ATN International, Inc. (ATNI), the parent company of the Guyana Telephone and Telegraph (GTT) has informed the United States Securities and Exchange Commission (SEC) in its latest financial report (February this year) that its operations here are threatened by significant “political and regulatory risk.” The American conglomerate told the independent market regulator that the Guyana Government has not been handling the regulation of the sector in a fair manner and it does not have the confidence that new pieces of legislation would be properly enforced on all actors.
Expounding on this front, ATN recalled that on October 5, 2020, the Prime Minister of Guyana, Brigadier (Retd.) Mark Phillips, formally implemented the Telecommunications legislation previously passed by the Parliament in 2016. The Act introduces material changes to many features of the existing telecommunications regulatory regime with the intention of creating a more competitive market.
At that time, ATN said it was issued a new licence to provide domestic and international voice as well as data services and mobile services in Guyana. The US company said two of its competitors, who had previously provided fixed voice and internet services on an unlicensed basis, were issued service licenses as well. While it has requested details of its competitors’ licenses, ATN said such information has not been made public by the Guyana Telecommunications Agency. In the meantime, the company said its competitors are openly providing services that are competitive with GTT’s exclusive rights contained in its 1990 licence.
On October 23, 2020, ATN also recalled that the government brought into effect new telecommunications regulations which include requirements that impact its operations, administrative reporting, and services. Given all that has transpired over the years, ATN said it therefore does not have confidence that the regulations would be implemented by the State in a fair manner.
It said, “There can be no assurance that these regulations will be effectively implemented, or that they will be administered in a fair and transparent manner. We believe our existing, exclusive license continues to be valid unless and until such time as we enter into an alternative arrangement with the Government.”
“Under these circumstances, however, there can be no assurance that our discussions with the Government of Guyana will resume or be concluded, or that such discussions will satisfactorily address our contractual exclusivity rights. While we might seek damages or other compensation for any involuntary termination of our contractual exclusivity rights, we cannot guarantee that we would prevail in any proceedings to enforce our rights.”
With the government liberalizing the sector, ATN told the SEC and its shareholders that Guyana remains a high-risk environment due to political and judicial uncertainty while adding that there can be no assurances that the government can achieve reform in ways that are fairly applied.
Since 1991, pursuant to an agreement with the Government of Guyana, GTT has operated as the exclusive provider of domestic and international voice and data services. That license included an initial term ending in December 2010, which was renewable at the conglomerate’s sole option for an additional 20-year term. In November 2009, it notified the government of its election to renew for an additional 20-year term expiring in 2030.
