Government Spokesman attributes last minute withdrawal of legislation to threats of legal action from ATN, GT&T’s US Owners

Friday, September 30, 2011 – Georgetown, Guyana:  Digicel Guyana is demanding a full and frank explanation from GT&T’s US owners, Atlantic Tele-Networks (“ATN”) regarding the nature and extent of any legal threats made against the Government of Guyana concerning the planned introduction of telecommunications reform in Guyana last week.

Media reports in Guyana today attribute the dramatic 11^th hour reversal by Government last week to the “possibility of litigation and acrimony” which arose following communications between the Government and US based ATN / GT&T.   These reports appear to contradict statements made by GT&T’s CEO, Yog Mahadeo, last week when he stated that GT&T had made no last minute representations or submissions to Government on this issue.  This statement has now been openly contradicted by the Government of Guyana.   A full and frank explanation from GT&T / ATN is required.  

Gregory Dean, CEO of Digicel Guyana comments; “It really is a matter of very grave concern that a US based multinational would seek to intimidate and bully the Government of Guyana into submission in relation to a matter of such fundamental importance to the development of telecommunications and the economy of Guyana as a whole.  The people of Guyana deserve to know the whole truth about this most unfortunate episode”.

These comments follow statements made by Cabinet Secretary, Dr. Roger Luncheon in which the “fear of litigation” on the part of ATN was alluded to as a significant factor in the dramatic last ditch reversal of the Government’s plans to liberalise the telecommunications market.  The passage of this legislation would have provided for immediate competition in the international calling market and would have led tosignificant reduction in the price of  international calls for Guyanese consumers.

Digicel has formally written to Government seeking an explanation of events last week and is awaiting a response.  However, circumstances now demand that GT&T and its American owners come clean in relation to their actions which have, it would seem, led to the withdrawal of the liberalisation legislation which has been promised for so long.

Meanwhile, Digicel welcomes His Excellency, President Bharrat Jagdeo’s public statement at the GuyExpo launch on the commitment of the Government to liberalisation.  Further, the telecoms provider believes the factors that lead to the most recent failure ought to be revealed and discussed by stakeholders so that solutions can be found to avoid failure in the future.

“The people of Guyana deserve to have the benefits of full and open competition in all sectors including the telecommunications sector.  They should no longer continue to be losers financially and be denied access to new technologies.,” Dean concluded.

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