More than a decade later….Gov’t still moving to end telecoms monopoly

Having spoken about it for more than a decade, government is hoping to table legislation before the end of the year that would break the existing monopoly in the telecommunications sector and make it more open and competitive.

This announcement was made on Thursday by Cabinet Secretary Dr Roger Luncheon during his post Cabinet press briefing at Office of the President.  He said during Tuesday’s Cabinet meeting, it was disclosed that “the legislative and regulatory reform processes in the telecommunications sector are coming to an end.”According to Luncheon, the drafting of the bills was practically completed and this included areas relating to regulations and licences.

Luncheon said the final phase includes a week-long period of engagement with Cabinet, where the draft legislation will be “considered” and contributions made to its “finalization.” Subsequently, the legislation will be disseminated to stakeholders. By October, the intention is to have public consultations and thereafter there will be the final drafting of the legislation by the Attorney General’s Chambers. If all goes according to plan, Luncheon said, legislation would be tabled in parliament by the end of this year. “The mantra has always has been the open, competitive telecommunications sector,” he said, stressing that there were several benefits of the move. “We in the administration here have made it something like the Holy Grail, in bringing to Guyana and to Guyanese the fairly obvious benefits of an open, competitive sector.”

Luncheon explained that the legislation will be seeking “to convert a situation of monopoly” as it relates to the interpretation of the operating licence that GT&T was granted in the early 1990s.  He said the intention is to mainstream the “current technical and regulatory practices both on the landline side and on the cellular side.” He added that with the implementation of “hallmark reform,” the telecommunications sector would be comparable to the rest of CARICOM.

Earlier this year, outgoing GT&T CEO Major General (rtd) Joe Singh announced that the company had formally applied to the government for another 20-year operating licence, in keeping with the clause in the original contract which allows the entity to apply for a renewal. The company’s original 20-year agreement expires at the end of this year.

In 1990, the then PNC administration and ATN signed an agreement in which ATN acquired 80% shares in GT&T and the government retained 20%. GT&T subsequently commenced operations on January 28, 1991.

The government is currently in the process of selling its shares in the company.

In recent years, President Bharrat Jagdeo has repeatedly expressed his frustration at GT&T’s monopoly in the telecommunications sector and has indicated a desire to end it, particularly as it relates to the international gateway.  The government and GT&T have been engaged for many years in dialogue on the liberalization of the telecoms sector.