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Phone companies grapple for mobile internet control

Oct 09, 2018 News

It is a business that involves tens of millions of United States dollars. The sale of data to customers especially on mobile phones is big business. For them, the lower the costs for phone operators, the bigger the profits.
In Guyana, the two operators are Guyana Telephone and Telegraph Company (GTT) and Digicel.
However, GTT, controlled by US investors, is accusing the Irish-owned Digicel of illegally sourcing its data which is critical for internet connectivity from elsewhere.
Under the current regulations, only GTT can bring in internet connections. For Digicel to offer data services on its mobiles it has to purchase from GTT.
However, GTT was convinced that its competitor was getting its data from elsewhere.
In the past week, it was reported that Suriname authorities have shut down an illegal bypass link with Digicel. The shutdown has left thousands of customers of Digicel with poor services for days.
The company last week was silent on the reported shutdown of the illegal link but apologized “for prolonged data interruption”. A few customers reported that they received 500MB in free data.
Yesterday, GTT’s Chief Executive Officer, Justin Nedd, would not immediately confirm if the company has had a hand in the shutdown.
He insisted that the complaints of Digicel illegally using other sources for its connections have been raised and filed on a number of occasions, including with Government.
Nedd noted that in 2010, almost a decade ago, GTT landed what is still the only sub-sea, fibre optic internet cable in Guyana. The cable afforded the company the opportunity to supply the entire country with connectivity and internet.
In fact, in March, the cable was able to supply neighbouring Suriname and French Guiana when the two countries suffered “unusual outages”.
With regards to the reported shutting down of the illegal connection, Nedd said that GTT has not commenced or threatened proceedings.
Rather, GTT recognizes that the Suriname authorities are executing their mandates.
Under the regulations, GTT has the monopoly on landlines, overseas calls and data. With new laws that allow for competitors in those monopolized areas, Government is currently looking to wrap up negotiations with GTT, by year-end before allowing new players in.
GTT wants a level playing field, including with taxes.
Nedd insisted that the sector has been liberalized for several years because of the realities on the ground.
The CEO pointed out that the telephone company continues to work with the Government to finalize the liberalization or as he calls it, the regularization, of the telecoms industry.
Such regularization is critical to investors’ confidence.
Nedd said that the arranging for data with Digicel is “really a work in progress”.
He insisted that GTT has the capacity as evidenced from the provision of services to Suriname and French Guiana earlier this year.
Nedd said that GTT would not be privy to what actions the telecoms regulators have taken in Suriname.
He said that he read the news in the media and encouraged that questions be asked of Digicel.
He said that the issue of illegal bypass has been raised in the past with Government.
Nedd said that as a large company, GTT expected scrutiny. There is training for staffers and GTT is evolving.

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