ICT - Telecoms Liberalisation…Now

ICT – Telecoms Liberalisation…Now

Jun 28, 2015 News

By Lance Hinds
In 1990, the Guyana Telephone and Telegraph Company (GT&T) was granted an exclusive licence to

Lance Hinds

provide: 1) public, radio, and pay station telephone, national and international voice and international data transmission, 2) sale of advertising in any directories of telephone numbers, and 3) switched or non-switched private line service supported by facilities constructed over public right of way.
This licence was for twenty years in the first instance with an option for automatic renewal for another twenty years.
In 2007, when the monopoly once again attracted a lot of attention and comment, GT&T, in an article called “GT&T Operating Licence: Putting Monopoly Service Provision into Perspective”, observed the following:
“When the Government of Guyana in 1990 moved to privatize the then state-owned monopoly Guyana Telecommunications Corporation (GTC), given the abysmal state of the telecommunications infrastructure in Guyana, as well as the small population size and low per-capita income levels, it was rational, indeed necessary, to agree to grant the new company, Guyana Telephone & Telegraph (GT&T), a monopoly licence.”
Given the limited interest shown in the privatization at the time, it is clear that investors would have deemed the investment opportunity unattractive had the Government sought to split company along geographic and/or service lines, or otherwise acted to limit reasonable investment returns by implementing an open-entry policy on a “flash-cut” basis.”
GT&T’s operating licence did not provide exclusivity for the entire range of telecommunication services. One exception was cellular networks, hence the arrival of telecommunication giant Digicel and others, albeit temporarily, into the local market.
Another exception was the establishment of private data networks, although this would require permission from the relevant authority. A prime example of this is the Guyana Sugar Corporation, which uses a private data network with their own equipment, to make their information systems available to all their estates. Individuals were also allowed to import Satellite dishes once it was only for individual use and not for the sale and distribution of communication and data-related services.
Over the years GT&T has defended its monopoly by reminding us constantly about the state of the communications structure it inherited in 1990, the growth of fixed access lines, the over US$200 million it invested to improve same, the amount of cellular subscribers currently and the digitalization of the national network with full international and broadband connectivity.
GT&T, of course, never addresses the revenue received based on its magnificent investment. Some of us remember in trade journals where GT&T was described as the ‘flagship’ company of its owners, Atlantic Tele-Network (ATN). Let us however, move on.
No one is arguing about the contribution that GT&T has made to the national telecommunication infrastructure. But this at the end of the day was a business venture that was expected to generate and still continues to generate revenue.
It is however an undisputable fact that over the last 10-15 years, while our sister Caricom countries were liberalising their telecommunication sectors and beginning to benefit from competitive pricing, we in Guyana have been stuck in an uncompetitive, stifling environment.
This monopoly has hindered Information Technology from making the kinds of contributions to Guyana’s economy that has been made in other economies. This environment has resulted in Guyana having one the most expensive rates in the Caribbean with the slowest access speeds.
Again there is no difficulty here with GT&T. It is responsible primarily to its Board of Directors. If it cannot, or will not provide the highest levels of services within the current dispensation, that ultimately is its prerogative. The liberalisation process must involve all stakeholders but is the primary responsibility of Government.
To this end, Guyana certainly appeared to recognize the importance of ICT and need for telecommunications liberalisation. In 2002, the then president joined fellow Caricom Heads in launching the Caricom Agenda and Platform for Action. In the executive summary it states clearly that the heads:
“Recognised the potential of Information & Communication Technology (ICT) for enhancing and integrating our societies in areas such as education, health, poverty reduction, delivery of public information and governance – all objectives well articulated in the Caricom Charter of Civil Society”
The agenda goes on to stress the need to establish a modern national regulatory framework that plays a key role to support and sustain a national effort for effective connectivity, and that it should be based on principles like equitable, universal, affordable access to education; a competitive ICT industry; information protection mechanisms, and last but certainly not least, the coordination of legislation governing the information and communication sectors.
Since this initiative, the Government of Guyana has signed on to every other initiative launched by the CARICOM region to promulgate the effective use of ICT in our respective societies.
It was therefore quite inexplicable when in 2011 the Government of Guyana, with little explanation, deferred the passage of new telecommunications legislation until after the 2011 regional and general elections. Some of us wondered whether the needs of ATN/GT&T took precedence over the needs of the public.
After a few years of political gamesmanship, the legislation went back to the Select Committee in the 10th Parliament, but was once again derailed by the prorogation of parliament in 2014 and the eventual national and regional elections in 2015.
We now have a new dispensation under which we have been promised that liberalisation will be one of the first legislative items on the agenda. It is important the public understands that this is not going to be a walk in the park. There are some complicated negotiations that must begin with GT&T soonest. This company is being asked to give up its monopoly fifteen years before its expiration. Issues of compensation and related financial matters will be difficult hurdles that must be overcome.
It is unfortunate that this country’s potential is held hostage by this state of affairs and stifled by an anachronistic telecommunications environment that simply has no place in the development of an information society.
The economic possibility of the ICT sector in an enabling environment, in terms of new businesses and innovation, are endless. This is especially critical when one takes into account the challenges being faced by the other productive sectors.
As the opening statement of the Terms of Reference of the Caricom Regional ICT Steering Committee states most appropriately:
“The Caricom Region is faced with a growing digital divide and the need to improve efficiency and marketability in all sectors if it is to compete globally. The strategic application and use of Information and Communication Technologies (ICT) is one of the vehicles to economic and social stability.”
We all have a responsibility therefore to ensure that this legislation moves forward.

Lance Hinds is the current President of the Georgetown Chamber of Commerce. He is also the Chief Executive Officer of the BrainStreet Group, an ICT consulting and information services company.