Telecom
Who Will Control Guam's Cyberspace?
Internet Firms Irked By Gov-Guam Agency's Speedy Service
The speed of telecommunication through the Internet, which only a year ago on Guam was measured in kilobytes per second, is now being clocked in megabytes with each tick of the clock now that faster speeds are being brought to this island — which will soon mean that other islands in this region will follow suit.
The introduction, however, of Digital Subscriber Line (DSL), which was launched on Guam on Dec. 2 by the government-owned Guam Telephone Authority (GTA) has hit a major roadblock. The new speedy service, which utilizes extended broadband technology up to 50 times faster than traditional dial-up service, is now entangled in a court battle. Three privately owned companies are crying foul because they say that because GTA can use taxpayer money, the new service could drive them out of business.
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The issue came to a head when a locally owned company, Kuentos Communications, which has merged with the islands sole cable TV provider, Marianas CableVision, was joined last December by GUAMCELL Communications and IT&E Overseas Inc. as plaintiffs in a lawsuit asking a Superior Court judge to issue a temporary restraining order stopping GTA from supplying and selling Internet access services.
Each of the private companies offer Internet Service Provider or ISP services, while Kuentos is said to be readying a cable modem alternative that company officials say will rival that of GTA’s DSL service. Cable modem service is currently available throughout the U.S. and other high-tech countries.
The plaintiffs in the case contend that while GTA is allowed under Guam law to provide telephone services, a move into the Internet arena goes beyond the agency’s legal authority. The government telephone agency’s spending on a new Internet venture, according to court documents filed by plaintiffs, "constitutes an illegal expenditure of funds for private enterprise."
GTA began laying groundwork for the DSL service in response to the growing demand for faster speed and to make it more attractive to buyers as it nears privatization. GTA was supposed to be sold by the end of last year but that may not happen until later this summer, according to former chairwoman of the legislative telecommunications committee, Sen. Carlotta Leon Guerrero.
During a January hearing before Superior Court Judge Frances Tydingco-Gatewood, attorney for GTA Randall Cunliffe stated that the phone company’s spending is not an issue for taxpayers because it is rate-payers money that is being used to upgrade services which GTA provides. Attorney for the plaintiffs, Robert Torres, countered by saying that GTA’s new division, Guamtel.net, is not an essential service and the use of public funds to subsidize it constitutes illegal spending of public money.
The plaintiffs also claim that because of GTA’s advantage of being a government entity — which includes its tax-free status and resources — will force them out of business over time.
Tydingco-Gatewood refused to issue a temporary restraining order and took the case under advisement with a decision to be rendered in the future. GTA General Manager Vince Arriola said that DSL service took about a year to prepare at a cost of approximately $5 million.
