GTA disputes recent ARAA grant award to IT&E - KUAM.com-KUAM News: On Air. Online. On Demand.

GTA disputes recent ARAA grant award to IT&E

Posted: Updated:

by Nick Delgado

GUAM - GTA TeleGuam is raising serious concern over an $8 million broadband
stimulus grant recently awarded to IT&E. The company questions whether
the U.S. National Telecommunications and Information Administration
who's distributing the ARRA funds is making the best use of that
money, when some of the taxpayer funds are going for projects that
will compete with other private companies on island.

GTA Executive Vice President Dan Tydingco believes the issue could
result in adverse consequences for local consumers and businesses.

"A taxpayer-funded public overbuild of communications infrastructure on
Guam will jeopardize competition, risk current and new investments on
the island, and it will cost Guam the loss of good-paying telecom
jobs."

Furthermore, Tydingco says the broadband stimulus funding is unneeded
and inappropriate.

"Awarding limited taxpayer dollars in this manner is a perverse use of government resources. This will create publicly funded competition against private tax-paying companies like GTA
TeleGuam that has a long-standing deep and ongoing commitment to create new jobs and keep them on Guam."

GTA plans to present its argument to lawmakers both locally and in
Washington D.C.

IT&E meanwhile plans to use the grant to upgrade the broadband
Internet services it provides to Guam and the CNMI.

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