— GTT wants investigation into Digicel alleged illegal trans-border link 

THE Guyana Telephone and Telegraph Company (GTT) is calling for an investigation into Digicel’s alleged “illegal, unlicensed trans-border link between Guyana and Suriname.”
Additionally, the telephone giant is demanding that Digicel make public its records detailing tax payments on the revenue generated by this perceived illegal bypass operation in the interest of transparency.
In a statement on Saturday, GTT said it is time to get down to the bottom of the situation. GTT is contending that the illegal bypass operation has been active for more than five years, costing the country approximately US$30M.
This burning issue was brought to the fore on numerous occasions over the last two years, GTT posited, noting that it is time for transparency “to ensure openness and forthright conduct and to establish confidence that all interested parties are being treated fairly and equitably.”
The Guyanese people must know the complete details of the unauthorised cross-border link, the telephone giant said.
It said instead of clearing the air on the issue, Digicel has opted to make excuses and has launched new and unfounded claims that are meant to distract the public and media.
“To finally provide complete transparency about the illegal bypass operation, we call for the Government to initiate a comprehensive audit, conducted by a respected and experienced third party. Since assuming office, the Government has pursued a number of audits to bring clarity to various aspects of our economy. Given the financial significance of an illegal bypass operation, it would certainly seem appropriate for a similar audit to take place here,” GTT said.

RELEASE FINANCIAL RECORD
Additionally, GTT wants Digicel to release its financial records to determine whether it paid taxes from the revenues generated by the alleged “illegal bypass operation.”
“Given Digicel’s acknowledgement of its bypass activity, the public deserves to know – with conclusive evidence – if the company has paid its fair share of taxes on the tremendous revenues it has reaped from this activity,” GTT argued.
GTT is maintaining that based on its investigation, Digicel should have paid US$30M or GUY$7B to Guyana’s treasury over the last five years.
“Think about the loss to Guyana if these taxes have not been paid. It is 30 million U.S. dollars that could have gone to new roads, bridges and other infrastructure improvements. It is 30 million U.S. dollars that could have been put to work to fight disease and improve healthcare. No matter how you look at it, this would mean a tremendous loss to our country and our people if the taxes have not been paid,” GTT further argued.
It said that Guyanese would agree that Digicel should not be allowed to flout the laws of Guyana by conducting an unauthorised international telephony business.
“The fact of the matter is, Guyanese citizens are arrested for significantly smaller transgressions than what Digicel has been doing for at least the last five years. So now, we must insist on action. Action that produces transparency and finally sheds a bright light on this dark activity that Digicel has been conducting,” the company insisted.
With liberalisation on the horizon, the practice of equity and transparent conduct of all players is of paramount importance, GTT reiterated.

SMOKESCREEN
However, Digicel has long rubbished the claims made by GTT. During a meeting with the Public Utilities Commission (PUC), Digicel Chief Executive Officer Kevin Kelly denied the allegations, stating that the remarks were being used as a “smokescreen” to cover up GTT’s “anti-competitive” act.
The matter surrounding Digicel’s alleged illegal bypass resurfaced last Wednesday after it took GTT to the PUC over what it considers to be an “anti-competitive” act. In a complaint to the PUC, Digicel contended that GTT’s promotion “Get More Pay Less” is “anti-competitive.”
It argued that 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 make 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.
Last Tuesday, when the companies met with PUC Chairman Prem Persaud, Digicel’s CEO explained that if the assumption were 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.