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Sure/Airtel deal delayed

Sure/Airtel deal delayed

Tuesday 11 July 2023

Sure/Airtel deal delayed

Tuesday 11 July 2023


Guernsey's Economic Development Committee has done a u-turn on suspending the island's competition law so Sure's purchase of Airtel Vodafone could go ahead without regulatory approval, after concerns were raised in Jersey over the deal.

Last month, ED said that the law could be temporarily suspended to allow Sure to buy Airtel - which is owned by the New Dehli-based Bharti corporation - without official oversight from the Guernsey Competition and Regulatory Authority (GCRA).

Now ED has said the two telecoms firms need more time to focus on "developments in Jersey" before the deal can go ahead.

The States of Guernsey had said: “Guernsey’s Competition Law includes a mechanism that makes it possible for the States to agree to make a specific and time-limited exemption, as it recognises that there may be occasions when the Guernsey Competition and Regulatory Authority (GCRA) has concerns from a competition perspective, but when there are compelling wider benefits which mean the government might enable a transaction to take place."

ED published a Policy Letter asking approval from the Assembly to trigger the time-limited exemption, after Sure asked the States of Guernsey to review the proposed transaction. Now, ED President Deputy Neil Inder says they are defering that motion.

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Pictured: “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,” said Deputy Inder in June.

 

"The Committee for Economic Development is aware of the Jersey Competition Regulatory Authority’s provisional finding," he said. 

 

"This provisional finding will now be subject to a period of further consultation that extends beyond the States debate in Guernsey later this month, and it is clear to the Committee that Sure and Airtel will need to focus on these developments in Jersey. As such, the Committee will be deferring its policy letter on the acquisition pending the resolution of the process in Jersey."

Sure - which is headquartered in Guernsey but ultimately owned by Bahrain Telecommunications Company - made a raft of promises that would have been built into its licence with the GCRA. 

Those promises included a commitment to retaining Airtel’s Base plan for at least 36 months after the acquisition, and for the telecom provider to relinquish spectrum to make sure it doesn’t have an unfair advantage over any future competition.  

The telecom provider also said if the transaction is approved “Sure will invest up to £37million in Guernsey”. 

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Pictured: Mr Beak, CEO of Sure Group. 

Despite any deals agreed in Guernsey, the purchase needs regulatory approval in Jersey, where the Jersey Competition Regulatory Authority (JCRA) is still being used 

It hasn't announced its decision yet but it is thought likely the deal will be blocked in Jersey.

READ MORE…

Economic Development looking to bypass regulator for telecoms merger

Guernsey Sure-Airtel acquisition unclear as Jersey moves forward 

Sure planning to acquire Airtel-Vodafone


 

 

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