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Digicel complies with regulator’s call to halt rates reduction
Digicel has complied with calls from the regulator, Public Utilities Commission (PUC), to cancel its announced rates reduction.
Yesterday, days after publicizing up to 80 per cent reduction in the rates, the mobile company announced the suspension of international rates reduction.
In text messages to its subscribers, Digicel made no mention of orders by PUC to withdraw the advertisements of the rates reduction.
“Digicel regrets to inform you that low international calling rates have been suspended due to a court order obtained by GT&T. The fight goes on!”
Digicel has complied with PUC’s orders
The issue is revving up to be a nasty one between the former state-owned Guyana Telephone and Telegraph Company (GT&T) and Digicel.
Digicel has been battling Government and GT&T for the removal of the 20-plus year-old monopoly signed in the 90s with the latter. It is currently mandated to route all international calls through GT&T.
Last year, legislations to liberalise the telecoms sector were tabled in Parliaments, shortly before the November 28 General Elections, but withdrawn at the last moment after the PPP/C Government said that it has received last minute submissions which made it imperative to not go ahead.
Last Friday, High Court judge, Justice Rishi Persaud, ruled that the monopoly held by GT&T to provide telecommunications service or to regulate voice and data transmission over the internet is unlawful and void.
This week, Digicel signaled its intentions to immediately reduce its international rates with some countries seeing as much as 80 per cent slashing.
GT&T, however, managed to appeal the judge’s decision and also to secure a court order to stop the rates reduction of Digicel until the outcome of the appeal case.
On Thursday, too, the PUC, which has the authority to regulate rates of the country’s utility companies, wrote Digicel to “forthwith withdraw the notices which your company caused to be published” advertising drastically reduced rates for international calls.
GT&T’s injunction had prevented Digicel from “advertising, commencing, running or operating an international call service other than through interconnection with GT&T or without first obtaining a licence to do as required by the provisions of the Telecommunications Act of 1990.”
The interim injunction further restrains Digicel from fixing, advertising, charging or collecting other rates in respect of such services without first obtaining the approval of the PUC, after the Commission has had a public hearing as required by the PUC Act.
Digicel has been fighting for years now to remove the monopoly.
“Digicel has been pushing for many years to have this outdated monopoly brought to end. This decision of the High Court is wonderful news for the Guyanese consumer. We intend giving the people of Guyana something that they have never seen before in terms of value and service on international calls,” said Digicel’s Chief Executive Officer, Gregory Dean earlier this week.
But the move by Digicel was stopped in its tracks by PUC.
“The Commission wishes to advert your attention to the fact that the PUC by order had fixed rates, including those for overseas destinations, which rates are still in effect. Your company is also aware that rates for telecommunication service must be approved by the Commission and there are statutory procedures prescribed for the application of same,” the PUC noted.
PUC had written the company seeking an explanation.
Digicel has vowed to fight the matter in court.
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