Select a region
The JCRA has approved the Sure/Airtel merger in Jersey, bringing the deal one step closer to completion.
However, the future merger is still dependent on approval in Guernsey, which is a political decision here rather than a regulatory one.
While the merger is being regulated by the JCRA (Jersey Competition and Regulatory Authority) in Jersey, the deal would have to be signed off in a different way in Guernsey.
Economic Development published a policy letter last year that sought political support to bypass the law. The Committee argued that the economic benefit of the deal outweighed any competition concerns.
The JCRA has approved the merger under several conditions:
A new Mobile Virtual Network Operator (MVNO), the Channel Islands Co-operative Society (the Coop). The Co-op, using Sure’s network, should have the ability to compete independently for consumers on retail prices; and
Sure will not withdraw any Sure and Airtel tariffs that are active as at the date of clearance of the merger. This is designed to protect today’s prices for consumers for the 36 months following completion of the transaction, after which time the Co-op should be fully established and 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.”
The approval has been welcomed by Sure’s Group CEO, Alistair Beakr, who has released the following statement:
“Today’s announcement is great news and a key step towards restructuring the way telecommunications are provided across the Channel Islands which will result in greater investment and improved services, laying the foundation for an increasingly digital future.
“If approval of the acquisition is also granted in Guernsey, then we will embark on a very significant investment of up to £48m in a new mobile network, bringing the very best 5G technology to the Channel Islands. Customers will benefit from faster data speeds, wider coverage, greater value for money and a more resilient and secure mobile network to perfectly complement fibre broadband.
“Importantly the JCRA has recognised that ‘the outcome will protect consumers and ensure healthy competition’ as a result ofSure’s legally binding promises. These, along with the continuation of tariffs and pricing, have been strengthened by the announcement in May of our agreement with the Channel Islands Coop to launch a virtual mobile network, meaning customers will continue to have the choice of three operators.
“The new 5G network will futureproof the island, enable our increasingly digital lives, and contribute to future economic growth.
“While today’s news is welcome, the transaction and its many benefits will only be realised if approval is secured from the Guernsey authorities, which is the final remaining element to the acquisition proceeding.”
Express has asked for comment from Economic Development.
Sure/Airtel merger discussions continue, as potential new mobile service revealed
Comments
Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.