Govt seems biased in disconnecting cellular system
-says 'astonished' GT&T
Stabroek News
June 3, 2004
The Guyana Telephone and Telegraph (GT&T) says the government appears to be showing bias in putting on hold the company's new cellular system and warns that that such decisions deter rather than encourage competition in the sector.
The government had issued a press statement late Tuesday saying that on May 28 the National Frequency Manage-ment Unit (NFMU) advised GT&T to put on hold all of its plans and programmes to implement a Global System for Mobile Communication (GSM) locally.
According to the government, protracted delays in opening up the market for competition are resulting in insufficient use of the GSM 900 MHz band by limiting it to a single operator.
But GT&T General Manager, Sonita Jagan in a letter to Prime Minister Samuel Hinds yesterday said the instructions were not founded on any legal basis but seemingly personal preferences. Jagan told Hinds that the government's actions did not bode well for competition.
According to Jagan, such an instruction from the government clearly violates earlier permission from it in 2003 via the allocation of frequencies to operate and install the new GSM system.
Jagan expressed her astonishment at the move since the government was aware that the telephone company had built and was moving to implement the GSM system in keeping with government requests to install it within a 24-month timeframe or risk facing serious penalties including withdrawal of the allotted frequency.
"In fact, at minimum the company has already invested over US$10M and has further financial commitments based on the anticipated build-out."
Jagan says GT&T is completely confused by the government's contradictory signals especially since the government is fully aware and has pronounced on the cause of the delay of competition in the sector.
The government action is believed to have been prompted by GT&T's refusal to move forward with an interconnection agreement with start-up cellular company Cel*Star as well as the stalled talks with the government aimed at ending the monopoly.
Jagan noted that the dispute as to ownership and representation of Cel*Star Guyana and the issue of continued interconnection are before the High Court and the Public Utilities Commission respectively. Therefore the NFMU move against GT&T can be interpreted as defiance of the judicial system and the rule of law.
Jagan further referred to the 45% multi-year tax holiday provided to Cel*Star by the government which GT&T did not benefit from or from any form of assistance by way of loan or capital. She also highlighted that GT&T has paid its full share of 45% corporate tax making it the largest corporate contributor to income taxes in the nation.
She insisted that GT&T has no fear of competition but simply wants a level playing field.