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Govt. GTT preparing statement on telecoms liberalization — Minister Hughes
Seven years ago, in April 2012, the Donald Ramotar administration approved plans to sell its lucrative stakes in the Guyana Telephone and Telegraph Company (GTT).
Minister Cathy Hughes
The 20 percent shares were sold in a US$30M deal to a Hong Kong registered company.
There is a US5M still owing with the Coalition Government contemplating approaching a court in the United Kingdom to collect it.
The wheels for the so-called liberalisation were set in motion, then, for the Government of the day to start opening up the telecoms sector to allow new players to compete in the lucrative mobile and data market.
However, over those seven years, key legislations to open the industry lingered with lawmakers before being passed over two years ago.
Over the past year or so, negotiations have been dragging on between the Government and GTT.
GTT has, on paper, the monopoly for landlines and international calls.
Before the US-owned company gives up that monopoly, it wants some concessions, including bandwidth and reportedly tax breaks.
The negotiations were supposed to have been completed at the end of last year.
It also involved taxes said to be owing to the Guyana Revenue Authority.
From indications, the move to allow new players into what is one of the most lucrative sectors, is nearer to completion.
Yesterday, according to Minister of Public Telecommunications, Cathy Hughes, the Government and GTT are working to prepare a joint statement which will serve to map the way forward.
However, when asked about the timeline, the minister would only say “soon”.
Government and GTT are set to release a joint statement soon on the outcome of liberalization talks for the telecoms sector, Minister Cathy Hughes has said.
Digicel, which is GTT’s competitor in the mobile market, has been piling on the pressure for the sector to be open.
Digicel wants to land its own submarine data cable.
The two companies have long been at it in a high stakes game involving billions of dollars in business, in a market that is growing.
Digicel last year launched a legal action against the telecoms regulator in neighbouring Suriname after a cross-border data link with Digicel to Guyana was blocked.
That microwave link was used to feed data capacity to its customers in Guyana.
The shutdown caused significant data outages for Digicel’s customers in Guyana.
GTT had long complained that Digicel should be forced to buy its data capacity from its rival instead of feeding it over the border, presumably for less cost.
GTT had previously alleged that Digicel deprived Guyana of US$30 million in lost charges by bypassing its network. It claims the link is illegal. Digicel has denied those claims.
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