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Economic Development are taking a second stab at trying to approve the Sure/Airtel merger without the assessment of Guernsey’s competition regulator.
The Committe had wanted to ask the States to bypass the Guernsey Competition & Regulatory Authority and approve the deal last year, but the matter was pulled after the Jersey’s competition regulator rejected the acquisition.
But now, just weeks after the deal was reconsidered and approved in Jersey with conditions, Economic Development are again bringing plans for a time-limited exemption to competition law to the Assembly to get the deal over the line for all the Channel Islands.
It’s again saying the deal is justified as it will result in benefits for consumers and the islands through large investments into the network and services.
For consumers, it argues choice will be maintained in the islands through the introduction of The Co-op as a virtual mobile operator which will use Sure’s network but will set prices independently.
The deal also commits Sure to invest £35m in the network, with over £17.3m being invested in Guernsey, and requires it to set up a 5G network.
Deputy Neil Inder, Economic Development President, assured that the conditions placed on Sure are “binding commitments on that investment”.
Pictured: Deputy Neil Inder.
“If the States approves the exemption, it will mean that Airtel exits the market in an orderly way with consumer protection and competition conditions in place. The commitments from Sure secure the best possible outcomes for consumers and guarantees large-scale investment in Guernsey,” he said.
“The Competition Law includes a mechanism for the States to provide an exemption exactly for this kind of scenario, where the wider economic benefits outweigh any concerns around the impact on competition within the market.
“The Committee also welcomes the Co-op’s entry into the market, subject to the approval and completion of the transaction. It is a very positive outcome for competition and for consumers and is a positive endorsement of Guernsey’s overall business environment.”
The Jersey Competition & Regulatory Authority also conditioned Sure to not withdraw any tariffs that are active on the date of the merger for 36 months to allow the Co-op time to set up its service and begin competing with Sure and JT.
“This process has been vital for Jersey and we are confident the outcome will protect consumers and ensure healthy competition in what is a very important market for Jersey,” said Tim Ringsdore, CEO of the JCRA.
“Our objective is to promote and encourage fair competition in Jersey because it encourages businesses to improve and innovate to ‘win’ customers. For consumers, this can result in better quality products and services, more choice and fair prices.”
Only Deputy Steve Falla, Vice-President of Economic Development, voted against the rest of his committee in proposing the exemption to the States, which will debate the policy letter at the end of September.
Alistair Beak, Sure Group CEO, commented: “Everything we do today, from education to business to connecting with each other, is built on a foundation of high-speed, reliable networks, and Sure’s proposed acquisition of Airtel will support islanders’ increasingly digital lives and contribute to economic growth.
“The legally binding commitments to invest and transform telecommunications and put in place enhanced consumer protections will ensure Guernsey will have world class digital infrastructure and services for the future. We are hopeful that Deputies will recognise these benefits and are looking forward to engaging with as many of them as possible to answer any questions they might have.”
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