GTA TeleGuam: How Can Stimulus Funding Help Guam, Not Hurt Competition

Company responds to new attack by IT&E on controversy over $89 million applications

TAMUNING, Guam--(BUSINESS WIRE)-- GTA TeleGuam Thursday issued the following statement in response to new attacks by IT&E over the merit of an $89.7 million funding request to build duplicate network infrastructure on Guam. The statement can be attributed to Daniel J. Tydingco, executive vice president of external affairs for GTA TeleGuam:

“It is time for the new IT&E to come clean with the people of Guam, its customers on the island, and local government officials over what truly drives their request for federal taxpayer funding to duplicate communications infrastructures on the island.

“This isn’t a dispute between two companies. This is a debate over principles on the best use of limited federal taxpayer dollars intended for places whose infrastructure is lagging or truly in need. At stake is Guam’s ability to maintain a strong, healthy competitive telecom landscape on the island. The community’s best interests should not take a back seat to one company that wants free money for itself to unfairly compete.

“Facts will ultimately prove that Guam isn’t one of those places in dire need of new communications infrastructure.

“The ink was not quite dry on IT&E public statement that it would no longer respond to questions about its $89.7 million grant application before it launched into a misdirected attack on GTA TeleGuam’s intentions. IT&E should be talking about the merits of its applications and its service track record as the dominant carrier in the CNMI rather than attacking GTA TeleGuam for questioning the use of taxpayer dollars on Guam.

“Here’s where they can start. How much of the $89.7 million, plus the previous $8 million, will be used in CNMI and Guam? Which community anchor institutions on Guam are deprived from access to high-capacity broadband? What “new” services does IT&E plan to provide through this grant? Why has IT&E not offered these services in the past, if they perceive such a need? Who will subsidize “free” service to selected customers when the money runs out?

"Why does a basic T-1 connection (1.5 Mbps) between Guam and CNMI over the only submarine cable between these areas and 100% owned by IT&E cost about $6,000 a month? This is the cost for 100 times this amount of bandwidth from Guam to the mainland. Why does DSL access cost three to four times less on Guam than in Saipan? How do you maintain a level competitive playing field that history has proven time and again is the best way to keep down costs, spur innovation, and get companies off their butt to improve their service levels? Why does anyone want to undo the successful results from privatization just five years ago?

“With a complete understanding of the facts on the ground versus accepting endorsement statements at face value, government officials at the local and federal levels can be in a better position of fully assessing needs and dispensing funds where appropriate. There should be safeguards in place to avoid tilting the competitive playing field in favor of a single private company, whose service record and reputation in the region raise more questions.

“The bottom line is simple: IT&E wants to profit from the growth potential that Guam offers. But it does not want to solely and completely put skin in the game as other competitors have done. They want a free taxpayer handout. If they see growth potential on Guam, as is obvious by the size of their applications, they should be going back to their private investors for funding support not to the taxpayers. Through open and fair competition, everyone benefits.

“To be clear: GTA TeleGuam objects to the use of federal taxpayer money to duplicate communications networks on Guam and tilt the competitive playing field in favor of a single private company. This is a formula for disaster that will ultimately hurt communications consumers in the form of higher rates, slower innovation, and poor customer service.

“The national broadband stimulus program can be a powerful mechanism for economic growth and expansion across the United States. Taxpayers and government officials have a solemn responsibility to help ensure the money goes to the right places and for the right projects.

“GTA has no hesitation or reservation in supporting the CNMI, where need is apparent, in securing all the stimulus funds they may need for their communities. We suggest that a request be made to the NTIA to sever their needs from those of Guam. We would strongly encourage that so competition can flourish there for the benefit of their residents and they can be served without adverse impact to Guam’s thriving landscape.”

About GTA TeleGuam

GTA TeleGuam provides complete communications services on Guam. These include local and long-distance telephone service, 3G wireless, DSL Internet access, and advanced digital television, or IPTV. The company also operates a data center on Guam for offering business data storage and managed wide area networking. Based in Tamuning, Guam, GTA TeleGuam is privately owned and locally managed. Shamrock Capital Advisors, a California-based private equity firm founded as the Roy E. Disney Family investment company, and GE provide financial backing to GTA TeleGuam. The company’s website is www.gta.net. Phone: 1-671-644-4482.

CONTACT:

Media Contact:
GTA TeleGuam
Cora Yanger Bejado
1-671-644-0106 (o)
1-671-488-2672 (m)
cora@gta.net

KEYWORDS:   United States  North America  Australia/Oceania  District of Columbia  Guam

INDUSTRY KEYWORDS:   Technology  Consumer Electronics  Hardware  Internet  Networks  Audio/Video  Telecommunications  Other Technology  VoIP

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