PUC, GT&T lock horns over new submarine cable project

Jun 07, 2009 News

The Public Utilities Commission (PUC) has called for a full disclosure from the Guyana Telephone and Telegraph (GT&T) of its submarine project.
The Commission, yesterday said that it had picked up media reports that GT&T is working towards its deadline of the second quarter of 2010, for the operationalizing of a new multi-million-dollar fiber optic cable.

The company has said the new project is part of its ongoing commitment to provide telecommunication services that meet both the current and anticipated future demands of the Guyanese consumers.
The PUC said that in discharging its regulatory obligations, it wrote GT&T seeking further information on the new 1,200 kilometer cable system – a projected joint venture between GT&T and TeleSur, Suriname.
According to the PUC, the telephone company responded by saying that it has “not yet finalized its business plan for the cable system, as we await clarification of the Government’s plans for the telecoms sector reform and for developing the ICT sector in Guyana.”
The Commission is of the view that the letter sends mixed signals on GT&T’s intention, with respect to the much publicised cable system, including indications by GT&T that a Memorandum of Understanding has already been signed.

“In the light of GT&T’s response to the PUC, the Commission is of the view that this is misleading to the Guyanese populace, to the business community, the State and the Regulator,” the PUC stated.
The Commission said also that it trusts there is no hidden agenda, “in that GT&T does not intend in a coup de maitre to stall further developments in the sector by raising the spectre of a sealed deal, when this seems to be far removed from the truth.”
GT&T, in a statement issued by Finance Manager, Yog Mahadeo, noted that the Public Utilities Commission (PUC) issued a Press Release in which it misconstrues a letter from GT&T to raise questions, whether the Company is moving forward with the submarine cable project and even insinuating that the Company may have ulterior motives for this cable system.

“GT&T wishes to remove any possible doubt on this issue. As the public knows from the much-publicised signing ceremony in Suriname in December 2008, GT&T has, in co-operation with the leading carrier in Suriname, entered into a binding supply agreement to have the cable system built and brought into operation in 2010.
“As GT&T informed the PUC, the necessary initial activities to design and build the cable are ongoing. To be clear, we are building this cable to ensure that Guyana and its citizens have more reliable access to new high-capacity bandwidth, at lower costs than satellite connections offer today.
“It should be noted that GT&T is funding its portion of the cable system, in excess of US$30million, at its own risk.

“The PUC concerns over the lack of a finalized business plan being misplaced. It is impractical for GT&T to finalize a business plan for this cable project, when we cannot know what demand will exist for bandwidth, what services will be in demand, or other relevant factors that may be determined by the Government’s ongoing sector review and ICT programme planning.
“Hence, GT&T is prudently holding off on finalizing a business plan for the new submarine cable system, until sufficient information is available to do so. We are disappointed that the PUC chose to go public with such an inflammatory press release, rather than clarify these issues by speaking directly with GT&T,” Mahadeo added.