Chairman of majority state-owned TSTT, Emile Elias, said yesterday described as "legally flawed" the Request For Proposals (RFP) issued by the Telecommunications Authority of T&T (TATT) in 2014 for a third mobile licence.
Elias was responding to a report in the T&T Guardian yesterday in which managing director of Colombus Communications Trinidad, Brian Collins, called on TATT to name the successful applicant for the third mobile licence.
T&T currently has two licensed mobile operators–TSTT and Digicel.
Colombus Communications, which trades as Flow, has provided cable television and broadband Internet services in the region for 12 years. It was acquired by Cable & Wireless Communications (CWC) in March 2015 for US$1.85 billion plus accumulated debt and the resulting entity was purchased by US cable provider Liberty Global earlier this year.
Elias said T&T did not need a third mobile operator because the country already had about 2 million cellphones for a population of 1.3 million people.
"In addition, the RFP, which two years ago sought to invite applications for a third mobile operator, was legally flawed and cannot be the basis for the new government and the new board of TATT to act upon," said Elias.
He added senior counsel has advised TSTT, and had also advised TATT, that the RFP should be "scrapped" and that the third mobile operator licence should be "completely reconsidered as inappropriate for T&T."
The TSTT chairman said he had been told that a senior attorney had advised TATT almost two years ago that "the significant material changes in the proponents" of the third licence were grounds for the RFP to be scrapped. That advice was ignored by the last board and administration, he said.
Elias said: "We have always maintained at TSTT that it was completely wrong to commingle the third mobile operator licence, which was contained in the RFP, with a spectrum licence. It was an inappropriate commingling.
"What we want TATT to do is formally recognise that that RFP is illegal, inappropriate, of no consequence and that they cannot act on it. They should move towards the allocation of spectrum to the two existing mobile licensees without further delay."
The commingling was inappropriate, he said, because only new applicants would have requested both a third licence and spectrum (LTE 4G), whereas there were two existing applicants who only needed new spectrum.
According to Elias: "It was inappropriate also for CWC to be sitting in the boardroom of TSTT, as the 49 per cent shareholder, throughout the preparation of the response to the RFP and at the same time they were engaged in conversations to merge with a competitor, which was responding to the said RFP."
He said even if Flow and/or CWC received a third mobile licence, they have no infrastructure in T&T to support mobile subscribers.
Said Elias: "The infrastructure of TSTT is not available to them to implement any mobile operations. Zero infrastructure of TSTT is available to them."
Flow and CWC, according to Elias, are in no position to implement any kind of mobile operation as they have no infrastructure "and it would take them ten to 15 years" to put the appropriate infrastructure in place, given the difficulty of getting planning permission for new cellular towers.
Asked whether the telecommunications regulator, TATT, can force or prescribe the sharing of infrastructure between operators as a condition for the grant of spectrum, Elias said TSTT is meeting with its attorneys and intends to write to TATT on the several issues formally next week.
Describing TSTT renting out its infrastructure to a competitor as akin to cutting off the company's nose to spoil its face, Elias said: "I do not see that this new TATT board or the new Government would engage in that kind of activity, which is so self-destructive to a national company like TSTT."