.
Verizon will furnish the commission an initial tariff detailing current rates and services within 30 days from the signing of the certificate.
CTC, however, said the commission’s issuance of the certificate “makes no endorsement or certification regarding Verizon’s rates or services.”
The certificate also requires Verizon to pay regulatory fees on a quarterly basis to CTC pursuant to the Commonwealth Telecommunications Act.
For purposes of calculating the fee to be remitted each quarter, Verizon is required to report its gross revenues derived from the provision of telecommunications services in the CNMI for each calendar quarter.
The commission provided an interim license to Verizon on Jan. 11, pending the completion of requirements.
Fitzgerald, however, expressed disappointment that the bill seeking to bring back Verizon’s franchise fee to 2.5 percent had been returned to the House Committee on Public Utilities, Transportation and Communications.
During its May 7 session, the House cited House Bill 13-33’s deficient cost benefit analysis.
H.B. 13-33 seeks to increase Verizon’s gross annual revenue contribution to the government, from the current 0.5 percent to 2.5 percent.
Verizon’s quarterly fee using the 0.5 percent rate averages at $200,000, which is less the amount that the telecommunications firm used to pay.
