Reacting to the pressure

Editorial
Guyana Chronicle
March 12, 2000


AT LAST, the government has publicly acknowledged that all's not well in the telecommunications sector.

According to Head of the Presidential Secretariat, Dr Roger Luncheon, heightened interest and growing pressure have led Cabinet to seek a comprehensive answer to the concerns.

He didn't get into the details of what's involved, telling reporters Friday that the government recognises "major concerns" related to "unmet consumer expectations" and other issues, leading it to look for a "comprehensive resolution."

The general impression though is that the administration is beginning to take on board serious public misgivings about the pace of progress in the sector, particularly with the telephone and related services.

And this is long overdue.

President Bharrat Jagdeo signalled at a business conference in Miami last December that the government wanted to open up the sector to competition and was discussing options with the phone company here which has a monopoly under the agreement it signed in 1991.

It is understood that the government has been legally advised that the Guyana Telephone and Telegraph company does not in fact have a monopoly under the agreement and there is room for other firms to move in.

Many people here feel opening up the sector to competition will lead to better services and lower costs, factors that customers everywhere welcome.

The administration, according to Dr Luncheon, acknowledges what critics have long been saying.

"It has been pointed out, and I believe this is an unassailable position, that the density of telephone service, telephone lines, in Guyana is unacceptably low and it is indeed inconsistent with domestic expectations, whether geographic or per capita", he said.

But it also accepts that "current developments, both internally and externally, threaten the financial soundness of GT&T (and its parent company) ATN (Atlantic Tele-Network)".

Of paramount importance to people and firms here and companies wanting to do business here is whether Guyana can keep pace and hold its own in the rapidly changing Information Technology (IT) world.

Other countries in the region have moved ahead, luring investors, and Guyana is still trying to determine how to proceed.

It's been three months since IT feelers were floated in Miami and it appears that not much follow-up has taken place.

According to Dr Luncheon, an existing Cabinet sub-committee has been recently energised by the domestic realities, a reaching out by all partners, and increased information about the industry internationally, building the momentum for a resolution to the problems.

Guyana does not have the luxury of time because the competition is stiff and potential investors will not sit around and wait while those concerned here take more time to ponder.

The waiting has been too long already and a resolution has to be found quickly now that all kinds of pressures are building.

Dr Luncheon has acknowledged the realities and it is imperative that the administration acts in the best interests of the nation without much more delay.