Prime Minister Brigadier (ret’d) Mark Phillips, who also holds the telecommunications portfolio, has hailed the improved information and communications technology (ICT) service and infrastructure which came as a result of the liberalisation of the telecommunications sector.
The Peoples’ Progressive Party (PPP), after taking office on August 02, 2020, made the liberalisation of the telecommunications sector, and on October 05, 2020, the commencement orders were issued.
Prime Minister Phillips, in a statement observing the first anniversary of the historic move, said the groundbreaking decision immediately opened up massive business opportunities by welcoming new entrants in ICT and ICT-enabled businesses to operate locally. He added that not only did the liberalisation of the sector make Guyana a more attractive business destination, but it also placed the country on global standards in regard to ICT operations.
“Soon our country will see a proliferation of added telecommunications operators, internet service providers, data centres, call centres, and business process outsourcing operations – each of which creates an increase in demand for skilled professionals. These positions will be required to be filled by our local workforce, thereby creating more jobs for our citizens,” the Prime Minister said.
He added that Government recognises that liberalisation must come with complimentary work in capacity building of the regulatory entities. On that note, he explained that Government have committed to working on this goal in regard to strengthening the telecommunications agency in preparation for regulation in a liberalised environment.
The Prime Minister furthered that the Public Utilities Commission (PUC) has executed some works in preparation for the expected influx of opportunities from the transformed telecommunications sector. He hailed the establishment of an internal monitoring unit to ensure that effective monitoring and compliance with the required quality of service standards are maintained by operators.
“Looking forward, the PUC will be working in strict adherence to the provisions of the Telecommunications Act No. 18 of 2016, particularly in the areas of monitoring the competition in the market by creating modules on monitoring and reporting of anti-competitive behaviour; reviewing the interconnection agreements between the operators as well as the Commission’s existing sanctions policy and enforcement policy; examining existing quality of service (QOS) and making recommendations for reform; launching online surveys on QOS issues; conducting public consultation on expectations of liberalization, and continuing to process consumers’ complaints,” the Prime Minister outlined.
Phillips said it is Government’s intent to provide an open, liberalised and competitive sector that is attractive to new entrants with the expectation that it results in greater choices, a better quality of service, and lower prices for consumers. He added that they are optimistic about the changes in the sector and what the future holds.
The Prime Minister related that Government has seen the far-reaching and long-term benefits of liberalization, as it deters the monopolisation of telecommunications services by any one entity, increasing access to telecommunications networks and bringing a wider and more affordable list of options for citizens.
Liberalisation journey
In 1990, the Guyana Telephone & Telegraph Company Limited (GT&T) was granted a licence by the Government of Guyana, giving the company a monopoly on landline services and international outbound and inbound calls in Guyana. However, no provision was made in the licence for monopoly operations of mobile voice services. In 2007, U-Mobile (Guyana) Inc, trading as Digicel, entered the Guyana market and was granted a licence to operate mobile voice services, heralding competition in the mobile market.
On October 5th, 2020, when the Telecommunications Act No. 18 of 2016 became effective, creating an automatic termination of GT&T’s monopoly designation, the telecommunications sector entered into an era of new possibilities. The concept of liberalisation was finally realised. The Government of Guyana granted new licences to the Guyana Telephone & Telegraph Company Limited and U-Mobile (Cellular) Inc., and also issued a licence to a third operator, E-Networks Inc., all of which have expanded the Public Utilities Commission’s (PUC) regulatory reach.
On October 23rd 2020, by the requisite publication in the Official Gazette, seven accompanying telecommunications regulations became effective: Licensing and Frequency Authorisation; Spectrum Management; Universal Access and Universal Services; Interconnection and Access; Pricing; Consumer Protection, and Competition. As a consequence of this, competition was increased, and modern (4G and beyond) service is being extended to previously underserved areas.
Competition is driving innovation as companies move to improve service and keep/acquire customers. Operators are investing in networks to provide modern and up-to-date services to Guyanese in order to win and retain customers. The new submarine cable to be landed by U-Mobile (Cellular) Inc. is expected to lead to more competition for international data and international long-distance service, thus resulting in reduction of prices, especially for high-speed Internet.
Government is currently in the advanced stages of awarding another telecommunications licence for a 5G carrier.
The Telecommunications Act of 2016 was first laid by the Government in the 9th Parliament in August 2011, and laid again in the 10th Parliament in 2012, after extensive consultations with both the public and operators. During the life of both Parliaments, the Act enjoyed commendable bipartisan support. It spent considerable time before a select committee chaired by Carl Greenidge, which included Former Prime Minister Samuels Hinds and then Minister Mohamed Irfaan Ali.
The Act was finalised before the 2015 elections and was enacted by the coalition Government in 2016 by Minister Catherine Hughes, again with bipartisan support. It was passed with the stated intention of ending the monopoly which GTT has enjoyed.
Under the coalition Government, it was reported that the liberalisation of the sector was heavily dependent upon the settlement of a US$44 million tax claim against GTT by the Guyana Revenue Authority (GRA).
According to reports, the local telecommunication giant wanted the tax debt settled before moving ahead with liberalisation. As such, the former Government failed to bring into force the Act that they themselves passed.
