By Ravin Singh
LIBERALISATION of the telecommunications sector is imminent with the National Assembly set to debate the long-awaited legislation today.The Telecommunications (Amendment) Bill 2016 is expected to be read for the second time in the National Assembly and pave the way for a rigorous debate.
The bill could be passed after the debate, once it is not re-sent to a Special Select Committee for further fine-tuning.
The bill has journeyed through years of intense deliberations and consultations, particularly with the two main mobile service providers in the country – the Guyana Telephone and Telegraph Company (GTT) and Digicel Guyana.
The bill seeks to create a competitive regime in the telecommunications sector, by providing for an open, liberalised and competitive sector that will be attractive to new market entrants and investors, while preserving the activities of the current participants.
As it is, the bill is expected to result in greater choice, better quality of service and lower prices to consumers.
It also specifically addresses the expansion of telecommunication networks and services into unserved and under-served areas, through the institution of a new universal access/universal service programmes, in an effort to further national, regional, social and economic development.
With the expectation of the bill being passed in the House today, Minister of Public Telecommunications Cathy Hughes believes that stakeholders who contributed to its drafting are satisfied with it in its current form.
“I think they [stakeholders] are satisfied with the bill as it is,” the minister said.
She went on to explain why she was of this view, detailing the history of the bill, which has its origins under the PPP administration.
The Telecommunications Bill, which was read for the first time on May 24 of this year, was first introduced in 2011 and revised in 2013. It was with a Special Select Committee in the 10th Parliament and was near conclusion when Parliament was prorogued in 2014 by then president Donald Ramotar.
After the APNU+AFC assumed executive office last year, the bill underwent a new set of consultations with GT&T, Digicel and other stakeholders including the Private Sector Commission (PSC), the Public Utilities Commission (PUC), the University of Guyana (UG) and several non-governmental organisations.
It was subsequently submitted to Cabinet. Two overseas consultants, Janice Brendman and Geeta Raghubir were also appointed by the Government to assist in completing the bill.
Confident that the bill is one which was crafted to benefit the people of Guyana, the minister boasted of the extensive consultations which were held.
She explained that written submissions and oral presentations were made to the Special Select Committee and that committee took into consideration all the recommendations which were made.
“The committee considered all of the comments, submissions and presentations which were made. So I don’t think anyone could say that we didn’t consult enough,” Minister Hughes said.
She further went on to point out that the committee took note of those recommendations and suggestions which they incorporated into the bill with the aim of developing the telecommunications sector.
However, she revealed that Digicel – one of the two mobile service providers – had some concerns regarding interpretation of the term “Net Neutrality” as is listed in the bill. Minister Hughes noted though that the concern was considered by the select committee.
Loosely defined, the term “Net Neutrality” refers to the principle that Internet service providers (such as Digicel and GT&T) should enable access to all content and applications regardless of the source, and without favouring or blocking particular products or websites.
RESERVATION
A high-level source also confirmed that Digicel has reservations regarding “Net Neutrality” and that both “Digicel and GTT do not want “Net Neutrality.”
Since 2011, Digicel has decried GT&T’s 20-plus year’s monopolistic control of the sector, which the company said has not been in the interest of the Guyanese people.
More recently, in May of this year, Chief Executive Officer (CEO) of Digicel, Kevin Kelly, said GTT had held the nation back for over 20 years.
In one of its published handbooks on Net Neutrality, ‘What is the best approach for the Caribbean?’ which is available online, Digicel argues that developing any strategy in respect of “Net Neutrality” can only be done when policy-makers and regulators have a clear policy framework and policy goals to test whether any proposed approach is actually fit for the purpose and deliver the maximum overall benefits to the various stakeholders based on the actual conditions in their local market.
Some of the policy questions that Digicel believes need to be clarified before a “Net Neutrality” approach can be developed and decided on include: do we want to maximise broadband connectivity?; do we want to maximise Internet usage?; the extent to which inclusiveness is a goal; do we want to encourage network investment?; do we believe that the commercial benefits of the converged Internet should be concentrated or distributed?; and the extent to which different services and service providers (both traditional and converged) need or should be protected.
The handbook goes on to state that “Net Neutrality” discussions in the U.S., the EU and elsewhere have been high-profile and there might appear to be an urgency for regulators and policy makers in other regions to do something or risk being left behind.
However, the Irish-based company argues that this isn’t the case. Digicel reasons that the fact that there is such debate going on, even in economies that have been considering this for some time is an indication that the matter is far from straightforward and that no one has started to gain an advantage.
MUCH TO GAIN
“In fact, the Caribbean region has much to gain by adopting a more considered approach, as there is time to see where the various debates lead and to analyse the specific policy goals and challenges Caribbean markets face,” the handbook said.
The handbook also pointed out that any intervention will have long-term effects. The extra time taken now to craft the best possible approach will be repaid many times over compared to a sooner but less appropriate (and perhaps even damaging) decision.
As such, Digicel contended that for developing countries, any disincentives to operator investment would have serious consequences. The company also referenced a recent article in Forbes magazine, which noted that “If Net Neutrality is bad policy in a developed economy, it is nothing less than outrageous in a developing one, which has yet incipient networks and a lot of rural areas to be covered. Net Neutrality rules obliterate the incentives to innovate and expand networks.”
However, when contacted for a comment on whether the company has reservations with the term net neutrality being included in the bill, Digicel’s CEO Kevin Kelly did not respond to questions put to him through the company’s Public Relations Officer.
On the other hand, GTT sought to reaffirm its commitment to serving the people of Guyana, when quizzed on its ability to provide high-quality services to compete with potential service providers.
Asked whether GTT has reservations regarding aspects of the bill, the company responded, “GTT is reviewing the bill and awaiting an opportunity to engage in contractual negotiations. GTT is very supportive of liberalisation and is excited to bring new and exciting services to Guyana.”
GTT also said that it will continue to position itself to be a winner in the market as they look forward to seeing a level playing field and ensuring that the rule of law is respected.
When asked specifically if the company is pleased with the bill in its current form, the service provider responded, “We are eager to engage GoG [Government of Guyana] on liberalisation.”
Just recently, customers were complaining that Digicel had blocked GTT’s Mobile Money Guyana service from running on their network, and at one time, blocked the Mobile Application from running.
Subsequently, GTT reportedly censored a website by redirecting traffic (users) who were trying to access http://digicelgroup.com to GTT’s website.
According to one Information Technology (IT) expert, this move sets a dangerous precedent, since it has the potential to muzzle anyone who disagrees with the company.
“Hopefully, the Government doesn’t condone this behaviour as that would tell me much about them,” he said.
Meanwhile, Minister Hughes said that she was unaware of additional concerns outside the net neutrality issue, if there were indeed any, given the fact that she was not part of the Special Select Committee.
The minister said though that she is confident that the bill is one which is designed to benefit all of Guyana.
“I am confident that the bill will be good for the telecommunications sector in Guyana. Digicel and GTT will have issues with aspects of the bill, but we think that there were enough consultations and everything that was said and proposed were taken into consideration at the level of the select committee. We have a bill that [is] going to benefit all of Guyana, not just one company or one stakeholder,” she said.