…after Digicel complaint of int’l component

THE Public Utilities Commission (PUC) on June 15 ordered that the Guyana Telephone and Telegraph’s (GTT) “Get More Pay Less” promotion, which started on February 22, continue until August 22 following an objection by Digicel to the international outbound component of the promotion.
The Commission also concluded that the promotion does not appear to be anti-competitive and Digicel is not at a disadvantage as a result of the promotion.
Digicel has labeled that aspect of the promotion as anti-competitive, noting that the promotion provides all of GTT’s customers with minutes that could be utilised to make calls to the USA and Canada. The “Get More Pay Less” promotion offers customers a bundled package comprising three services to consumers namely: a daily + plan which costs $449. Customers who subscribe for that plan get 15 free minutes, 30 free text messages and 200 MB of data.

The three day plan by the company offers customers 25 free minutes, 500MB of data, and 50 free text messages at a cost of $749 while the weekly plan stands at $1449 and offers 1000MB of data, 40 free minutes and 80 free text messages. There are two monthly plans, the first costs $3499, and comes with 100 free minutes 200 free texts and 3000MB of data while the Monthly + plan costs $5199 and has 150 free minutes, 250 free texts and 4200MB of data.
The minutes offered in the promotion could be used in a number of ways including calls to the United States and Canada. Digicel said too that if all of the minutes provided for in the promotion are used exclusively to make calls to the USA and Canada then the effective rates of those calls would be significantly lower than the approved retail rates by the PUC to the two countries.
Additionally, Digicel contends that the promotion is anti-competitive since GT&T still holds a monopoly in the market for international services in Guyana, and is providing Digicel with a wholesale rate which is considerably in excess of the highest possible retail rate its customers would pay.

As such, GTT’s lone competitor in the sector called on the PUC to suspend or terminate the promotion and any further promotion until the hearing and determination of the complaint. Alternatively, Digicel requested that the Commission orders that all present and future promotions concerning international rates, be extended by GT&T to Digicel and to be offered as part of their bundled minutes to their customers.
In response, GTT relied on Section 6.2 of the Government of Guyana/ Atlantic Tele Network Agreement claiming legitimacy of its actions. That Section states that “the license granted GTT in respect of the services referred to in sub-paragraphs (a), (b) and (c) of Section 6.1, during the period of the licence issued to GTT, no other company, nor Government, shall provide any services to which the licence relates.”
As a result of the aforementioned section, GTT argued that it has every right to continue with its promotion, and it will continue to insist on even-handed treatment in the sector and the consistent application of the rule of law.

Following GTT’s response, the PUC began a hearing on March 21. At the hearing, Digicel continued to urge that customers are likely to utilise all of the minutes in the bundled promotion to make calls to the Unites States of America (USA) or Canada, and in so doing the cost per minute will be substantially below the PUC set rates. GTT on the other hand submitted that the promotion in question is beneficial to its consumers and can hardly be deemed discriminatory to Digicel’s consumers.

“To ascertain the veracity of Digicel’s assumptions, we requested that GT&T submit to the Commission on a monthly basis the number of subscribers to the bundled plan; and the distribution of minutes of usage that must include both local and international minutes.
“ GTT has complied with the Commission’s directive and the Commission has since received from the company the latest three months of the bundled plans and minutes of use. Digicel was also requested to provide information to the Commission showing the impact, if any, that GTT’s promotion may have on the outbound segment of its business. “Unfortunately, Digicel failed to respond to that request,” the PUC said. However, the PUC found that the data supplied by GTT indicated that approximately 96 per cent of the minutes used were made to the local networks and four per cent were used to satisfy international services.
“Further, we are of the opinion that there was no significant switching by Digicel’s consumers to GT&T’s network to take advantage of the promotion,” the PUC stated. GTT has to inform the PUC of the conclusion of the promotion.