IN July 2016, a year and a half ago, Government passed the Telecommunication (Amendment) Bill to liberalise the Telecoms sector by ending the monopoly which GTT had enjoyed for over 25 years.

The Minister of Public Telecommunications, Catherine Hughes had always been sanguine as to the advantages of liberalising the sector and doing away with the monopoly. In her own words: “For Guyanese this will not only mean an increase in the availability of internet access, but can also see them receiving cheaper options, better quality and advanced telecommunications services as more investors are attracted.”

The value of competitors could be gleaned from the time DIGICEL entered the market. DIGICEL is a cellphone company and on its entry into the Guyana market, the cellphone rates fell by half. GTT, driven by its desire for larger profits, was charging the Guyanese customer 50 percent more than they could have done and still make a handsome profit. Sustained competition requires constant improvement in price and quality by those companies which are already in the market. Sometimes however, when there are only one or two competitors, competition becomes less important and they quietly settle down with their respective market shares. Thus, it is essential for new companies to enter the market and bring new benefits to the consumer.

Unfortunately, so far, the liberalisation has been delayed by the ironing out of GTT’s taxes owed to the Guyana Revenue Authority (GRA). GTT owes approximately US $44 million and they have been in discussion with GRA to try to settle this issue. The Minister of Public Communications has made it clear that they are in no way involved in the collection of taxes and cannot waive taxes to GTT. She has underlined that such matters are the province of GRA and the Ministry of Finance.

The GRA Commissioner has said that time was the essence of the negotiations with ATN/GTT and that he would be guided by strictly professional principles and would eschew any attempt to inject politics into the negotiations. The Commissioner General stated his position: “Taxation is based on principles. Anytime we decide to make it political, we have a problem. It must be above board and everyone must be treated equally. If in the negotiations which are going on and of which I am a part, if it reaches a level where the incumbent is trying to make it political, I immediately recuse myself.”

The Minister of Public Telecommunications has revealed that 20 companies, both local and overseas, have already expressed an interest in getting involved in the Telecoms industry, once liberalisation has been completed and the GTT monopoly has been disbanded. There has been no indication as to the companies contemplating entering the Guyana market, but a National Communications Agency has been established and will be able to have overall control and regulation of the Industry.

Delay in effecting liberalisation is in the interest of GTT, since it prolongs their monopoly benefits. More importantly, it allows GTT to consolidate their position so that they would be stronger than any of the new companies which may wish to enter the Industry. The authorities must therefore ensure that there is a level playing field for all companies and that no one has any unfair advantage. It is felt that if the bigger international companies were to enter the Guyana market, the benefits of liberalisation and competition would more quickly be enjoyed by the consumer.