A SUBSTANTIAL increase in GT&T’s cellular subscribers has contributed to a 43 per cent rise in earnings by its parent company, ATN, in the second quarter of 2003.
A recent report on ATN’s (Atlantic Tele-Network) website said the U.S. Virgin Islands-based company earned US$3.1M for the quarter ended June 30, 2003. This compares with earnings of US $2.2M for the quarter ended June 30, 2002.
It said GT&T’s (Guyana Telephone and Telegraph Company) increased cellular subscribers from last year led to a 26 per cent growth in local exchange revenues.
Local cellular subscribers rose from 57,048 on June 30, 2002 to 104,852 on June 30, 2003, an increase of 83%.
"We are pleased by the continued growth of our Guyana subsidiary, GT&T, particularly in its cellular operations,” the report quoted Cornelius B. Prior, Jr., Chairman of the Board and Chief Executive Officer of ATN.
“Press reports in Guyana about the construction activity of one of the other cellular licence holders - with whom GT&T has signed an interconnection agreement - indicate that we may face more significant competition in the cellular business later this year,” he added.
The United States-based company, Cel*Star, has launched a US$20M investment here under the inter-connection agreement with GT&T.
GT&T's wireline subscribers (access lines) also increased from 82,043 to 88,138 over the period under review.
There was also a nine per cent (US$1.5M) increase in international long distance revenue in the first six months of the year compared with last year, due to about 27 per cent more traffic.
“The increased traffic was due to the substantial increase in GT&T's subscribers, as well as lower prices for U.S. traffic…,” the report said.
“(These are) continuing to stimulate demand in response to the FCC mandated reduction in international settlement rates for traffic between Guyana and the United States effective January 1, 2002,”it explained.
The report said lower prices for U.S. traffic also appear to have stimulated refiling through the U.S. of traffic for Guyana from foreign carriers. These generally pay more to send such traffic here directly.
“These two factors have contributed to a reduction in average revenue per minute for inbound long distance,” the report noted.
ATN’s second quarter 2003 earnings were 10 per cent higher than the first quarter’s $2.8M.
GT&T is 80 per cent owned by ATN and is its principal subsidiary.