Latest update April 23rd, 2024 12:59 AM
Sep 01, 2019 News
Almost six months after signing a “non-binding” agreement, both the Government and the US-owned Guyana Telephone and Telegraph Company (GTT) has maintained radio silence on the status of the liberalisation process of the telecoms sector.
A number of projects, including the landing of a submarine fibre optic cable by Digicel, to bring another link are among those in limbo.
Sources familiar with the situation indicated that the sticking point in the delays remains millions of US dollars in taxes dating back to the early 90s that the Guyana Revenue Authority (GRA) is reportedly claiming on advisory fees paid by the company to its US parent company, Atlantic Tele-Network, Inc. (ATNI).
GTT is reportedly offering to pay a few millions in settlement but it is not being accepted by the Government.
In the meantime, the entire liberalisation process appears to be waiting on a closure of the negotiations so that applications can be accepted and processed from other investors, which have been waiting to enter the lucrative telecoms market.
In March, after mounting pressure on a liberalisation date, both the Government and GTT announced that they have inked an agreement.
However, it was made clear, in a statement, that the Memorandum of Understanding (MoU) was non-binding in its nature.
Still, the two parties argued that it will spell significant advancement in the ongoing negotiations.
GTT, a US-controlled company that has been here for 28 years, taking over the crumbling state-owned Guyana Telecommunication Corporation in the early 1990s, has also been insisting on a number of concessions, including more spectrum, and reportedly tax breaks, to give up its monopoly on landline and international calls.
Several companies have been applying to operate internet TV, mobile services, and the landing of submarine cables to bring data. However, the ongoing talks have stalled the processing of the applications.
Minister of Telecommunications, Cathy Hughes, has committed to granting an interview when she is back from overseas.
GTT has landed a submarine cable a few years ago and is busy rolling out its services from this fibre link, which it says has 1,000 times the possibilities of the old, slower copper wire and satellite-linked connections.
The delays in closing the current negotiations have allowed GTT to continue rolling out its Blaze service to new areas.
Since coming into Government in 2015, the issue was high on the agenda of the Coalition to end the monopoly.
It entailed talks between the Government and the company about taxes, concessions and other issues.
Currently, only the Irish-owned Digicel is here, and it is limited to mobile services.
Government had committed to opening up the sector mid-last year, but it was delayed to the end of last year and then onto this year.
New laws allowing other players were passed in 2016 with the Guyana Telecommunications Telecoms Agency established.
The National Frequency Management Unit has been taken over by the Ministry, which is a new one established under this Coalition Government.
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