GUAM Gov. Carl T.C. Gutierrez has withdrawn his earlier objection to the purchase of Verizon’s franchise in the CNMI by a consortium that includes Tan Holdings Corp. and Citadel Holdings Corp.
This “change of heart” came 10 days after Gutierrez’s June 17 filing that petitions the Federal Communications Commission to deny the sale of Verizon to the consortium.
“I have determined that it is not in the public interest to oppose this transfer of control. Therefore, as the governor of Guam, I hereby withdraw the petition to deny filed on June 17,” said Gutierrez in a two-page filing with the FCC on June 27.
He said the concerns discussed regarding rate integration and the implementation of the commission’s rate integration order for the Pacific territories will be raised in an appropriate FCC forum.
Earlier, Gutierrez said the transfer of Verizon’s control will prove detrimental to public interest and will also impact consumers and businesses on Guam that are currently benefiting from the reduced telecommunications service offerings available under Verizon’s nationwide integrated plans.
Anthony Mosley, Verizon acting general manager, said he believes that Gutierrez has recognized that this transaction is “positive” for the region.
“In the current economic environment, it is great when solid companies like Citadel/Tan Holdings want to invest on Guam and the CNMI. This investment will be a boon for the region if other investors believe that these are great places to do business,” Mosley told Variety yesterday.
He added, “The aforementioned is a message that we as business people need to get from our elected leaders—Guam and the CNMI are places where investing is easy and straightforward and are also great places to do business.”
The U.S. Department of Justice and the Federal Bureau of Investigation also filed on June 17 a four-page petition urging the FCC to defer action on the licenses and applications of the consortium, citing national security, law enforcement and public safety concerns.
CNMI Gov. Juan N. Babauta and key House members earlier submitted a petition opposed to the purchase.
J. Michael Fitzgerald, vice chairman of the Commonwealth Telecommunications Commission, encouraged local and federal entities to submit their comments regarding the Verizon purchase deal, and to voice out their concerns during the scheduled public hearings on Saipan, Tinian and Rota.
The Commonwealth Telecommunications Act authorizes CTC to approve or disapprove applications for approval of sale, assignment or transfer of certificate and/or encumbrance of assets/stock.
Mosley said there are not many jurisdictions in the U.S. that offer great proximity to the economic powerhouses of the future—the Asia Pacific region— with the added protection of being under the U.S. flag.
“It’s a very simple equation: Great destinations plus a good straightforward business climate equals unlimited opportunity,” said Mosley.
The FCC has given a July 1 deadline for Verizon to file its comments.
Mosley said Verizon and the consortium will file their response soon.
