Offer of lower int’l rates unfair – Official

Dec 02, 2008 News

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Digicel Guyana yesterday responded to comments made by the Guyana Telephone and Telegraph Company to the Kaieteur News with respect to Digicel’s complaint to the Public Utilities Commission (PUC) about the unfair actions taken by GT&T with respect to international rates.

According to Digicel, the recent promotion by GT&T offered a lower international rate to GT&T landline customers only, hence it considers the selective offering of lower rates for international calls to be unfair and anti-competitive.

According to the company, it favoured lower rates for international services, and has argued that, if the company had an international licence, the rates of international services would be even lower. Call quality would be improved with the competition that would follow.

According to a senior official attached to Digicel, the basis of the complaint to the PUC is that Digicel was not given the chance of a hearing on the proposed rate change.

The official noted that notwithstanding the legal position, Digicel encouraged the PUC to make the rate reduction available to all customers in Guyana, which would include Digicel and GT&T cellular customers as well.

It was also noted that, in addition to Digicel customers, the GT&T promotion also discriminates against telephone customers in areas with no landline services. Some of these persons have been waiting for years through no fault of their own, Digicel added.

The official said that, given that the number of cellular phone users in the country is in the region of four to five times the number of landline users, “the unfairness of this offer is even clearer.”

The official added that Director of Ratemaking, Gene Evelyn at GT&T, states that “the reason for the promotion was to reduce customers using alternative methods of making international calls.”

The official stated that even a cursory glance at the facts would render “this argument nonsensical. Given that currently GT&T offers off peak calls to the USA at $104.40, it was pointed out that GT&T reduced the rate during the promotion to $81.20.

“How can this be competitive with the rates offered by the so-called alternative methods, which are significantly below this?…It is obvious that offering such a rate will have no impact on the alternative methods, but purely impact Digicel’s international traffic during the key Christmas trading period.”

According to the official, the promotion has now been on for two months and Evelyn should now be able to state what are the initial findings.

“Based on the reduction in international calls Digicel has seen during the promotion, the conclusion is that the real objective of the promotion was achieved.”

The official noted that, in 2007, when responding to a Digicel query about GT&T running the 50 per cent off international calls at weekends, which commenced in May 2007, Evelyn said, “So, these rates do apply to U-Mobile Cellular customers, since we have no desire to discriminate.”

He questioned if GT&T did not want to discriminate in 2007, “What has changed…Why is it ok for GT&T to discriminate now?”

The official noted that Digicel’s stance on all promotions, subject to the rules of the Regulator, is that there will be no objections as long as the promotion offers a benefit to the customer and that the other network can match or better the offer.

“This weekend being a case in point when GT&T offered calls to customers in Bartica at $1, Digicel raised no objections to this offer despite the obvious breach of the PUC’s regulations…This was due to the benefit derived by the people in Bartica and the ability of Digicel to respond if it felt the promotion threatened its long term performance.

“In the present case, Digicel has no means to respond to an international promotion, despite the obvious benefits to customers, hence the complaint.”

According to the official, Digicel once again asks for GT&T, in the season of goodwill, to bring some relief to the long suffering telephone users of Guyana by lowering the international rates to all users.

“If operating the international monopoly in a way that is fair to all interested parties is proving too burdensome for GT&T, Digicel stands willing to help, within an hour’s notice, to alleviate the pressure by providing cheaper and better quality calls in and out of Guyana.”

The official also used the opportunity to query another issue, saying, “While Mr. Evelyn is in the mood to address the public, can he please confirm when GT&T will be ready to offer SMS between the two networks?

This is a service that the majority of cell phone users require, and Digicel is willing to do so within one hour of receipt of a signed contract.”

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