— Digicel CEO denies company using illegal link from Suriname
TELECOMMUNICATIONS giant Digicel is up in arms against the Guyana Telephone and Telegraph Company (GTT) over a promotion “Get More Pay Less”, which promises to provide all their customers “more data, minutes and text for less”.
These, they can utilise to make all calls to the USA and Canada.
In a complaint submitted to the Public Utilities Commission (PUC), Digicel contended that the promotion is “anti-competitive”.
It said GTT, which still holds a monopoly in the market for international services in Guyana, is providing Digicel with a wholesale rate, which is considerably in excess of the “highest possible retail rates its customers would pay”.
Digicel is requesting that the Commission makes an order forthwith that all present and future promotions concerning international rates, be extended by GTT to Digicel to be offered as part of their bundled minutes to their customers.
During a hearing on Tuesday chaired by PUC Chairman Prem Persaud, Digicel Chief Executive Officer (CEO) Kevin Kelly explained that if the assumption was to be made that customers only use the GTT bundle for overseas calls to Canada and USA, then their call rate will be between $26.26 and $30.40.
“This is significantly below the PUC set retail rates of $100 ($90 off peak) and US$134.50 ($94.15 off peak) for the USA and Canada respectively,” Kelly pointed out.
At present GTT gives Digicel a discount on these PUC set retail rates, which on average is 35 per cent. Therefore, Digicel’s cost per minute would be in the region of $65 and $87.42.
As such, Kelly contended that GTT’s bundles are ‘unfair’ and should be adjusted or the PUC should lower the price so that Digicel can benefit as well. These remarks of Digicel’ CEO were not welcomed by GTT’s CEO, Justin Nedd. In his presentation, Nedd outlined that GTT is a business and is therefore allowed to promote any promotion they want.
ILLEGAL LINK
But the GTT CEO did not remain on the topic of the promotion for two long. Along with GTT’s Director of Regulatory, Mark Reynolds, the CEO pointed out that Digicel is allegedly using an “illegal link”, which runs from Suriname to Guyana.
“Digicel claims that they pass their traffic through our link but they have an illegal link, which they use instead… we have solid evidence that shows that Digicel is doing this,” said GTT’s CEO.
Nedd lamented that by allegedly using the link, Digicel is breaching a contract between the two parties. The company, he said, is also losing profits because of Digicel’s alleged act.
The GTT’s CEO stated that if Digicel is going to be able to act in that manner, despite complaints to the PUC, Director of Telecommunications and other authorities, GTT will operate as a business and do what they ought to in order to increase their revenue earnings.
Kelly denied the accusations, stating the remarks are being used as a “smokescreen” to cover up GTT’s “anti-competitive” act.
This matter was, however, discarded by the PUC Chairman, who stated that the only matter that was on the agenda at that time was the complaint against the GTT’s promotion.
Persaud lambasted both parties for straying from the topic. But, after deliberating with other members of the PUC, the Chairman highlighted that all promotions from either party must be submitted to the Commission 48 hours before it is released.
However, the Chairman was unable to make a conclusive decision and adjourned the matter, but asked GTT to submit information on the number of subscribers who are a part of the promotion.
He implored Digicel to show how they have suffered because of GTT’s promotion, within five days.