Regulator seeks public view on telephone price controls
IMPOSING price controls for fixed-line phone services for three years and reducing retail prices in Jersey to bring costs in line with Guernsey are recommendations out for consultation today.
The Channel Islands Competition and Regulatory Authorities is seeking views on the retail price controls currently in place for Sure in Guernsey for fixed-line services such as calls and exchange lines.
It said price controls were used by regulators in markets where there was limited competition, as had historically been the case with fixed-line services in Guernsey, to ensure that prices to customers were appropriate.
Cicra worked with consultants Frontier Economics to determine whether continued price controls were justified and, if so, to assist in determining what those should be.
As part of the process the prices Sure currently charges for fixed-line services were benchmarked against comparable jurisdictions, to assess whether the company's pricing levels were justified.
It found Sure's charges were 33% lower than JT's in Jersey.
As a result, Cicra has proposed applying an RPI -0% price control for Sure and an RPI -10% price control for JT.
The proposed duration of the controls has been set at three years.
