All cable broadcasters would have to pay outstanding spectrum fees as bad debts might determine whether they are granted licences in the future, says Chairman of the Guyana National Broadcasting Authority (GNBA), Lennox Craig.
“All whose accounts are due will have to pay,” Craig told Stabroek News, when contacted yesterday.
“I would want to caution broadcasters that their payment history can affect the decision to grant licences in the future. That will be something we will have to take into consideration,” the GNBA Chairman also said.
A forensic audit, conducted last year by the Ram and McRae accounting firm, which was released last week, found that the National Frequency Management Unit (NFMU) and the GNBA are owed millions from broadcasters and pointed specifically to E-Networks and Quark Inc. – controlled by persons with strong political connections to the former PPP/C government. The report also stated that the two companies were not invoiced on a timely basis and ignored NFMU’s invoices for long periods.
The audit report also said that the PPP/C administration did not alter the current fees structure, to include a method to calculate spectrum fees for cable TV providers and the NFMU did not invoice or request payments for frequency spectrum used by both entities to broadcast cable TV. Following its request, the auditor said that the NFMU estimated that E-Networks and Quark Inc. owed at December 31, 2014, $31M and $29M, respectively.
The auditors said they were advised that in December, 2010, former President Bharrat Jagdeo granted Quark Inc. permission to broadcast television signals on the much sought 2.5 GHz band, which allows for cable TV operations and internet-related services. “We are not aware, nor were we provided with any evidence that the President had any such authority. Additionally, since 2010, Quark Inc. also known as Movie Star has been providing cable TV and wireless internet services,” it said.
“Also, our reviews and enquiries revealed that Quark Inc. did not pay any spectrum fees to the National Frequency Management Unit for the 2.5 GHz band used to broadcast for the period 2010 to 2015. It was explained that the reason is that the NFMU did not invoice Quark Inc. since the law does not provide a method to calculate fees for cable TV operators,” the report added.
To compound the matter, it said Quark Inc. has made no payment to the Guyana National Broadcasting Authority since it is not a licensed broadcaster.
According to the report, E-Networks Inc., which was established in April 2004 to provide wireless internet service, was issued four warnings by the NFMU extending from April 4, 2004 to February 18, 2007 in respect of operating telecommunications equipment to provide internet and television service without ownership of the relevant licences. Throughout that period, it added, E-Networks ignored the requests for compliance from the NFMU and did not properly apply for a Post and Telegraph licence until December, 2007. No action was taken to ensure compliance and no payments were made to the NFMU until December 4, 2007, it further said.
‘All to reapply’
In addition to E-Networks providing wireless internet services to customers without being licensed to do so during the period 2004 to 2007, the report said it was broadcasting cable TV without ownership of a broadcasting licence during 2006 to 2012; and it was not billed spectrum fees for the 2.5 GHz band used to supply cable TV during 2010 to 2013.
The GNBA Chairman said yesterday that he has not completed an analysis of the audit report and as such cannot comment on its findings at this time.
However, he informed that with respect to licensing cable companies, from the GNBA’s perspective, based on the interpretation of the law, these entities needs to be licensed.
“Just like TV and radio, we expect all (to be licensed)and we are doing a study of the landscape and we are implementing regulations, under the broadcast act, and when all of that is finished, my belief and my expectation is that everybody will have to reapply,” Craig asserted.
“There are some people who are currently illegally occupying spectrum and broadcasting and everybody will have to comply. Every last person that utilises our airway for any form of broadcasting must comply. There is no anyway around it,” he added.
And those operators who have outstanding accounts with the GNBA, the agency says that it has been pleading with them to settle or work out a payment plan for their accounts.
“These are monies that are owed, based on the law and regulations and they must be paid. We have been continually asking persons to come in and settle their accounts and if they can’t settle their accounts and if they cannot make the payments in one tranche they can come in and make an arrangement with us,” the GNBA Chairman stressed.
