US Executive Director at the Inter-American Development Bank (IDB), Jose Fourquet, secured a postponement of consideration of a US$18M loan for Guyana on Wednesday after lobbying by the Atlantic Tele Network (ATN) seeking support of its position in talks with the government on breaking its phone monopoly here.
Washington sources on Friday confirmed that the US$18M loan for a US$22.5M project to develop the information and telecommunications sector, was set for consideration on Wednesday by the IDB’s Board but had to be postponed for a week based on a request by the US. A circular to this effect was sent around.
The circular did not say which country requested the postponement or what were the reasons for it. However, well-placed Washington sources confirmed it was the US Executive Director who sought the postponement and this information has been communicated to the Guyana government.
What the source also explained is that information within the IDB is that the US Virgin Islands-based ATN approached Fourquet and argued that it has a monopoly over voice and data transmission in Guyana but that the government is refusing to recognise this. The source said the postponement expires on Wednesday when the loan is expected to be considered by the Board of Governors. However, it is not a certainty that this would take place given the clout that the US government has in the bank.
It is not clear what the government’s response has been on this issue and efforts to contact the local IDB office for a comment were not successful.
ATN, which has an 80% stake in the Guyana Telephone & Telegraph Company Limited (GT&T), entered into negotiations with the government on the terms to break its monopoly in Guyana and the two sides were discussing a memorandum of understanding when the turn of events came. Cabinet is still to consider the draft memorandum.
According to well-informed sources, ATN is claiming in the talks that it has a monopoly on national and international voice and data transmission but local sources are arguing that this cannot be taken to include the Internet because when the licence was granted to the firm in 1991, commercial use of the Internet was not even thought of. At that time, voice and data could have only meant facsimile and similar transmissions and voice over telephone.
Stabroek News understands that the government’s negotiating team is saying that data transmission ought to be liberalised immediately but is willing to await liberalising voice transmission until GT&T secures full rate rebalancing which could take two years.
While the talks between the government and GT&T officials intensified in Trinidad recently, Stabroek News was told that ATN was lobbying support within the US government on the position of the company on the issue of voice and data transmission.
It is not clear what the one-week delay is going to achieve for ATN but local sources say it is a definite sign the company is flexing its muscles.
ATN has hired a US firm to determine for it a compensation package in its talks with the government but this package has not been unveiled to the government as yet.
The loan project now deferred was to cater for the legal framework in the telecommunication and information sector, for the improved use of information and communications technology in the public sector, enable a community outreach programme and promote information and communication technology service exports.