© 2014 foley hoag llp. all rights reserved. new telecommunications legal framework modernization...

© 2014 Foley Hoag LLP. All Rights Reserved. New Telecommunications Legal Framework

MODERNIZATION AND LIBERALIZATION OF THE TELECOMMUNICATIONS SECTOR IN GUYANA

Presentation of the Draft Legal, Regulatory and Institutional Framework

Presented by:Janis H. Brennan

© 2014 Foley Hoag LLP. All Rights Reserved. New Telecommunications Legal Framework | 2

Outline

THE PROCESS OF TELECOMMUNICATIONS SECTOR REFORM– Timeline

– Government’s Goals for Sector Reform

THE NEW LEGAL, REGULATORY AND INSTITUTIONAL FRAMEWORK FOR THE TELECOMMUNICATIONS SECTOR IN GUYANA– Legal and Regulatory Framework

– Institutional Arrangements

– Licensing Provisions

– Prices

– Dominance and Joint Dominance

– Interconnection and Access

– Universal Access and Universal Services


Outline

THE NEW LEGAL, REGULATORY AND INSTITUTIONAL FRAMEWORK FOR THE TELECOMMUNICATIONS SECTOR IN GUYANA (cont.)

– Spectrum Management

– Terminal Equipment, Testing and Inspection

– Competitive Safeguards

– Consumer Protection

– Offenses and General Provisions

– Transitional Provisions


THE PROCESS OF TELECOMMUNICATIONS SECTOR

REFORM


The Process of Telecommunications Sector Reform in Guyana

Timeline

1990-1 • Telecommunications Act and Public Utilities Commission Act

• Establishment of GT&T and PUC• Sale of 80% of GT&T to ATN; Government retains 20%• Licence granted to GT&T under new Telecommunications

Act

1994 • WTO (Marrakech) Agreement on Trade in Services (GATS). Guyana makes telecommunications services commitment (on-line information and data base retrieval, a value added service)

1999 • Public Utilities Commission Act amended



Timeline

2000 • “Modernisation of the Telecommunications Sector” initiative launched by the Government

2001 • Government issues a “Consultation Paper on the Issues and Options for Reform of the Telecommunications Sector” and initiates a public consultation

• U Mobile (owned by Cel*Star) granted a cellular mobile license

2002 • Draft National Telecommunications Policy

2004 • U Mobile begins offering cellular mobile services in competition with GT&T

2006 • ICT for Development Strategy

2007 • Digicel acquires Cel*Star/U Mobile and begins to compete aggressively with GT&T



Timeline2009 • The EU and Caricom sign an EPA (Economic Partnership

Agreement) that commits Guyana to open telecommunications markets to European and Caribbean operators and service providers in many areas

• Work begins on comprehensive new legal framework for Guyana telecommunications sector

2010 • Government pursues “E-Government” project

• ATN (majority owner of GT&T) lays and brings new undersea cable into operation



Government’s Goals for Sector Reform

• Guyana’s full participation in the Information Society requires that all citizens have easy, affordable and ubiquitous access to telecommunications services

– Essential to national development; ICT’s own contribution, plus its role in support of other sectors

– Universally agreed that this is best achieved through a vibrant, open, competitive telecommunications market

– Need to expand service possibilities and offerings

• Reform process completed or actively underway in most other countries in the world including the Caribbean. As of today only The Bahamas, Guyana, and Haiti in the Caribbean have not taken significant steps to liberalize, or fully liberalized, their telecommunications markets



Government’s Goals for Sector Reform

• Much of the Telecommunications Act 1990 and even parts of PUC Act 1999 are outdated in light of the rapid technical and institutional changes in the telecommunications sector

– These Acts largely envision regulation of monopolies, not open, competitive markets, and contain inconsistencies

– There is a need to create a legal regime that will support an open, competitive telecommunications market with a level playing field for all market participants and that will regularize the existing market that has developed over time as technologies have developed


THE NEW LEGAL, REGULATORY AND INSTITUTIONAL FRAMEWORK FOR

THE TELECOMMUNICATIONS SECTOR IN GUYANA


The New Legal, Regulatory and Institutional Framework for the Telecommunications Sector in Guyana

Legal and Regulatory Framework

• Consists of:

A. The Telecommunications Act and harmonizing amendments to PUC Act

B. Regulationsi. Licensingii. Interconnection and Accessiii. Pricingiv. Universal Access and Universal Servicesv. Spectrum Managementvi. Competitive Safeguardsvii. Consumer Protection

C. New licenses and frequency authorisations to be issued under the new legislation to GT&T, Digicel and four existing ISPs – see section 93(6)(a) of draft Telecommunications Act

D. Model licenses and frequency authorisations

E. Telecommunications Code



Institutional Arrangements

• Minister

− Develops policy− Determines what types of networks and services require

licenses− Grants or denies applications for licenses and frequency

authorisations− Makes regulations− Oversees the new Telecommunications Agency (“Agency”)− Responsible for representing Guyana’s telecommunications

interests internationally




• Agency (technical regulator; headed by a Director)

− Implements the Minister’s policy directives− Receives, reviews, and makes recommendations on applications

for licenses and frequency authorisations− Advises and supports Minister on matters related to policy,

licenses, spectrum and international relations− Monitors and enforces compliance with licenses and frequency

authorisations− Manages the spectrum (plan, supervise, regulate, monitor

harmful interference) and other technical aspects of telecommunications including numbers

− Administers the Universality Fund and universal access/services program




• PUC (economic regulator)

−Regulates wholesale and retail prices for telecommunications networks and services

−Regulates interconnection and access−Regulates number portability and equal access−Enforces competitive safeguards−Resolves disputes involving operators and service providers−Protects consumers and resolves disputes between consumers and service providers



Licensing Provisions

• Guiding principles

− Public networks and services will have to be licenced; separate license, or license amendment, required to land and operate a cable

− No licenses will be required for networks/services used solely within a company and not being operated to provide public telecommunications services - Private networks and services

− Frequency authorisations will be required for the use of the spectrum and the operation of radiocommunication equipment except if exempted by order of the Minister (e.g., use by general public of wireless consumer products)




• Three types of licences under the new framework

− Individual licenses will be required to operate a public telecommunications network or provide public telecommunication services

− Class licenses may be authorized for certain public telecommunications networks and certain public telecommunications services as determined by the Minister (e.g., ISPs, Internet cafes, value-added services)

− Special licenses and related frequency authorisations will be permitted in emergencies and other exigent circumstances and for demonstration/testing and other short term situations; valid for 10-days; renewable for good cause




• Exemptions

− The Minister may exempt networks and services for a class or description of operators from requiring a licence; to be designated in orders

− Exemptions must be applied on a non-discriminatory basis and must be available for public scrutiny

• Dealer permits

− To be required for the sale or other transfer or programming or other modification of radiocommunication equipment – purpose is to monitor compliance with international standards, safety, and non-interference




• Terms and conditions of licenses and frequency authorisations

− No set limit on numbers

− Transparent and non-discriminatory terms and conditions; level playing field

− Agency recommends; Minister approves or denies application after public comment period

− Obligations attached to licenses and frequency authorisations include requirement to comply with Act, regulations, the Telecommunications Code and other relevant laws; restrictions on assignment, sale or transfer of ownership; requirement to pay fees

− Obligations attached to frequency authorisations: respect technical parameters of frequencies assigned; adhere to authorized frequency bands, etc.




• New Act contains provisions on:

− Suspension or termination of licenses and frequency authorisations

− Amendments to licenses and frequency authorizations

− Renewal of licenses and frequency authorisations




• Authorization to operate in territorial waters or airspace

− Provisions of Act, regulations and Telecommunications Code apply to all ships, aircraft and other vessels registered in Guyana and their use of the spectrum or radiocommunication equipment

− Not required for ships, aircraft and other vehicles not registered in Guyana while operating in the territorial waters and airspace of Guyana, so long as they have a valid frequency authorisation issued by a foreign governmental authority in accordance with international agreements (however, will be under the jurisdiction the Agency while in Guyana)



Licensing and Frequency Authorisation (Telecommunications) Regulations

• Lay out the general principles on licensing/frequency authorisations embodied in the Act

• Describe the requirements and procedure for applying for and obtaining licences, frequency authorisations, dealers’ permits and certificates of competence, and their adjudication, incl. time table

• Describe the roles of the Minister and the Agency in the licensing and frequency authorisation process.

• Provide criteria to be considered in deciding whether to grant or deny an application (e.g., applicant’s technical and operational qualifications, experience, ability to establish and bring the relevant network/services into operation within a defined time, the markets for the services, etc.)



Licensing and Frequency Authorisation (Telecommunications) Regulations

• Recognize that some licenses and frequency authorisations may be granted on the basis of a competitive process

• Include provisions on fees and the maintenance of a registry of all licences, frequency authorisations, permits and certificates

• Include provisions on offences and penalties

• Attach (in the Schedules) standard application forms for individual licences, class licences, special licences, exemptions and frequency authorisations

• Applicants, licencees and authorisation holders have an obligation to inform Agency of material changes in information included in application



Licences and Frequency Authorisations

• Principle characteristics

Not complex documents because Guyana will have a well-developed legal regime that clearly spells out the conditions under which licences and frequency authorisations are awarded and the attached obligations on operators, service providers and authorisation holders

Virtually the same for all types of operators and service providers

o transparency and non discrimination levels the playing field

Differences among licences and frequency authorisations arise only due to: o whether the licensee is an operator (i.e, networks) or a service

provider (i.e., services), or both

o the importance of the licensed activity to the development of telecommunications in Guyana (e.g., universal access/universal services obligations, dominance/joint dominance)



Licences and Frequency Authorisations

• New licences and frequency authorisations which will be awarded under the new regime (on the Effective Date of new Act)

– New GT&T licence and frequency authorisation to replace existing licence (1990) and various documents authorising GT&T to use spectrum

– New Digicel licence and frequency authorisation to replace existing 2001 licence and authorisation for Digicel to use spectrum

– Licences and frequency authorisations for four ISPs operating wireless broadband Internet access networks

– Model licences for the following types of operators and service providers: fixed network and services (PSTN), mobile networks and services, international services, domestic services, mobile services, value added services, and resale of services

– Model frequency authorisation



Prices

• Scope of application

− Public telecommunications networks and public telecommunications services (retail and, in limited circumstances, wholesale)

• Basic principles for regulating prices

– Prices are set by market participants on the basis of supply and demand

– Price regulation in cases of sole provider, dominance, anti-competitive cross-subsidization or other anti-competitive or unfair behaviour, other instances identified in Pricing Regulations



Prices

• Basic principles for regulating prices

− Within a framework designed to ensure:

o transparency, non-discrimination, fairness and provide certainty for consumers and market participants alike

o clarity of implementation by regulator, operators and service providers



Pricing (Telecommunications) Regulations

• Lay out and elaborate on the general principles governing prices in the Act

• Existing prices will remain in effect until changed in accordance with the Act and Regulations – Resets the legal regime

• Notice to the PUC before any price change is effected; PUC has 14 days to decide whether it wishes to regulate the price

• Yearly public education sessions to be held by PUC




• Regulation of prices limited to instances of sole provider of a network or service, dominance, and anti-competitive and other unfair behaviour

• PUC to identify markets for price regulation

• Price control

− First 3 years – Ceilings and floors

− After first 3 years, price caps – the preferred method worldwide because it provides a built-in incentive for the operator or service provider to become more efficient (sometimes combined with price floors)

− If fair and reasonable prices cannot be set using a price cap regime, the PUC may utilize rate of return (for retail prices) or retail minus (for wholesale prices) methodologies




• Detailed, internationally-accepted formulas for price caps and the other price control regimes are attached as Schedules to the Regulations – Provides predictability and stability

• Procedures for setting and reviewing price control regimes

• Offenses and penalties



Dominance and Joint Dominance

• In many instances, competition is best promoted by regulating only those telecommunications operators and service providers that are dominant (or jointly dominant), i.e., those operators and service providers that have the economic power (either alone or jointly with another operator/service provider) to influence the market without constraints from competitors, potential competitors, or consumers

• It is not necessary to place the same regulatory burden on operators and service providers who do not have the power to influence the market without those constraints




• Definition of “dominance”

– Where “a telecommunications undertaking, by itself or together with an affiliated telecommunications undertaking or group of affiliated telecommunications undertakings, occupies such a position of economic strength as will enable it to operate in such market without effective constraints from its competitors, potential competitors, consumers or other users”

– Consistent with definition of “dominance” in Competition and Fair Trading Act 2006, which in turn is consistent with Treaty of Chaguramas




• Definition of “joint dominance”

– Two or more telecommunications undertakings hold a jointly dominant position in any market where “those telecommunications undertakings jointly occupy such a position of economic strength as will enable them, individually or jointly, to operate in such market without effective constraints from their competitors, potential competitors, consumers or other users.”




• Concepts of “dominance” and “joint dominance” are implicated in the pricing, interconnection and access, and competition provisions of the Act and in the –

– Pricing (Telecommunications) Regulations Interconnection and Access (Telecommunications) Regulations– Competition (Telecommunications) Regulations

• Clarification that regulation of dominance, joint dominance and competition in the telecommunications sector rests with the PUC (not the Competition Commission under the Competition and Fair Trading Act 2006) – However, PUC standards are harmonized with Competition Commission standards, and two commissions are required to cooperate with one another



Interconnection and Access• Applies to:

1. Interconnection of public telecommunications networks

2. Access to facilities of telecommunications operators and service providers

3. Access to utility installations of other public utilities (e.g., GPL) and vice versa

4. Collocation of telecommunications facilities and public utility installations (e.g., utility poles, conduits, physical space in a telephone company’s switching centre, etc.)

• Interconnection and Access (Telecommunications) Regulations



Interconnection and Access

• Obligations on all operators, service providers and public utilities

– Must offer and provide interconnection and access on a non-discriminatory, timely basis to all other operators and service providers

– Must allow direct and indirect interconnection of other networks and services

– Must comply with regulations and with standards and prices established by PUC

– Must submit copies of interconnection and access agreements to PUC. PUC must make these publicly available

– PUC to resolve any disputes over interconnection and access




• Obligations on all operators, service providers and public utilities

– Must submit disputes to PUC for resolution and comply with its decisions; PUC can dictate terms of interconnection, access, joint use and collocation agreements if parties have not agreed to them within a specified time

– Must provide equal access to consumers using services of another service provider (equal access ability of consumer to freely choose among competing service providers)




• Prices for interconnection and access

– Access must be provided by all operators and service providers on a disaggregated and unbundled basis, e.g., prices must be based on what is actually involved in the access, not the entire network/services

– Dominant operators and services providers must also:

o provide access at cost-oriented prices

o provide interconnection at prices that are cost-oriented, disaggregated and unbundled



Interconnection and Access(Telecommunications) Regulations

• Regulations also define:

– Contents of Interconnection and Access Agreements

– Procedures (including timetables) for negotiating and implementing interconnection and access agreements

– Procedures for resolving disputes concerning interconnection, access, joint use and collocation



Universal Access and Universal Services

• Objectives

− Ensure access to telecommunications networks and services for all citizens irrespective of where they live or their income

− Contribute to the economic and social development of Guyana

− Promote information-based applications in education, health and other key public sectors

− Promote technology innovation and competition in the sector

− Carry out on a staged basis




• Universal access (Definition)

− The reasonable availability of telecommunications networks and telecommunications services on either a private or a shared, public basis to individuals and enterprises within a given community

• Universal services (Definition)

− The ubiquitous delivery, accessibility and affordability of telecommunications services to persons throughout a geographical area, with no practical impediments to subscription and usage




• General principles governing universal access and universal services

– To be identified and implemented in an objective, transparent, non discriminatory and technologically-neutral manner

– Projects will be eligible for subsidies from the Universality Fund

• Universal Access and Universal Services (Telecommunications) Regulations

– Comprehensive, dynamic framework for achieving universal access and universal services




• Universality Fund

− Fund for subsidizing the development, implementation and operation of universal access and universal services projects

− Source of funds:

• Annual contributions in a percentage (3% maximum) of gross annual revenues from each operator and service provider

• Appropriations from National Treasury• Other grants, donations, bequests, etc.

− Procedures for budgeting, accounting, awarding of subsidies, and auditing the Fund are described in the Regulations and administered by the Agency

− Competitive selection processes




• Identified Universal Services

− The minimum set of services of specified quality that should be made available to all users regardless of their geographical location, free or at an affordable price

− List initially to include:

1. Access to a high quality public telephone service (incl., free on-line or printed telephone directory and operator assisted directory enquiry and information services)

2. 24-hour free access to emergency telephone services

3. Special arrangements for the blind and other differently-abled persons




• Functions and Responsibilities

− Minister, in consultation with the Agency

o Determines networks and services to which requirement of universal access and universal services will apply

o Approves biennial plan of universal access and universal services projects

o Determines services to be included in the list of services and how they are to be provided

o Designates in a transparent and non-discriminatory manner one or more operators and service providers to provide services

o Issues orders directed to operators and service providers for provision of universal access and/or universal services




• Functions and Responsibilities

− Agency

o Consults with stakeholders and Fund Advisory Committee to identify and select projects intended to achieve objectives of universal access and universal services

o Develops, and submits for approval of the Minister, the biennial plan of projects eligible for subsidies from Universality Fund

o Advises the Minister on services to be included in or removed from the list of universal access/services

o Administers the Universality Fund and the universal access/services program

o Monitors performance of universal access and universal services obligations




•Functions and Responsibilities

– Fund Advisory Committeeo Membership:

Director of Agency (Chairman) and Deputy Director (Vice-Chair) Representatives of Ministries of Finance, Home Affairs, Labour,

Health, Education, Local Government/Regional Development, Amerindian Affairs

Representative of consumer advocate groups Representatives of operators and service providers

o Meets when required but at least twice a year

o Advises the Agency on projects to be included in biennial program of universal access and universal services projects



Spectrum Management

• General Principles

− Spectrum will be allocated and assigned to:

o Ensure its efficient useo Take into account the likely impact on current and future requirements

for spectrum in Guyanao Comply with Guyana’s international, regional, and bilateral obligations

− Two types of fees, established by the Agency:

o Authorization feeo Usage fee

− Agency will monitor harmful interference and may enter and inspect and order users to suspend operation of equipment causing interference



Spectrum Management

• Spectrum Plan (Allocation of frequencies)

− Established and maintained by the Agency subject to approval by the Minister

− Contains information, rules and procedures for allocating frequencies including:o Table of Frequency Allocationso Technical parameters of particular bands of frequencieso Procedures on assigning frequencies including length of term, termination,

authorization feeso Arrangements for visitors using radio transmitting deviceso Bands reserved for use by Government, Police and Defence Forceo Uses for which no authorization will be required (e.g., consumer products)o Bands reserved for shared and sole use



Spectrum Management

• Spectrum Plan (allocation of frequencies) – cont.

– Allocation and reallocation of frequencieso Agency, with Minister’s approval, may allocate and reallocate

frequencieso May amend frequency authorisations when frequencies are

reallocated

• Assignment (authorization of use) of frequencieso Procedures and fees determined by Agency (with approval of

Minister)o Methods: auctions, tenders, fixed prices, first come first served or

on the basis of stated criteria

• Spectrum Management Regulationso Contain detailed provisions on all of the above points, plus

offenses and further enforcement powers



Terminal Equipment and Facilities Equipment

• General Principles− Terminal Equipment (CPE) Any equipment on user’s side of a

telecommunications connection (e.g., computers, mobile phones)

o Agency certification required - type approvals from other jurisdictions may be utilized

o Users (including consumers) will have an obligation to install only safe and compatible equipment

− Facilities Equipment Equipment that is part of a telecommunications network, i.e., the operator’s side of the telecommunications connection

o Agency may institute certification (including testing) programo May also recognize type approvals from other jurisdictionso Agency may also establish technical standards



Competitive Safeguards

• General principles

− Important for defining type of market power that can, and type of conduct that does, undermine competition in telecommunications

− Safeguards are built into the draft Telecommunications Act - PUC can regulate prices to consumers and prices for interconnection and access in instances of:

o Only one operator operating a telecommunications network or service provider providing a telecommunications service

o Dominant and jointly dominant operators and service providers

o Anti-competitive cross-subsidization and other anti-competitive pricing or acts of unfair competition




• General principles− Competition and Fair Trading Act already contemplates that the PUC

will regulate competition in areas under its authority (telecommunications, electricity, water), but language is vague

• Solution− Amend Competition and Fair Trading Act to clarify that PUC will regulate

all matters of competition in areas under its authority, but require Competition Commission to share any information it obtains on dominance and anti-competitive conduct in telecommunications

• Advantages− Determinations of dominance and anti-competitive conduct, and

resulting price regulation, will reside with one regulator, which would also have expertise in economic regulation of telecommunications sector




• Competition (Telecommunications) Regulations

− Based upon the structure of the Competition and Fair Trading Act 2006, but provisions are specific to telecommunications

− Take into account Guyana’s obligations under Chapter Eight, Part One of the Revised Treaty of Chaguaramas (as does the Competition and Fair Trading Act)

− Per the legislative regime, PUC regulates competition in the Guyana telecommunications sector, and cooperates with the Community Competition Commission in the manner required by the Treaty

− Concepts of dominance and joint dominance defined




• PUC determines dominance and joint dominance

− The Minister may also designate an operator or service provider as dominant or jointly dominant in a license, but subject to later PUC review, if the operator or service provider believes it has lost its dominance/joint dominance




• Two basic prohibitions: Anti-competitive conduct and abuse of a dominant/jointly dominant position

− Regulations provide detailed lists of what type of conduct is anti-competitive/abuse of dominant position

− Detailed procedures for determining whether prohibited conduct has occurred

− PUC may allow opportunity to cure abuse of a dominant position




• Fines: Where PUC finds prohibited conduct has occurred, must impose monetary penalties

− Between G$2 and 20 million, depending upon nature/extent of violation (including extent to which contrary to welfare/interests of consumers), circumstances of violation, and whether violation was a “repeat offense”

− Fines used to compensate consumers who file applications with the PUC and are adjudicated to have been harmed




• Negative clearance rulings and prior authorizations

− Negative clearance rulings. Prior to engaging in any conduct that it fears might be interpreted as anti-competitive or abuse of a dominant position, a telecommunications undertaking may ask the PUC to rule on the conduct; if ruled not anti-competitive/not an abuse of a dominant position, telecommunications undertaking may engage in conduct but strictly under terms cleared by the PUC

− Prior authorizations. PUC may authorize conduct that would otherwise be prohibited if conduct would be of “significant public benefit.” Strict compliance with terms of prior authorization is required.




• Community Competition Commission (“CCC”)

− Per Treaty, PUC may ask CCC to investigate conduct in another Member State that prejudices trade or prevents, restricts or distorts competition in Guyana

− PUC must undertake investigations when requested by the CCC, and report findings:

o Differences of opinion on nature/effect of conduct and on jurisdiction must be referred to the Council for Trade and Economic Development, COTED (per Treaty)

− Determinations of the CCC to be registered in High Court and enforced in the same manner as a judgment



Consumer Protection

• Provisions in new framework

− Consumer protections are built into the new Telecommunications Act in a number of places, e.g., confidentiality of consumer information, competitive safeguards, "fair and reasonable" prices to consumers



Consumer Protection (Telecommunications)Regulations

• Elaborate on provisions on confidentiality of consumer/other user information in the Act:

– Only employees, etc. with a legitimate “need to know” consumer information may have access

– Required confidentiality agreements with employees, contractors, representatives, agents, etc., which must survive termination of employment, contracts, etc.

– Telecommunications undertakings that provide services to consumers must develop and publish a formal Privacy Policy




• Quality of service standards (e.g., time within which service provider must make initial connections, answer operator assistance and directory inquiry calls, solve service problems, correct billing errors)

− Most modern telecommunications regimes, including regimes in the Caribbean, have quality of service standards, but none are in place in Guyana

− Regulations seek to “jump start” process, by establishing (in a Schedule) basic quality of service requirements




• Quality of service standards

– Minister, after consultation with PUC, may amend Schedules by order, to amend existing requirements and add new ones (but without requiring major capital investment)

– PUC required to commence exercise to identify additional quality of service standards to recommend to the Minister

– Service providers may institute higher quality of service standards for their consumers

– Service providers must maintain records of compliance and report to PUC

– Penalties for failure to achieve quality of service standards, to be allocated to consumer accounts under PUC supervision




• Consumer Code of Practice

– Regulations contain minimum standards for relations between service providers and consumers – a General Consumer Code

– A service provider may institute an individual consumer code, but it must contain the minimum standards – PUC approval required




• General Consumer Code contains provision on:

– Information that must be supplied to consumers prior to provision of telecommunications services

– Content of service contracts and other terms and conditions of service

– Operator and directory assistance; telephone directories; emergency services

– Services to the differently-abled

– Advertising standards




• General Consumer Code contains provisions on:

– Billing requirements and procedures

– Security deposits

– Handling of consumer complaints

– Service providers’ compliance with the Consumer Code – monitored by PUC

• PUC may fine service providers who fail to comply and order them to take steps to remedy

• Fines to be credited to consumer accounts, as ordered by PUC – PUC continued supervision of compliance



Offenses

• Provisions in new Telecommunications Act

− Includes offenses and corresponding fines and other penalties for contravention of major provisions of the Act

− Existing penalties in PUCA have already been increased, in context of recent electricity sector project

− Agency and Commission authorized to levy fines on persons who contravene Act and regulations

− Regulations include additional fines and penalties for violations of obligations in them



General Provisions

• Minister may take any action deemed appropriate regarding telecommunications networks/services operated/provided from outside Guyana, if they compete unfairly or otherwise jeopardize networks/ services provided inside Guyana or between Guyana/another country, or are contrary to public interest, national security or public order

• Where required by national security, public order or a state of emergency, President or Minister may take control of telecommunications networks/services



General Provisions

• Specified areas in which Minister may issue regulations under the Act

• “No alteration” of Interception of Communications Act 2008 or copyright

• Non-applicability of Act:o Broadcasting, including broadcasting contento Government, Guyana Defense Force, Police and civil aviation

authorities, except for requirement that they obtain frequency authorisations



Transitional Provisions• Purpose

– Provide for an orderly transition from the existing legal regime to the new one

– Amend some existing laws to harmonize with the new Telecommunications Act (e.g., Competition and Fair Trading Act, Post and Telegraph Act)

– Repeal of Guyana National Frequency Management Unit Order 1990, which established the NFMU, and transfer all NFMU assets, contracts, liabilities, etc. to the Agency – employees not transferred, but may apply with Agency

– Repeal of Telecommunications Act 1990 and provisions of the Post and Telegraph Act, under which permits to use the spectrum have been issued, to apply only to broadcasting



Transitional Provisions

– Issuance of new licenses and frequency authorisations to GT&T, Digicel and ISPs under new Telecommunications Act, on same date that Act becomes effective – existing GT&T and Digicel licenses cancelled

– Savings of any other licenses and spectrum use permits issued under old legal regime, but require persons holding such licenses and permits to apply for new ones under the new Telecommunications Act within a specified period after it goes into effect (90 days)

– Savings of current NFMU fee tables and frequency allocation tables, until such time as replaced by new fee requirements and a Spectrum Plan under the new legislation



Amendments to Public UtilitiesCommission Act

• Amendments required to harmonize with Telecommunications Act (without disturbing existing harmonization with Electricity Sector Reform Act and any other laws governing “public utilities” under PUC’s jurisdiction)

• “Telecommunications undertakings” (i.e., any entity subject to the new Telecommunications Act and regulations) are removed from provisions of the PUCA dealing with topics covered in sector-specific Telecommunications Act/regulations, including rate setting provisions, quality of service, development and expansion programs, pre-approval of issuance of securities (shares, debt instruments, etc.), Prescription of accounting practices

• Amendment of annual fee amount to lesser of 1% of gross revenues or G$100M (will now be the same for electricity and telecommunications)

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