Home News GTT’s application for increase in bundled landline rates denied – PUC
Just a few weeks ago, the Public Utilities Commission (PUC) approved rates for GTT’s call-blocking feature; however, on Wednesday it denied an application made by the telecommunications giant to increase a number of landline charges.
According to the PUC, the company applied for the increase in landline charges from $750 to $800 for each household on October 1, 2018.
The application further noted that the charges could go up to $1600 for two or more lines.
Further, businesses would have to pay $2500 monthly for up to four lines as opposed to the current payments of $2250 monthly.
The company also wanted approval of five residential bundled services that relate exclusively to the landline service, including an all-inclusive (intra and inter), access for $6500 per month with call forwarding, voicemail and call waiting, and an unlimited friend-and-family call bundle for five persons for $1850.
After reviewing the application, the PUC, along with the Guyana Consumers Association, objected to the increase, stating that GTT did not present a convincing case for the application of an increase.
The PUC said that it was not convinced that the expenses accurately reflect a cost-efficient utility, taking into consideration the size and the scope of the operations of the company, and whether the values of the non-current assets as stated in the company’s financial statement were acquired at market value at the time of acquisition.
The PUC said also that the company has purportedly invested heavily in non-current assets for more than a decade, but same was not reflected in expected profit progression or in the quality of the company’s services to its customers.
GTT has been applying for a number of tariff increases recently as Guyana prepares for the liberalisation of the telecoms sectors to allow new investors. The Guyana Consumers Association has, however, been insisting that GTT has not been investing as it should.
Already, GTT has been approved to institute new tariffs for landlines.