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Digicel/GT&T clash over international licence

May 09, 2009 News

Digicel, Guyana yesterday instituted legal proceedings challenging the exclusive licence of the incumbent provider in Guyana, Guyana Telephone and Telegraph (GT&T) Company, to carry international traffic to and from Guyana.
According to a press statement from the company yesterday, “Currently, due to a 20-year agreement that expires next year, GT&T has a complete monopoly on the carriage of international traffic.”
It was pointed out that as part of the exclusive agreement, GT&T has the option to renew this agreement for a further 20 years and prevent the introduction of competition in the international market.
“Digicel believes that this exclusive agreement is unlawful and unconstitutional and is seriously hampering the full liberalisation of the telecommunications market in Guyana…. Liberalisation aids competition by allowing customers choice, better quality and more affordable services.”
The company said that it has already proven that it is ready and able to provide a first class service that includes handling international traffic pointing to the fact that in 2007, Digicel was awarded a temporary international license from the Government of Guyana when the Americas II cable was damaged. Customers greatly benefited from this service through the increased quality of international calls.
Gregory Dean, CEO of Digicel Guyana, said, “This action is all about choice, quality and value for the people of Guyana. Since launching operations in Guyana, Digicel has brought an unbeatable mobile service to the people of Guyana and we believe that Guyanese have a right to the same quality and affordability of service with their international calls.”
GT&T however responded saying that while it is yet to see the legal papers that Digicel indicates that it filed “we have read, with some amazement, Digicel’s Public Relations release on the subject.”
According to GT&T it is not usual in the Guyanese system for approaches to the Courts to be accompanied by contentious Public Relations releases.
“This action has nothing to do with customer choice, quality of service and price.  The fact is that Digicel is aware that negotiations between the Government of Guyana and ATN/GT&T to modify GT&T’s licence are well advanced.”
The company pointed out that as Dr. Roger Luncheon had illustrated in his statement on the issue of full liberalization in the Guyana telecommunications market “we are in the end game.”
GT&T stated that indeed, the government has indicated that draft legislation dealing with the liberalisation of the sector is imminent and will be shared with all interested stakeholders.
“Further, it is common knowledge that GT&T has made it clear that in the context of successful negotiations it does not wish to extend its exclusive licence beyond its first term which ends in 2010.”
It added also that what it has consistently requested is that agreements be honoured and that all operators operate within the confines of the law.
“All of our traffic statistics point to a well organized international traffic bypass operation aimed at undermining our viability and depriving the treasury of its rightful revenues. This activity is costing Government hundreds of millions of dollars…Digicel’s assertion that their action is aimed at lowering prices and improving service quality is laughable…GT&T has tried repeatedly to lower international call rates only to be prevented from doing so by the PUC on Digicel’s complaints.”
The telephone giant pointed out that Digicel is fully aware that the temporary international licence that allowed it to provide international service for a while could not be justified since the undersea cable cuts that disrupt service periodically has nothing to do with GT&T’s network and that in any event GT&T always has adequate redundant voice capacity in place to carry traffic.
“GT&T has continued to invest heavily in the modernization of telecommunications in Guyana.  The public is aware, for example, that GT&T is currently engaged in the build-out of an undersea international fibre optic cable at a cost of US$30 million.”
“We are convinced that their actions have nothing to do with the well-being of the Guyanese consumer…As Digicel will discover, we are neither unwilling to nor incapable of defending our legal rights.”

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