Latest update January 8th, 2025 4:30 AM
Jun 05, 2018 News
After several years of delays and promises, the opening of the telecoms sector may finally be in sight, with a senior government official tagging the end of 2018 for liberalization.
Admitting that there is frustration and complaints, Minister of Public Telecommunications, Catherine Hughes, made it clear that the process, though slow, is moving along.
With several new communities without telephone lines and a number of foreign and local communities wanting to land submarine cables and enter the landline and mobile markets, there has been growing anger over the quality and reach of services.
The biggest complaints have been about the sloth in repairs and quality of DSL services.
For more than two years now, the negotiation process which was preceded by the passage of legislation has been dragging on. The deadline was set at July last year, but this time went by.
Speaking to reporters yesterday, Hughes, at the commissioning of the roundabout at the Kitty seawall, said that there are many issues that have nothing to do with her ministry.
The liberalization process is not as easy as turning on a switch, she said.
It was pointed out that GTT has had a contract since 1991 with the Government of Guyana – over two decades ago. With this, the negotiations is encountering several issues that are to be addressed going back to that year.
Hughes said that she is continuing to push and is making a public commitment that she is doing so.
While in Berbice over the weekend, there were numerous complaints to the minister about no landlines being there for over 20 years. This is not an issue that cropped up in 2015, the minister insisted. Though the progress is happening, it is slow and there is a need to move faster.
Recently, one complaint from the East Bank of Demerara came from a resident who said the family’s phone lines had been down for three weeks resulting in no internet and service.
The person is heading for an overseas surgery. That one incident has served to highlight how important liberalization is.
The minister urged local businesses to grab the opportunities to provide the services once liberalization happens.
With just GTT and Digicel, consumers must be able to choose and not just have one service, Minister Hughes said.
Recently, persons familiar with the negotiations disclosed that GTT and Government have been able to move past tax-related matters over the past few months.
GTT has reportedly been asking for concessions and other tax benefits. There were issues also about outstanding taxes, which was in dispute.
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.
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.
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 since it came to the telecoms industry.
Government was mindful of the implications that would result from giving special treatment to GTT.
Hughes had 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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