CONSUMER CONCERNS…Consumers welcome the new PUC chairman, look forward to quick liberalization

Jul 02, 2017 News

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PAT DIAL

On Wednesday 21st June Ms. Della Britton, a well-known attorney-at-law and serving Commissioner of the Public Utilities Commission (PUC) was sworn in as Chairman of the PUC by President Granger.
The Consumer Community, which from the inception of the PUC was fully involved in all its hearings, extends a hearty welcome to Madame Chairman Britton, and as a stakeholder, again pledge our support to the Chairman and the Commission.
Ms. Britton is an experienced Lawyer and had been exposed to other disciplines and skills when she took her Masters’ Degree from Columbia University. She therefore brings a rounded intellectual personality and tested ability to the Chairmanship.
During the time Chairman Britton served as Commissioner, the Commission had to adjudicate on several difficult and complicated issues especially in respect of the Telecommunications Utility. In these deliberations Chairman Britton saw firsthand the knowledge, capability and professionalism of her fellow Commissioners. She also saw how helpful and able the staff of the Commission was.
In her acceptance speech, she underlined this when she remarked, “We do have a dynamic group of professionals and the Commissioners are all capable of fulfilling their mandate as all have years of experience and are professionals … Our duties are strict under the Legislation and because they are strict we have mandatory obligations to the Consumers, the Utilities and to the Minister”.
With this excellent PUC infrastructure she inherits, she will immediately start working and as she put it, “I hit the ground running tomorrow”.
The liberalization of the Telecoms Sector is the first challenge Chairman Britton will encounter and she is well-prepared to meet it. “Plans are afoot as of now,” she said, “to have all things in place before liberalization would have come into force.” In getting ready for liberalization, the PUC will have to engage new personnel to assist in the process. Such personnel would be the best available in Guyana.
Chairman Britton has promised to work closely with the Minister of Telecommunications Hon. Catherine Hughes who would be leading the liberalization process. The Liberalization legislation which came into being last August has several new requirements but the core of it concerns the ending of the ATN/GTT monopoly of the Telecoms Industry. The Liberalization is expected to be completed by the end of this month. This had been set as the deadline and the public is looking forward to this in much expectancy.
Minister Hughes however pointed out that before the liberalization process is complete, a number of issues have to be resolved, and this may go beyond the end of July, but that consumers and the public need not be alarmed since the process is moving in a straight line towards conclusion.
The main issues which are in the process of being resolved are the engaging of a suitable consultant to advise on spectrum management and pricing since in the past GTT enjoyed free or almost free spectrum. Since the National Frequency Management Unit now comes under a new agency,TT, on its side, is concerned with the pricing of spectrum and the process by which applications for new licences are received.
In addition to these, ATN/GTT has a number of other issues still to be resolved which are of the nature of dismantling the Monopoly and the payment of monies it owes to the Guyana Revenue Authority. Minister Hughes has reported that negotiations on all outstanding issues are going well.
It is not expected that the Telecoms Minister and ATN/GTT would make public the process of these negotiations but this, however, does not preclude the GCA from giving its take on information which is already in the public domain. In this regard, there are three issues of which the negotiators would be reminded:-
(1) GTT has publicly stated that the Liberalization Act was ending the Monopoly which it regarded as its private property and for which the Government of Guyana must duly compensate it. This Monopoly was given in the 1990 Contract between ATN/GTT and the Government of Guyana.
The GCA had long been advocating that the 1990 Contract was void and as such there was no Monopoly in the strict sense. There is therefore no obligation on Government to compensate ATN/GTT for loss of Monopoly. The reason why the 1990 Contract was void was that the Government gave ATN/GTT the Monopoly subject to it performing certain things. The most important of these was the obligation to institute universal landline services in Georgetown, throughout the Coastland of Guyana and in five named interior locations.
GTT has failed to do this and there is a list of thousands who require landlines and cannot get them; and also the demand in the new housing schemes. In GCA’s view, this fundamental breach of the 1990 Contract in addition to other less fundamental breaches voids the so-called Monopoly Contract.
(2) The GCA believes that ATN/GTT owes the Guyana Revenue Authority at least US$40 million in taxes which they have resisted paying over the years. The GCA surmises that they will try to negotiate away this debt by suggesting that it should be balanced against the loss of Monopoly among other things and that both sides should let bygones be bygones. The GCA holds strongly to the view that ATN/GTT should be made to honour their financial obligations to the Government. They have extracted enormous profits from Guyana beyond the wildest dreams of any local company.
(3) GTT has been complaining that they have been making poor profits on the regulated services which are of course the Monopoly segment of their business. If the so-called Monopoly service is of such poor value, then it could scarcely expect to be compensated for this.
We do look forward to the quick conclusion of negotiations and the advent of Liberalization.

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