GTA Teleguam Blasts CompetitorAsia, Broadband Stimulus, International August 3rd, 2010
BroadbandBreakfast.com Staff, BroadbandBreakfast.com
WASHINGTON, August 3, 2010 – In a press release distributed last week, Guam area telecom company GTA Teleguam quoted an Federal Communications Commission report in an attempt to attack their competitor IT&E. The report argued that Federal regulators had failed at ensuring that stimulus funds were distributed only to areas where genuine need was demonstrated, rather than to companies that had already established universal access and were attempting to create new excuses to gain further subsidies.
IT&E has proposed a project costing an additional $89 million in stimulus funds from the Federal government, a project which IT&E claims would benefit the Northern Marianas. However, GTA argues that the grant would be wasted.
“The latest and most comprehensive report shows no unserved areas in Guam,” according to GTA.
For its part, GTA has invested more than $75 million since the government of Guam privatized the company in January 2005, and plans another $10 million investment for 2010. These investments would likely face competition from IT&E if the federal subsidy were extended.
A decision is expected on the additional stimulus funds on September 30th.