Stabroek News
May 26, 2001

The government yesterday granted Cel Star Guyana Inc a five-year tax holiday to get its US$10 million cellular service in Guyana going.

Cel Star Guyana Inc, a joint venture between Cel Star Caribbean Ltd and Demerara Distillers Ltd, had suspended work on the investment following the post-election disturbances but the suspension has been lifted.

Chief Executive Officer of the new Guyana Investment Agency, Geoffrey Da Silva, yesterday approved the company's application for a five-year tax holiday.

Cel Star senior executive, Wesley Kirton, said the firm was pleased with the reception it has received from the government, which was sending the right signals to attract investment. He indicated that this approval would expedite the investment plans.

Despite the delay caused by the suspension, Kirton said he expected that the start up could still be possible by November, when the firm expected to connect some 10,000 customers to its network.

Kirton said that the investor, Cel Star USA, was here recently and felt that the investment climate was conducive to going ahead with plans. To date the company has spent US$1 million on acquiring its cellular licence and incorporating the local company.

The firm is currently talking to vendors of cellular phones such as Ericsson about an arrangement for the local market. Kirton said that work which still had to be done to further the investment including additional surveys, fine-tuning designs and concluding arrangements with cellular phone vendors.

He noted that maintenance of a safe environment was crucial for the investment to proceed as the company had to bring in engineers and expensive equipment to get its operation going.

The company planned that by November, 10,000 subscribers in the city, lower east coast and east bank Demerara and at Parika would be connected.

Questioned whether the rate structure to be introduced by the firm would allow it to capture a market share in Guyana, given the introduction of the calling party pays system and lower cellular rates by the Guyana Telephone and Telegraph Company Ltd (GT&T), Kirton answered that Guyana remained a market which was good and had potential for significant growth.

Cel Star's announcement of the lifting of its suspension of work on the investment was made yesterday at Le Meridien Pegasus Hotel in the presence of Prime Minister Sam Hinds and DDL senior executive, Komal Samaroo.

Hinds welcomed the decision, saying it would send the message that Guyana was once again open for business.

Cel Star will be investing in a 900 megahertz cellular system.

Cellular service is currently being provided by GT&T and the Caribbean Telecommunications Limited.