PUC halts new Digicel rates ads

The Public Utilities Commis-sion (PUC) yesterday ordered Digicel to immediately withdraw all advertising of new rates even as the company declared that it is willing and ready to fight any legal action its competitor, the Guyana Telephone and Telegraph Company (GT&T) mounts, and will aggressively defend its legal right to provide low cost international calls.

Further, GT&T obtained an ex parte interim injunction yesterday restraining Digicel from advertising commencing, running or operating an international call service other than through interconnection with GT&T or without first obtaining a licence to do so as required by the provisions of the Telecommunications Act of 1990.

Digicel Guyana began offering its lowered international rates this week following a decision of the High Court last week Friday which said in part that GT&T’s monopoly is unlawful and invalid.  The rate cuts went as high as 88%.

Chief Executive Officer of Digicel Guyana, Gregory Dean yesterday said, “Digicel has long promised the people of Guyana that it would provide hugely reduced rates for international calling and the company is determined to do so.”

“As champion of the consumer, we immediately made good on that commitment following the Court’s decision.  We are ready and willing to compete with GT&T and challenge them to take us on where it matters – in the market. Is GT&T ready and/or willing?” Dean asked.

Dean said Digicel is ready and available at short notice to appear before the Courts to defend any efforts which may be made to prevent Digicel’s ability to provide low cost international calls.

“The company fully expects that it will be notified of any legal action that may be mounted to resurrect the GT&T monopoly and be given a proper opportunity to fight for the rights of the Guyanese consumer in any legal action that may be pursued,” Dean said.

“…we will not sit idly by and allow a return to the bad old days of monopoly prices. We are thrilled with the incredible response we have received from the public and sincerely thank all those who have expressed their support and encouragement.  Digicel wishes to assure all Guyanese that it will not give up this battle for lower rates as well as better and more widely available services,” Dean commented.

Head of the Presidential Secretariat Dr. Roger Luncheon said on Wednesday that Office of the President has been provided information concerning the actions of Digicel subsequent to the recent ruling of Justice Rishi Persaud in the Commercial Division of the High Court. “The Office of the President wishes to state that unilateral amendments and alterations to existing telecommunications rates based on Justice Persaud’s ruling is inconsistent with Justice Persaud’s ruling since that ruling was stayed on an appeal by GT&T,” Dr. Luncheon said.

Speaking to Stabroek News yesterday, acting CEO of GT&T Major General (retired) Joe Singh said that the actions of Digicel Guyana fly in the face of the country’s sovereignty. “It is a clear violation of the law [for that company] to ignore the order of the court,” Singh said.

He called the rate reductions cosmetic and urged persons not to be misled by the “carrot on a stick” approach Digicel is employing, saying that the matter has to do with respect for a sovereign country and its agencies, such as the Public Utilities Commis-sion (PUC). “The company is behaving as though it is a law unto itself,” Singh said.

Singh pointed out that all rate adjustments must be done through the PUC and in failing to adhere to this the company is in clear violations of the Telecommunications Act. He said that Digicel is treating a sovereign state and a government with contempt.

A source from GT&T confirmed that the interim injunction that GT&T obtained further restrains Digicel from fixing, advertising, charging or collecting other rates in respect of such services without first obtaining the approval of the PUC after the Commission has had a public hearing as required by the PUC act.