Digicel Guyana has implemented its announced rate reduction for overseas calling, although the Public Utilities Commission (PUC), which is responsible for regulation, was not informed of the move.
A source from within the telecoms company disclosed yesterday that Digicel’s lawyers were considering the matter with a view to determining the next steps. “The new rates [up to 88 percent reduced] have been implemented as at 18:00 hours on Tuesday,” said the source.
The PUC confirmed that it has not been approached by Digicel about the new rates and this led to the PUC requesting information of Digicel about the move to lower rates. “There was no application by Digicel Guyana. We are reviewing the decision and we have requested further information from Digicel,” a PUC official, who asked not to be named, said.
The official noted that under the PUC Act, any reduction in rates must be set by the PUC. The source said that this is different from promotional rates, which may be applied from time to time. “Digicel Guyana has erred by not looking at the PUC legislation before implementing the new international calling rates,” the official said.
Digicel’s decision followed last Friday’s High Court’s ruling by Justice Rishi Persaud, who upheld the contention that GT&T’s telecommunications service monopoly is unlawful and in breach of the Civil Law of Guyana Act. “I… uphold the plaintiff’s submission on this issue and find that the licence granting an exclusive monopoly to [GT&T] to provide telecommunications service or to control or regulate voice and data transmission on the internet is unlawful and void,” he wrote in a decision against GT&T’s authority over internet calling. There has been a stay of execution on the decision, after an appeal by GT&T.
In a press release from Digicel Guyana on Monday, Digicel said calls to the Caribbean, USA, and Canada are now reduced by up to 62%, while China and Brazil will see reductions by over 80%. It noted that GT&T has claimed a monopoly on international calls since 1990, forcing Digicel to route international calls through GT&T’s network.
The company’s Chief Executive Officer Gregory Dean was quoted as saying, “Digicel is elated to finally provide Guyanese consumers with fair international calling rates after decades of exploitation by GT&T.”
He added, “Digicel has been operating under a monopoly held by GT&T for the past five years and we are happy that customers will now be able to reap the benefits of a fully liberalised telecommunications sector. Reducing international callings rates is just the beginning; we have extensive plans for further growth of Guyana’s telecoms industry. Customers will soon be able to enjoy other fantastic offers on international calls.”
GT&T, in a press release on Tuesday, said that the Commercial court ruling by Justice Persaud “is in clear violation” of its lawful rights under the Telecommunications Act of 1990 and other Guyana laws.
GT&T said that because the Commercial court has already stayed its ruling, the enforcement of the judgment has been suspended. “Today (Tuesday) we submitted our appeal of the decision and remain entirely confident that the decision will be overturned by the Court of Appeal,” GT&T said.
The company said that it stood ready to negotiate “a thoughtful, comprehensive policy that both protects consumers and promotes further investment by GT&T in Guyana’s telecoms sector,” and added that attempts to develop telecommunications policy through piecemeal court decisions are harmful to both consumers and the country. “GT&T has long made it clear that we support an open and competitive telecommunications landscape,” the GT&T release said.
Attempts to elicit a comment from either the acting CEO or CFO of GT&T have proven futile.
