GTT demands spectrum as part of liberalization deal

May 14, 2018 News

Last Friday marked three years since the coalition Government was elected on campaign promises that included the liberalization of the telecommunications sector.
But talks continue to drag on between the Government and the Guyana Telephone and Telegraph Company (GTT), the US-owned entity that has a monopoly on landlines and international calls.
According to persons familiar with the ongoing negotiations, the company and Government have been able to move past tax-related matters in recent months.
Kaieteur News was informed that GTT wants to secure a spectrum deal before the talks conclude. Government is awaiting an official proposal from the telephone company for consideration.
Minister of Public Telecommunications, Catherine Hughes said on Friday that the ‘talks are progressing’ and will be concluded before 2020, the year when the next general election is constitutionally due.
Guyana is desperately trying to open up the market to allow new competitors into the industry. In July 2016, Guyana managed to pass key legislation, the Telecommunications (Amendment) Bill 15/2016.
Negotiations with GTT started in December 2016. In January, last, the Telecommunications Minister indicated that Government will not be rushed.

GTT building

With anger at the seeming sloth of investments, like the unrolling of landlines in un-served areas by GTT, the delays in concluding the negotiations have been causing unease.
GTT and its parent company, US-owned Atlantic Tele-Network (ATN), have had a monopoly situation in the more than 20 years when it came to the telecoms industry.
With talks ongoing to break that monopoly, Hughes said, it is understandable that stakeholders will want to ensure that in coming to the table, the best deal is made- that is going to be good for Guyana.
With tax breaks and other issues with GRA, the telephone company had been holding out for a number of concessions.
Government was mindful of the implications that would result from giving special treatment to GTT. In fact, Hughes had indicated that any concession granted to GTT will be offered to all operators in the sector.
“There will be no special privileges”, Minister Hughes stressed.
She had warned that the “focus” is not getting the negotiation done in the shortest span of time, but making sure that there is an “end game” that suits everyone.
Hughes said that the Government is “extremely careful” to ensure that there is a deal with which everyone is happy.
GTT’s major competitor is Digicel which has also expressed an interest in landing a fibre optic cable.
Digicel has been aggressive, too, in competing with GTT on the mobile market. But under the current arrangement, it is supposed to route foreign calls through GTT.

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