Georgetown: The Guyana Telephone and Telegraph Company (GT&T) has failed to justify any increase or variation in fees charged for its services, and has accordingly had its application for rates increases denied by the national regulatory body, the Public Utilities Commission (PUC).
The PUC, in its decision, pointed to numerous failures on the part of the telephone company to make good on corporate commitments.
GT&T had initially requested an increase in rates for some of the services it provides, along with a net reduction in outbound rates, the setting of a tariff for certain services provided for which no tariff has been approved, and a change in the methodology by which some services are billed.
GT&T had consistently argued at hearings that its proposed new rates would not exceed 15%; but the PUC, on the other hand, outlined that the company had been receiving more than its allocated 15% return on capital dedicated to public use.
The regulatory body, calculating the GT&T revenue on the basis of the sum total of all its properties, plants and equipment, said the company’s quota of income findings had not been properly organized in order to meet its requirements.
“All the revenues and expenses are merged, so we do not get a true picture of what its costs, say, for the regulated sector to function. We do not have an idea what machinery and plant, and what percentage of them is used for the non-regulated sectors. The GT&T has the overall figures, and must know what their expenses are,” the PUC has decided.
In relation to “spectrum,” the telegraph company‘s current Frequency Allocation lies at 3.5 GHz. However, GT&T’s complaint is that the 3.5GHz spectrum is not efficient, has limitations, and that the amount is insufficient for the new technologies which have been proposed at hearings.
Additionally, because of constant rainfall and overall climate issues, there has been an obvious degradation of the services provided by the spectrum.
As such, the GT&T is asking for a higher spectrum allocation.
The PUC then queried that if a higher spectrum allocation were allowed, why would the company need to spend more money when the same problems would befall the new network, as the propagation characteristics would remain the same irrespective of technology used.
GT&T had, in its application, sought to reduce the rates for the outbound traffic, which competes with the other provider; and had also sought increases in several aspects of the landline service.
In the PUC’s perception, the company had wished to get the landline to pay increases, if ordered by the Commission, to offset the loss by the reduction of the outbound traffic, to compete with the other provider; which also offers the outbound service.
“If this is so, and the Commission acquiesces, then the interests of the consumers will fade into insignificance. This ought not to be, and the Commission must be alert to ensure that the scale is evenly balanced,” the PUC statement underscored.
Meanwhile, the Guyana Consumers Association (GCA), in its scrutiny, noted that it was improper for the GT&T to attempt to obtain rate increases comparable to those already granted to the Guyana Water Inc. (GWI) and the Guyana Power & Light Inc. (GPL).
The association then expounded on both companies, saying: GWI and GPL depend on the Government subsidies, and they offer rate reliefs to many aged consumers and pensioners.
The PUC then boldly highlighted: “GT&T, which has always been a profit (making) entity, ought to consider doing likewise!”
On the other hand, the PUC concluded that: “In view of all we have set out, we have difficulty in arriving at a decision favourable to GT&T or to any of the orders it now seeks; and in the circumstances, we dismiss the application. The Commission also wishes to inform that in view of doubts relating to the true value of GT&T’s asset base, it may consider having an investigation carried out in this regard”.
GT&T has, however, promised to provide a public response to the PUC’s denial of its rates increases application as soon as possible.
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