In 1990, the then government, desperate for foreign exchange, sold the state telephone company on 'generous' terms.

The deal handed 80% of the Guyana Telephone and Telegraph Company (GT+T) to the USVI-based Atlantic-Tele-Network at a cost of US$20 million.

The deal was further sweetened with a monopoly on international traffic to and from Guyana, along with an exemption from withholding tax and other concessions.

The Peoples Progressive Party-Civic administration now wants to sell its 20% stake as it seeks to quicken the pace the telecoms liberalisation in Guyana.

The only area of the market to see competition so far has been in the mobile sector.

Dividends

In May, Digicel, which launched services in February 2007, filed a lawsuit against the government to challenge GT+T's monopoly on international voice and data.

In a mid-October debate in Parliament, Prime Minister Sam Hinds said the purchase agreement had put "a bitter taste" in his mouth.

But he said the improved financial position of GT&T had left him conflicted because he also wanted to see the monopoly ended.

The company only began paying dividends to the government - on its 20% share - 11 years after the initial agreement.

	The government wants to expand ICT access

The opposition Peoples National Congress (PNC), which negotiated the deal when in power, prefers government to keep its shares and tried to stop the sell-off.

Opposition MP and former industry minister Winston Murray pleaded for understanding over the terms which came when Guyana was opening up to foreign investment after years of socialist rule.

'Acceptable quality'

He said: "It proved extremely difficult to woo investors to Guyana and indeed, it could be argued ... that we were extremely liberal over the terms and conditions under which we privatised."

Mr Murray urged people "not to judge us so harshly", saying the administration had laid the basis for the modern private sector.

Finance Minister Ashni Singh has defended the divestment plan.

"It is not the 20% ownership in GT+T that is prohibiting other operators," he said.

"It is in fact the monopoly that was granted ... we in Guyana are yet to experience the tremendous boost to our economy that can be realised in an environment where telecommunications services are available to all Guyanese at an acceptable quality and affordable rate."

The Digicel lawsuit is considered part of its effort to force further liberalisation.

Blackout

The government plans to sell its shares and use the money to build its own fibre optic cable and buy computers as part of an information communications technology drive.

In 2007, Guyana's only undersea cable connection to the outside world suffered temporary damage, leaving the country in a blackout.

Plans have since been announced for more capacity but the episode left the country feeling vulnerable.