Major step in telecoms liberalization as Govt., GTT sign Memorandum of Understanding

Mar 07, 2019 News

Major headway appears to have been made with plans to open the telecoms sector by allowing competition in the mobile and internet field.
With the so-called liberalization process dragging on for seven years, yesterday the Coalition Government and the Guyana Telephone and Telegraph Company (GTT) announced that they have inked an agreement. While the Memorandum of Understanding is non-binding, it will spell significant advancement in the ongoing negotiations.

Public Telecommunications Minister, Cathy Hughes

GTT, a US-controlled company that has been here for 28 years, taking over the crumbling state-owned Guyana Telecommunication Corporation in the early 1990s, has been insisting on a number of concessions, including more spectrum, and reportedly tax breaks, to give up its monopoly on landline and international calls.
Several companies have been applying to operate internet TV, mobile services, and the landing of submarine cables to bring data. However, the ongoing talks have stalled the processing of the applications.
Yesterday, a joint statement was issued by Government and GTT.
“The Cooperative Republic of Guyana (GoG) and Guyana Telephone and Telegraph Company (GTT) are pleased to announce the signing of a Memorandum of Understanding regarding the GoG’s planned liberalization of the telecommunications market.”
The statement noted that the agreement, while “non-binding”, represents a major step toward fully liberalizing Guyana’s telecommunications market.

GTT’s CEO, Justin Nedd

“The parties have further agreed to continue discussions on all outstanding issues with the objective of reaching a binding agreement.”
Minister of Public Telecommunications, Catherine Hughes stated: “After many years of delays, this Government has brought the country one step closer to achieving a fully open telecommunications market. While more work needs to be done, the Government is committed to continuing discussions and completing the process of liberalization for the citizens of Guyana.”
“I am very pleased we have reached this milestone”, said Justin Nedd, GTT’s Chief Executive Officer.

Finally: Govt. is nearer to a final deal with GTT to end the company’s monopoly.

“GTT fully supports an open and transparent telecommunications market in Guyana and the opportunities it will provide for Guyana’s citizens and our customers. We look forward to further discussions with the Government to reach an agreement on the issues that remain outstanding.”
GTT has landed a submarine cable and is busy rolling out its services from this fibre link which it says has 1,000 times the possibilities of the old, slower copper wire and satellite-linked connections.
However, consecutive governments have been under pressure to allow new players for the expansion of services to especially outlying areas, which have been struggling for landlines and faster, affordable internet connectivity.
Since coming into Government in 2015, the issue was high on the agenda of the Coalition to end the 28-year landline and international calls monopoly held by GTT.
It entailed talks between the Government and the company about taxes, concessions and other issues.
Currently, only Irish-owned Digicel is here, and it is limited to mobile services.
Government had committed to opening up the sector mid-last year, but it was delayed to the end of last year and then onto this year.

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