GT&T reviewing options after Govt’s block of cellular expansion programme
Kaieteur News
June 3, 2004
The Guyana Telephone & Telegraph Company Ltd (GT&T) is “considering its options” following the government’s directive to the company to put its programmes to implement a Global System for Mobile Communication (GSM) system on hold.
Some US$10M has already been invested by GT&T into the project.
General Manager of GT&T, Sonia Jagan, in a letter to Prime Minister Sam Hinds, yesterday, said she found it “confusing” and “contradictory” as to the real message that is being sent to the company.
“Let me say that I am truly astonished by such an instruction which clearly violates the permission received from your government in 2003 re the allocation of frequencies for the operation and implementation of the new GSM system,” Jagan stated in her letter.
In announcing its decision, Government stated that there was a protracted delay by GT&T in opening up the cellular mobile service market to competition.
Citing the inefficient use of the GSM 900 MHz band because it use is limited to one operator, the government reviewed its policy and procedure for the allocation of frequencies granted for the cellular service market to maximize its use.
“It is indeed a dark day in the history of Guyana when we see the government issuing instructions not based on any legal basis but on seemingly personal preferences,” Jagan stated.
She said government is fully aware that GT&T has built and was moving to shortly implement the GSM system that was in keeping with the commitment to install it within a 24-month timeframe.
Failing to do this, penalties would have included the withdrawal of frequencies allocated.
Jagan said she found it alarming that the news releases issued on government’s behalf seem to indicate that the administration’s action is based on the fact that GT&T has not moved to interconnect Cel Star Guyana.
“As you are well aware, this issue of interconnection was not denied by GT&T but was put on hold pending the resolution of the ownership of Cel Star, as GT&T was placed on notice of proceedings in court contesting the ownership and right to represent Cel Star Guyana,” Jagan informed the Prime Minister.
She added that government had indicated that while the administration was not pleased with the matter that caused further delay of competition in the sector, the issue was before the courts and must be resolved between the relevant parties.
Jagan declared that for government to now seemingly indicate a position of preference of one company over another does not bode well for competition in Guyana and reveals a bias against GT&T.
The GT&T Head charged that government, through the National Frequency and Management Unit, has acted in defiance of the judicial system and the rule of law as both the dispute as to the ownership and representation of Cel Star Guyana and the issue of continued interconnection are before local tribunals.
The former is before the High Court and the latter before the Public Utilities Commission and now the Court of Appeal.
Jagan pointed out that GT&T has not been given the 45% tax holiday that was provided to Cel Star Guyana nor has GT&T benefited from any form of assistance by way of loan or capital.
“GT&T has and continues to pay over to the government and the people of Guyana its full 45% corporate tax, making it the largest corporate contributor of income taxes to this nation,” Jagan wrote. “The country and the people of Guyana will get nothing from Cel Star.”
She stated that it may be touted that Cel Star Guyana will cause prices to lower and thus benefit Guyana and pointed out, this could indeed be so given that their costs are immediately lowered by 45%.
Jagan stated that GT&T has no fear in competing and has not asked favours in competition but is asking for there to be a level playing field.
She informed Hinds that this is clearly not intended given government’s new position.