The Public Utilities Commission (PUC) yesterday said it has noted with regret and concern the Chief Executive Officer (CEO) of the Guyana Telephone and Telegraph Co. Ltd, R.K. Sharma seeking apparently to try the Company’s appeal against an Order of the PUC in the print media.
In a release, the PUC noted that the CEO revealed in a statement reported in yesterday’s Stabroek News that an appeal has been filed against the PUC’s Order and then went on to state that the PUC’s Order is “emblematic of the frustrating distance between the Government’s words and actions when it comes to modernizing the Telecoms Sector.”
The PUC yesterday said it has “difficulty in understanding what the CEO is trying to or hoping to achieve, but he is fully aware that the Commission is not subject to the direction or control of anyone or any institution”.
It added that Sharma has refused to acknowledge that the question of spectrum is determined by Government policy of which the PUC is not party.
The PUC last month dismissed GT&T’s application to implement reductions of international rates and increased rates for the domestic market. GT&T based its submission on its June 18, 1990 licensing agreement, under which it is entitled to “a minimum of 15% return” on capital dedicated to public use. GT&T claimed that it suffered a $738 million deficit and needed the increases to maintain its 15%. It has argued that even with the rate changes, Guyana’s rates would still have remained among the lowest in the region.
In reaching its decision the PUC pointed out that while GT&T was seeking to invoke the agreement to support its claim, it had failed to fulfil its obligations to provide a universal landline service under the same agreement. The Commission noted that the agreement stipulated that “GT&T [will] establish facilities permitting telephone service along the entire coast from Crabwood Creek to Suddie and in interior locations within three years” but over two decades later “many persons are not the recipients of telephone service.”
In response, Sharma accused the PUC of incorrectly assessing GT&T’s long history of investment, while calling the decision a “list of grievances that are without merit” in a modern telecommunications sector. “The truth is, we’ve fulfilled all our obligations and invested US$250 million since our last rate change and more than US$391 million since our contract began,” he said.
He added that the PUC did not consider the practical effects of its decision, which will force consumers to pay higher long distance rates.
GT&T’s application proposed increases for services, such as installations, transfers, additional jacks, wake-up call, 3-way calling, voicemail, call forwarding and reconnection. It also sought to increase rates for intra exchange calls during peak hours by 40% and during non-peak hours by 60%.
The current intra-exchange call rate is $.60 (peak) and $.30 (non-peak). For inter-exchange calls (calls from one zone to another), it proposed increases by 20% for both peak and non-peak hours. The current rates for peak hours, per minute are Zone A-$3, B-$4, C-5$ and D-$7. During non-peak hours the rates are $2, $3.6, $4.8 and $5, respectively.
