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PUC orders Digicel to cancel rate adjustment

Jul 27, 2012 News

…accuses company of usurping power

The Public Utilities Commission dealt a severe blow to the expanses of Digicel. By way of a letter dated July 26, 2012, the commission ordered and directed that Digicel “forthwith withdraw the notices which your company caused to be published” advertising drastically reduced rates for international calls.
The order from the Public Utilities Commission (PUC) came on the heels of an injunction granted to the Guyana Telephone and Telegraph Company (GT&T) restraining Digicel’s actions. That injunction now prevents Digicel from “advertising, commencing, running or operating an international call service other than through interconnection with GT&T or without first obtaining a licence to do as required by the provisions of the Telecommunications Act of 1990.”
The interim injunction further restrains Digicel from fixing, advertising, charging or collecting other rates in respect of such services without first obtaining the approval of the PUC, after the Commission has had a public hearing as required by the PUC Act.
Digicel’s actions followed a ruling by Justice Rishi Persaud in the High Court that found the monopoly held by GT&T to provide telecommunications service or to regulate voice and data transmission over the internet, is unlawful and void.
“Digicel has been pushing for many years to have this outdated monopoly brought to end.  This decision of the High Court is wonderful news for the Guyanese consumer.  We intend giving the people of Guyana something that they have never seen before in terms of value and service on international calls,” said Digicel’s Chief Executive Officer, Gregory Dean said.
The telephone company said it will take immediate steps to pass on the benefits of this ruling through lower international rates, high-tech mobile technology, increased investment in far-flung communities and exciting new products and services.
Those aspirations were halted by the PUC. “The Commission wishes to advert your attention to the fact the PUC by order had fixed rates, including those for overseas destinations, which rates are still in effect.
“Your company is also aware that rates for telecommunication service must be approved by the Commission and there are statutory procedures prescribed for the application of same,” the PUC noted.
In the wake of the announcement by Digicel that it was cutting the international rates the PUC wrote to the company seeking an explanation.
Until this development, Digicel had vowed to fight any challenge that GT&T would have made against Justice Rishi Persaud’s ruling.
Digicel had vowed to aggressively defend its decision to slash international call rates, despite criticisms by government and an appeal to a court decision by competitor, the Guyana Telephone and Telegraph Company (GT&T).

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