Atlantic Tele-Network Petitions FCC to Deny Transfer of Bankrupt ICC Properties to RTFC

On July 7 Massachusetts-based Atlantic Tele-Network, Inc. weighed in on transferring the bankrupt Innovative Communication Corp (ICC) properties in the U.S. Virgin Islands to its largest creditor, the Rural Telephone Finance Cooperative.  Atlantic has operated subsidiaries in the USVI for many years, and it asked the FCC to deny the transfer unless RTFC divests the cable television operations.

According to Atlantic, ICC has a monopoly over all LEC and pay-television operations in the USVI, and ICC makes sure they don't compete against each other.  Atlantic argues the only way to develop broadband infrastructure in the USVI is through inter-modal cable-telco operation.  Atlantic relies on ICC's own testimony before the PSC in the USVI to show that the current network offers no true broadband services and has fallen into such disrepair that it is held together with "scotch tape and baling wire."  Atlantic believes the only solution is to have the telco and cable TV operations compete against each other, and that can't happen unless they are independently owned.

Adding spice to the story, Atlantic recounts how ICC was forced into bankruptcy when tens of millions of dollars were siphoned from ICC by its former Chairman, Mr. Jeffrey Prosser, for personal uses, including houses, paintings, art, jewelry, wine, airplanes, cars, sports tickets, and antiques.  Atlantic questions whether the millions of dollars in annual FCC subsidies that ICC receives were caught in the "upstreaming" of funds to Prosser.  Atlantic notes that neither RTFC nor the PSC detected Prosser's massive extraction of operating funds from the ICC operations.

-- Bob Titsch