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PUC’s role likely to widen with impending telecoms legislations – Justice Persaud
…but limited clout could bring back monopoly
With the possible passage of a Telecommunications Act and an Amended Public Utilities Commission (PUC) Act in the National Assembly, Chairman of the Public Utilities Commission (PUC) Justice Prem Persaud, is eyeing a challenging year ahead.
However, Justice Persaud, during an interview, yesterday, insisted that the PUC is prepared for the challenge. As a consumer-oriented body, the Commission’s functions are currently of a regulatory, investigatory and enforcement nature.
PUC Chairman, Justice Prem Persaud
It also has the power to undertake other functions as conferred on it by the existing PUC Act but according to Justice Persaud “we are waiting to see what the new legislations would be to see what clout we will have in them.”
He anticipates though that the PUC will have a more extended supervisory role once the legislations evolve, allowing for open competition in the telecommunication sector. As a result he expects that the Commission will have to embrace an even more efficient mode of operation.
The anticipated legislations are designed to govern the operations of the telephone service providers – the Guyana Telephone and Telegraph Company (landline and mobile) and Digicel Guyana (mobile).
At the moment GT&T has the monopoly on the service, a state of affairs which will be remedied with the passing of the Bills needful to reform the sector.
Although a ruling of the High Court earlier this year declared that the GT&T held monopoly is both unlawful and invalid, Justice Persaud warned that the PUC remains the only authorised body to pronounce on unfair competition.
It was with this in mind he related that the PUC was forced to have Digicel withdraw a promotion following the ruling which saw it slashing international calling rates by 80 per cent.
“As a result of the ruling Digicel decided to introduce certain rates which would have breached our order…we had to let them know that if they want to reduce their rates below a certain point they have to come to us. Despite what the Courts rule the law is still there that you are still under the PUC…” he insisted.
Currently there are fixed ceiling and flooring rates prescribed by the PUC, guiding the operations of the two entities. The companies are allowed to offer rates between $7 and $32 but the average rate currently charged by both is about $20.
“They can fix their rates for whatever purpose that they want provided they stay within that space,” Justice Persaud disclosed.
Aside from the Digicel’s slashing rate incident, the Chairman said that “there was fair competition over the past year so there was no other intervention…We are always watching them especially the promotions.”
He speculated that with the ending of the existing monopoly consumers are likely to benefit considerably from various plans and programmes which are expected to come into play.
However, if the new legislations do not allow the PUC clout to ensure fixed rates, Justice Persaud opined that a possible monopoly could again loom.
Without the power to influence rates “what can happen is that a very prosperous company can come in and reduce the rates to about $1…that company may reduce its rates to such an extent that another company cannot compete; so one can run the other out of business and raise back its rate then bring back into effect a monopoly.”
It is for this reason, he explained, that the year ahead could prove to be a challenge since diligent efforts will have to be made by the PUC to oversee with a view of ensuring that undue advantage is not taken by one company on the other.
“We have to be after them, checking their records and files and receive and deal with complaints vigilantly…”
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