In January 1991, Atlantic Tele-Network Inc, (ATN), a US Virgin Island based company, acquired 80% of GT&T with the Government of Guyana holding 20% in the purchase of what was previously the state-owned Guyana Telecommunications Corporation (GTC). The total assets of GTC were valued at the time by the Merchant Bankers SG Warburg, at US$20 million. ATN acquired its 80% shareholding for US$16.5 million and absorbed US$15.8 million in debts owed by GTC.

Under its Agreement with the Government of Guyana, ATN undertook a massive rehabilitation and modernisation programme which has so far involved an investment in excess of US$80 million.

At the time of acquisition, the state-owned telecoms company was in a state of near collapse, overburdened with antiquated and dysfunctional equipment and with a waiting list of over 100,000 demands for telephone services. An international call to and from Guyana often took over forty-eight hours to complete.

Today, Guyana enjoys one of the most modern telecoms systems in the Caribbean with an average annual growth in Teledensity of 26.5% (1990-1995), the highest in Latin America and the Caribbean.

In February 1991, one month after ATN Inc bought 80% of GT&T, Guyana devalued its currency by 140%, but the Public Utilities Commission (PUC), whose Chairman and members are appointed by the Government of Guyana, refused to adjust GT&T's rates to compensate for this substantial devaluation. The Agreement between the Government of Guyana and ATN requires the company to be compensated for any devaluation of the Guyana currency by an adjustment of rates.

GT&T is one of the major US private investors in the country. The company has been forced, in spite of repeated appeals to the Government of Guyana, to operate at a substantial loss from revenues earned from the provision of telecom services in Guyana because of uneconomic rates imposed by the PUC.

The people of Guyana benefit from the lowest rates charged anywhere in the world for a telephone service. The monthly rental for a telephone in Guyana is US$0.25 cents or US$3.00 per year. The cost per minute of call to the USA is between US$0.35 cents and US$0.50 cents. By comparison the average cost of a call per minute from the USA to Guyana is US$1.10. The company is only able to subsidize this service and realise a reasonable rate of return on its investment because it supplies international circuits to audiotext providers worldwide.

GT&T has appealed to the Government of Guyana since 1993, to take action within its powers under the Public Utilities Act of Guyana, to have the PUC allow the company to charge rates to permit a minimum rate of return of 15% on its investment from revenues realised in Guyana.

Without audiotext revenues, GT&T would have recorded total losses of approximately $28 million from January 1993 to august 1996.

GT&T has been able to complete 95% of its Expansion and Modernisation Programme under its Agreement and maintains a highly efficient telecommunication service in Guyana largely from the revenues obtained from supplying circuits to audiotext providers and loans advanced by ATN.

GT&T has never been instructed by the Government of Guyana to discontinue the supply of circuits to audiotext providers as claimed by the Embassy of Guyana nor has it ever been requested to do so by the President of Guyana. In fact, the PUC by an official order has instructed the company that it cannot cease the supply of circuits to audiotext providers.

GT&T has indicated in writing on a number of occasions to the Government of Guyana its concern on having to depend on audiotext revenues for its financial survival. The company has formally advised the President of Guyana of its readiness to terminate the audiotext business once the Guyana PUC allows the company to charge rates sufficient to realise a minimum of 15% return on its investment from services provided in Guyana.