No place for Govt. in telecoms business…CEO RK Sharma says…GT&T not being allowed to expand
As the debate continues over the state’s aggressive E-Governance project to connect its offices and build internet towers across the land, the country’s biggest telephone company has complained that a delay in permission to expand has halted the advancement of new technology in the local telephone and internet sector.
GT&T’s CEO, Radha Krishna Sharma
Speaking with media operatives on Saturday evening during a dinner social, Chief Executive Officer of the Guyana Telephone and Telegraph Company (GT&T) Radha Krishna Sharma, made it clear that Government has no business in the Information and Communications Technology (ICT) Sector, and rather, it is an area that should be spearheaded with capital from the private sector.
Government has been moving to liberalise the telephone sector for a number of years. Since taking over the state’s telephone company in the early 90’s, GT&T, which is majority owned by US-based Atlantic Tele-Network (ATN), has held the monopoly on landline and international calls. Currently, legislations by Government are before the National Assembly that, once passed, will allow new players to enter the market, in effect breaking that monopoly.
During GT&T’s annual media dinner at Grand Coastal Inn, East Coast Demerara, Sharma explained that in 2010, the company spent US$30M to bring the Suriname/Guyana Submarine Cable System. The cable, he said, has tremendous potential for bandwidth delivery potential in Guyana and would have had developmental impact in keeping with the country’s national ICT objectives.
“We formally submitted a request to GOG for spectrum allocation to facilitate a phased 3G/4G rollout. This submission included field test data, economic analysis and a macro project plan, inclusive of geographic phases for the planned rollout.”
The 3G/4G that Sharma is talking about would have allowed for faster internet speeds to smartphones and tablets. There are incessant complaints now that the current service to smartphones offered by both GT&T and Digicel, leaves much to be desired.
No Permission
“Regrettably, we are now in 2014, technology has changed and the rapid advances in 3G/4G architecture in the global industry are everywhere with live regional networks deployed, handsets availability by major suppliers has increased with pricing trending downwards but GT&T has not been afforded the appropriate spectrum allocation to make 3G/ 4G a reality for all Guyana. This is to the detriment of the sector and national ICT goals,” Sharma said.
The CEO said that GT&T and its parent company, ATN, in September again formally submitted an updated request for spectrum allocation to the Government.
“Whilst discussions are ongoing and we must respect the confidentiality and integrity of the said process, suffice to say that our plan was adjusted and updated based on growth and changes in the industry and market over the three year period from initial ask.”
The executive noted that the net effect of the impasse has been stagnation in the industry with the company unable to invest, another negative effect on the nation as a whole.
“We must stress that none of our submissions for spectrum prevent barriers to entry and access to any existing or future investor in the wireless market.”
The CEO also said that GT&T has noted with interest the stated plans for Government’s E-Governance deployment, which from publicly available information, has a major LTE component.
“LTE (Long Term Evolution) being used interchangeably with 4G and it can be observed that towers associated with this state initiative are being constructed.”
Long Term Evolution, commonly marketed as 4G LTE, is a standard for wireless communication of high-speed data for mobile phones and data terminals.
No place
Sharma was clear where his company stood with the E-Governance project.
“GT&T with no reservation, based on the global market and industry dynamics and actual success stories, can unequivocally state that ICT sector development must be spearheaded by private capital and 4G is a major component of same, hence the criticality of spectral policies which are transparent, market based and are designed to support national development.”
The company said that Guyana has lost four years since its initial request to facilitate 3G/4G technology in the country.
“To this end, we intend to intensify our efforts in discussions with the Government to allow for this, which is an everyday usage in other Caribbean territories.”
This particular issue has been a sensitive one. Currently, a number of companies, including Global Technology and Quark Communications, have been earmarked for telecoms licence, once the new laws are passed. Both companies have linkages to Dr. Ranjisinghi ‘Bobby’ Ramroop, a close friend of former President Bharrat Jagdeo.
Other countries, because of how lucrative the telecommunication business is, have been moving to ensure that they receive big bucks for the licences. Jamaica last year attempted to auction the licences, while in India, the industry remains one that is watched jealously by players.
Meanwhile, Sharma made it clear that GT&T is serious about investing over $58B in the last 23 years, and paying $51B to the National Treasury for various revenue commitments.
It has now increased landline services from 11,000 customers in the early 90’s to 154,039 subscribers.
“We increased the number of Earth Stations from one to seven, and very importantly, we were the first to launch wireless services in Guyana along with continued deployment of cell sites across the country.”
With regards to the current legislations, Sharma said that GT&T remains prepared to appear in Parliament to make contributions.
However, the official was also unhappy with a number of disruptions. “For 2013, GT&T sustained 68 instances of third party damages and 40 incidences of vandalism to our line plant facilities. The total restoration cost was in the vicinity of $50M. For 2014 thus far, there has been six instances of third party damages and one incidence of vandalism. It should be noted that cost mentioned does not take into consideration revenue foregone due to lines being out of service. Additionally, resources have to be diverted to address these damages leading to delays in scheduled works,” the GT&T Boss explained.