Atlantic TeleNetwork (ATN), GT&T’s parent company, is seeking to reopen negotiations on a new telecommunications deal with the government from where they left off in Trinidad.
This follows the US courts’ dismissal of ATN’s bid to block a US$18M loan for government’s ambitious information and communications technology project.
President Jagdeo, confirmed yesterday that the firm was seeking to reopen the negotiations and said he had advised Prime Minister Sam Hinds to reconvene the government’s negotiating team on the issue and to have exploratory discussions some time next week.
He indicated that these exploratory talks would determine whether the two sides moved ahead from where they had left off or whether changes would be adopted to the earlier positions taken.
The government and ATN negotiating teams had reached agreements on some crucial issues to liberalise the telecommunications sector which were then formatted into a draft memorandum of understanding for approval by the principals.
However, reports indicated that Jagdeo threw out the draft MOU because of the concessions contained and when ATN got wind of this, it moved to thwart the government’s information and communications technology project, which hinges upon data liberalisation and would have seen a competing telecommunications network established.
The MOU recognises ATN’s monopoly rights; it allows for rates to be increased substantially; provides for more concessions to the firm and for the possibility of the government’s 20% shares in the company to be given to it as compensation for giving up its monopoly rights among other issues.
The President yesterday said he would not comment on the MOU. He also would not say if the offer by Cable and Wireless to acquire ATN’s interest in the GT&T would strengthen the government’s hand in the negotiating process.
ATN had noted that investors were not flocking to get into the telecommunications sector in Guyana, suggesting that the deal it struck with the government was not as favourable as critics were making out.
However, Cable and Wireless has made a financial offer to ATN for its 80% share in GT&T but this is subject to the outstanding issues between the government and ATN being resolved. GT&T is ATN’s most profitable investment.
The government had already indicated to Cable and Wireless that it had no objections to it acquiring GT&T.