Telco deal to go straight to States for approval

Regulators were concerned about the anti-competitive nature of the deal, agreed between the two telecoms operators last year, but Economic Development wants the deal to go ahead and has agreed to take it direct to the States, possibly next month, seeking to suspend the island’s competition law to allow it to do so.

Economic Development said it had engaged extensively with the Guernsey Competition Regulatory Authority, arguing that the acquisition would ensure millions in extra investment from Sure that would benefit the island as a whole.

Committee president Neil Inder said that the merger would create binding commitments on Sure’s infrastructure improvements, and would lead to Airtel exiting the market in an orderly fashion, 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.’

But the Guernsey Competition and Regulatory Authority said that under normal circumstances, the transaction would receive its approval only if it was satisfied that it would not reduce competition in the island.

‘Mergers may lead to a significant reduction in competition between businesses, which can be harmful to consumers and to the economy,’ it said.

Sure initiated the move, applying directly to the States to approve the acquisition of Airtel.

Sure Group CEO Alistair Beak said that if approved by the States, Sure would be able to facilitate fair competition.

‘If our acquisition of Airtel is approved by the States of Guernsey then we’re looking at a game-changer for connectivity,’ he said.

‘We are hopeful that the States will see the significant benefits of this transaction and look forward to meeting as many deputies as possible and answering their questions later in June.’

Sure will invest up to £37m. in Guernsey to build a next-generation 5G mobile network with high-speed data services, improved coverage, and increased download speeds – but only if the transaction is approved.

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 has concerns from a competition perspective, but when there are compelling wider benefits which mean the government might enable a transaction to take place.

The acquisition also needs regulatory approval in Jersey to go forward. The process in Jersey is being managed by the Jersey Competition Regulatory Authority.