GT&T operations more open than a black box
CHIEF Executive Officer (CEO) of the Guyana Telephone & Telegraph Company Limited (GT&T), Mr. Yog Mahadeo has challenged Digicel Guyana’s claim that it has invested millions of dollars in this country and its profits are, usually, too small. At a media brunch the utility hosted in its Brickdam, Georgetown canteen last Friday, he also lamented a number of things happening presently in the telecommunications sector.
“In the first instance, they (Digicel) never explained what it means when they say their profits are too small. Too small could mean a lot. In the second instance, the amount of investments is unclear, because they have, sometimes, claimed $60M invested over five years and, sometimes, more. Where exactly has that money gone is also unclear,” Mahadeo declared.
He said one thing is clear, however, is the fact that Digicel profits do not remain in Guyana through reinvestment or taxes.
“There is only one company in this country that is taxed at 45 percent and that is GT&T. When pressed on these matters, Digicel will only say it is private information,” Mahadeo said.
He continued: “Just because they are a private company doesn’t mean they can’t be more honest with the people of Guyana. Our statistical count shows that Digicel is making in excess of 100 percent of our comparable mobile growth earnings.”
On the other hand, Mahadeo said his company believes in openness and transparency and has been like that with regards to its investments in Guyana; the overall revenues generated by its larger shareholder, Atlantic Tele Network (ATN); its ability to continue to invest in Guyana and the proposed telecommunications law for implementation.
“And we are willing to provide even more information about our financial situation, because our operations are more an open book than a black box,” he stated.
Mahadeo said Government and others have a clear insight on his company’s financial performance, as it is required to report a great deal of information.
“Each year, we file our statutory requirements with the Public Utilities Commission (PUC), the Registrar and the Government.

DOMINANT ROLE
“Our figures are laid out in front of the Government. We have nothing to hide. This year, we will disclose, as soon as our board approves, our accounts, that our net earnings have declined some 40 percent while our subscriber base on the comparative mobile front shows Digicel as being in the dominant role.
“In a similar manner, we have been forthcoming about our technical and network developments, discussing our fibre deployment schedule and technologies, our technological choices and our plans for a wireless broadband network, the spectrum needed for it and the technical aspects of that plan,” he added.
Mahadeo said GT&T is also looking to Government for transparency, regarding the recent announcement in the press about the Government of Guyana deployed fibre and their LTE network.
“I must tell you, they look remarkably similar to our deployment plans. I believe it is fair to assume that both current and potential investors are wondering whether the Government is about to become a competitor. In fact, I can say openly that we presented our plans to Government for 3G and LT deployment over a year ago. It is coincidental, then, that Government is launching its own LT network and another competitor is building its 3G network while we were locked and cast to a corner and told to wait,” he complained.
Mahadeo said: “The justification of us competing with a network that seems to be built upon technical plans that we have put to the table, we cannot justify. There are operators, presently, who do not pay a cent in spectrum fees yet we pay a minimum of $180M per year in spectrum fees. How can we compete with one who has no expense versus us starting at $180M in expense?
“We are also very concerned. The Guyana Power and Light (GPL) sits on our board or sits, at least, representing Government at our AGM and GPL has announced plans for fibre deployment across the country. We have had no details about such plans. Suffice to say we do have fibre across the country and our fibre plans and fibre bill would have catered for the next 20 to 25 years of demand across the country.
“We certainly believe that more openness and transparency from all parties will benefit the people and Government of Guyana and help on the path to liberalisation.

TAXPAYERS MONEY
“While Mr. Ramotar, and I’m not speaking about the President, can speak about his LTE project and his plans for the country, it is my money and the taxpayers money that they are using to build this network without oversight or regulation. How can we compete with a system that is built using my money, built presumably using various plans including ours, to compete with us?
“This has been our position with the Government from the inception. They have assured us that their project was being done for E-governance yet Mr. Ramotar’s latest statements gave us the impressions that it has gone beyond E-governance but more for Government retail business. We are learning from the street that their definition of E-governance is much wider than one can presume.
“My competitor operates with considerable advantages. They have 24 countries they operate in. I have one. We cannot match Digicel’s dominance yet we are proud that we are surely Guyana’s number one.
“For 20 years, we have invested an average of US$20M per year. We are also among the largest employer and the largest taxpayer in the country. We hope to continue this level of investment and taxation but with the losses we are seeing ahead, competing with Government and the likes of Government, we certainly cannot do so.
Mahadeo said while GT&T’s goal is to work with Government and continue to expand and modernise the country’s ICT sector, this requires, at the same time, a fair return for the investment.
GT&T must not be expected to expand when others are not required to undergo the same oversight, pay the same spectrum fees and they are allowed to operate without regulation, he lamented.

IN DIALOGUE
Mahadeo said GT&T has engaged in dialogue with Government and GPL and has also raised its concerns at the level of the PUC. “We did raise our concerns at our last AGM and we have, over the past six months, written our concerns to the director of telecoms.
“We have always been open with Government in telling them of our concerns. The last discussion we had with Government on legislation would have been during the time the Government was sending legislation to Parliament last year and on all of those occasions we would have given written submissions to the Government both identifying areas in the legislation that we are concerned about, or addressing other areas of concern,” he pointed out.
“I have no plans to downscale. I may have plans to right size. Given the uncertainty that exists in the telecom sector, we do not know. We cannot, at this stage, cast a three to five years plan in terms of right sizing the company.
“What we can clearly say is that if the downward trend is to continue, then right sizing would have to take place sooner rather than later. You are looking at two years to three years rather than five years.
Mahadeo said he “an eternal optimist” and, as such, believe that any right size for GT&T will be growing. “I remain optimistic that we will right size in an expansive way,” he posited.
Mahadeo said GT&T is very proud of what it has achieved over the past year. “In the last year, you have seen progress that has not always been easy but offers tremendous benefits to Guyana.
“In every facet of business, our prices are lower than those of our competitors. Our local calling rates have been reduced while that of my competitor has increased four times over the past two years. My international rates are lower than many other countries,” he asserted.