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Airtel-Vodafone has responded to the Guernsey Competition and Regulatory Authority instructing Sure to reduce its leased line prices, suggesting the effects will be ‘negligible’.
The GCRA has instructed Sure to reduce its wholesale broadband prices by 31%.
It is also reducing the telecom firm’s leased line prices to almost three quarters their current levels.
Sure has challenged the instructions from the GCRA, and you can read more about that HERE.
Meanwhile, in a statement Airtel-Vodafone said it “agrees with GCRA that the leased lines are key building blocks for businesses relying on telecommunications connectivity, as Airtel-Vodafone buys various leased lines from Sure to serve its customers to compete with Sure for the same customers, however, GCRA’s final decision on pricing of Wholesale On-Island Leased Line will result in negligible benefit for Airtel-Vodafone and its customers”.
“GCRA’s price review of Wholesale On-Island Leased Line did not create a ‘level playing field’ for all the possible backhaul options in Guernsey as it exists in other jurisdictions, e.g., UK, as GCRA was required to reduce pricing of on-island leased lines closer to the level of Microwave backhaul costs.
“The outcome of this GCRA’s price review exercise does very little to ease the cost of business connectivity in Guernsey. The GCRA’s final decision is a huge disabler to effectiveness and efficiency of competition in the island and is a massive setback to invest in newer technology such as 5G which is contingent on reasonably priced on-island leased line connectivity solutions.”
Additionally, the telecom company has also commented on the GCRA’s Wholesale Broadband Pricing decision.
“Whilst Airtel-Vodafone expresses its support for any reduction in wholesale broadband pricing, however, it still awaits an explanation from GCRA on how the proposed broadband's weighted average price will have an impact on specific broadband prices for different bandwidths respectively.
“Further, Airtel-Vodafone noted that the implementation of the new proposed pricing is slated for 1st April 2024, rather than the earlier suggested date of 1st January 2024.
“Despite the technological advancement in fibre broadband which eliminates the need for traditional copper telephone infrastructure (landline / WLR services), Airtel-Vodafone is disappointed to note that customers are still required to opt for WLR / landline services at a similar price before this price review, despite very low demand for WLR / landline services in Guernsey.”
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