Digicel preparing for end of telecoms monopoly by early August

CEO of Digicel Gregory Dean says that the company has started to prepare for the breaking of GT&T’s decades-old monopoly on international voice and data services, for which government has signalled an early August deadline.

The planned debate and expected passage of two bills to liberalise the sector have been deferred for months to allow for negotiations on the liberalisation. During Wednesday’s sitting of the National Assembly, Prime Minister Sam Hinds announced the further deferment of the two connected Bills – the Telecommunications Bill 2012 and the Public Utilities Commission (Amendment) Bill 2012. He said that the government was continuing its review of the bills, which were first introduced in the House two years ago. Hinds said that meetings will be held on Wednesday, Thursday and Friday this week to continue the talks. He said that it is the expectation of government that the bills will be moved forward in the coming month.

Dean, in a statement issued to Stabroek News, said that talks between the government and the company have been fruitful.

 Gregory Dean
Gregory Dean

“Digicel looks forward to seeing the final draft of the legislation and regulations which we expect to create a level playing field for all players and will also benefit customers,” he said.

“Digicel looks forward to the government’s early August deadline being achieved based on the smooth progress of negotiations,” he added.
Dean noted that with this date in mind, Digicel has started making preparation to make significant changes to plans and services offered, particularly in international calling and business solutions.

The sector will be effectively liberalised and the GT&T monopoly broken once the legislation passes and is assented to by the President, this newspaper understands.
The legislation, when passed, is expected to result in greater choice, better quality service and lower prices for consumers. It will also cater for the expansion of telecommunications services in unserved areas. The Bill seeks to establish a new telecommunications agency into which the National Frequency Management Unit (NFMU) will be
incorporated and which will function under the supervision of the minister, who the Bill deems the technical regulator of the sector and who will be responsible for licencing the spectrum and other technical matters.

The new legislation is expected to create a clear and harmonised framework and a level playing field for the sector, presently lacking in the current laws. It is meant to be characterised by transparency and non-discrimination in the issuance and monitoring of licences and authorisations to use the spectrum, better interconnection and access between networks and services, and price regulation where required to ensure competition and consumer protection.

Once the legislation is enacted, the Public Utilities Commission (PUC) will continue to function as the economic regulator of the sector, with the responsibility of ensuring a competitive environment, integrated networks and services, consumer rights and fair, reasonable and non-discriminatory prices. According to the bill, the minister will ultimately “grant or deny applications for, and amend, renew, suspend and terminate, licences, exemptions and frequency authorisations.”

Further, the Telecommunications Agency to be set up under the legislation will, among other things, advise the minister and implement his directions on plans, positions and policies relating to the telecommunications and spectrum issues at national, bilateral, regional and international level. It is also to receive and review applications for licences, exemptions and frequency authorisations and provide its recommendations thereon to the minister.