AFTER its application for rates increases was denied by the Public Utilities Commission (PUC), the Guyana Telephone and Telegraph Company (GT&T) has filed an appeal, stating that the PUC’s reasons for rejection is “a list of grievances that are without merit.”Chief Executive Officer (CEO) of GT&T, Radha Krishna Sharma, in a statement, outlined the company’s disappointment by the national regulatory body’s (PUC) rejection of their (GT&T) effort to modify rates which will ultimately reflect changes in the telecommunications sector given that the last comprehensive rate review was over a decade ago.
He stated that the PUC’s order is not based on a logical adherence to the law, a reasonable consideration of the voluminous record and is neither consistent with past PUC decisions and rulings.
Sharma said the PUC’s list of reasons for rejecting the application for an increase in rates is a mere list of complaints that is worthless or “without merit”.
He then stated that the PUC order is an “outright rejection” of the company’s effort to adjust rates – including lowering long distance rates and introducing new and enhanced services for customers.
“It is an unfortunate outcome for consumers, who would have received enhanced services and seen their long distance rates cut. It is also a lost opportunity to remove a roadblock in the path to liberalisation by bringing rates in line with costs, an effort we strongly support,” said Sharma.
The regulatory body has, however, outlined its reasons for rejection in its order which was released in late March. The order pointed to numerous failures on the part of the telephone company to make good on corporate commitments. One major failure outlined by the PUC in its order is GT&T’s lack of income findings to support its claims.
“All the revenues and expenses are merged, so we do not get a true picture of what its costs, say, for the regulated sector to function. We do not have an idea what machinery and plant, and what percentage of them is used for the non-regulated sectors. GT&T has the overall figures, and must know what their expenses are,” the PUC order stated.
Meanwhile, Sharma in his statement, accused the PUC of “wrongly assessing” GT&T’s long history of investments. To support his statement, Sharma noted that the company has fulfilled its obligations and has invested USD$250 million since their last rate change along with more than US$391 million since the beginning of their contract.
In relation to filing for an appeal, Sharma stated that GT&T believes it is essential to “keep pushing” since Guyana is one of the very few countries along with Cuba in the western hemisphere that does not own a 3G wireless service.
He said the company will continue to work for changes that will allow the adjustment of rates that will ideally reflect today’s market realities and provide more services to consumers.
When it comes to modernising the telecommunication sector, Sharma noted that the PUC order is “emblematic of the frustrating distance between the Government’s words and actions.”
Contrary to this statement, Sharma then said even with this denial, GT&T will stand ready to work with the Government to develop a clear and consistent plan based on proven industry practice, fairness to all regardless of connection or influence, and the rule of law for moving Guyana forward on telecommunications.
