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GUYANA CHRONICLE Thursday, October 25, 2018
GTT makes case for tariff increase …consumer body objects By Lisa Hamilton THE Guyana Telephone and Telegraph (GTT) has applied for an increase in the tariff regime for access and landline-metered charges, which has been met with disapproval by the Guyana Consumers Association (GCA) The company addressed its application to the Public Utilities Commission (PUC) on October 1 and, in summary, requests approval to implement bundled packages for its wireline services; increased wireline access charges and increased landline-metered charges for intra calls. On Wednesday at the Roraima Duke Lodge, the PUC commenced a public hearing into the matter and was represented by its Chairman Dela Britton. Representing the GTT was Director of Legal and Regulatory Affairs, Mark Reynolds; Director of International Regulatory and Governmental Affairs, Delreo Newman; Manager/ Financial Planning Analyst, Tianna Roberts; and Vice-President of Finance and Corporate Controller, Mark Singh. Meanwhile, the GCA was represented by its President Patrick Dial and Adviser and former GTT head, Yog Mahadeo. Reynolds posited that the changes are necessary to facilitate rebalancing of the prices of GTT’s telecommunications services. This rebalancing, he stated, is not a novel process and has been done in countries prior to liberalisation. At the same time, he said that the changes were recommended to the Guyana Government by the International Telecommunications Union (ITU) in a policy document some 17 years ago. The company argues that failure to “re-balance” before the advent of full competition [liberalisation] would compromise the company’s financial ability and threaten the existence of the public switch telephone network.
GTT is therefore proposing raising the price of access in GY$50 increments every six months, for at least the next year. They are also requesting increases in the intra-calling rates for customers with 1-2 lines from $750 to $800, with an increment of $50 to be added six months after implementation. For residents with more than two lines, the old charge of $1,500 has been proposed to be moved to $1600, with $50 increment to be added six months after implementation. Meanwhile, businesses with 1-4 lines which previously paid $2,250 are proposed to pay $2,500; and those with more than four lines will remain at $4,500, as no rate adjustment is being requested of the PUC. Relaying its mindfulness of customers who are “socio-economically disadvantaged,” GTT proposes a ‘Lifeline’ package and customers who request it will not be subject to the proposed second rate adjustment. It comes with an offering of 10 minutes free intra-calls and five minutes free inter-calls per month for all customers, along with a voicemail service. All minutes thereafter, on both inter and intra exchange, will be charged twice the new call rate. The new intra-exchange call rate is being proposed to move from peak rates of $0.80 to $1.25, while offpeak rates are suggested to be moved from $0.40 to $0.75. Newman stated that the lifeline offering is premised on the fact that only approximately 38 per cent of customers make 10 minutes’ worth of intra- calls or less, while 46 per cent make five minutes or less of inter-calls. GTT is hoping that with these provisions, less than one per cent of customers will fall off the network. Addressing the PUC, the GCA rejected the company’s application, as it stated that “GTT in its filing is slyly trying to lead the PUC into
the trap of fundamentally negating the functioning of the Free Market. We emphasise that the PUC must never allow itself to go against the government’s free-market and liberalisation policy; and more particularly, to undermine the price-equilibrium mechanism of the free market,” Dial communicated to the PUC in a letter. He contended on Wednesday that failing to implement the changes would not see the GTT “falling into financial trouble,” as landlines are not their only stream of income. He also posited that the telecommunications company must first meet certain criteria and standards of provision of service, before it should be entitled to increases. “Until GTT is able to satisfy these things, I cannot see them getting any entitlements. The entitlement is based on your performance,” he stated. Dial and Mahadeo together argued that the17year-old research conducted by the ITU may not be applicable to Guyana today, coupled with the presence of updated technology which now provides the company with a boost in income. The two also reminded the commission that although GTT is basing its demand for rebalancing on Sections 32(2), 33, 41(1) and 41(2) of the PUC Act, that Section 32(1) must not be omitted. The section states: “Every rate made, demanded or received by any public utility from persons making use of the service provided by it, shall be just and reasonable and in conformity with any written law…” Putting forward that the five minutes per month free inter-calls would only amount to some nine seconds per day, he urged the commission to be mindful of the welfare of consumers, investors and the country’s long-term vision for development. The hearing has been adjourned and will resume at the same location on November 20 at 10:00hrs.
Representatives of GTT from left, are: Director of International Regulatory and Governmental Affairs Delreo Newman; and Director of Legal and Regulatory Affairs, Mark Reynolds. (Adrian Narine photo)
Representing the Guyana Consumers Association (GCA) from left are President Patrick Dial and Adviser and former GTT head, Yog Mahadeo. (Adrian Narine photo)
Members of the Public Utilities Commission (PUC) review the application of GTT on Wednesday at the Roraima Duke Lodge (Adrian Narine photo)