Jersey ruling forces Sure/Airtel climbdown

It wants to withdraw its proposals for a temporary change to the law after the Jersey Competition Regulatory Authority revealed that it was likely to block the takeover in Jersey.

Economic Development president Deputy Neil Inder announced the climbdown late yesterday, just over a week before the proposals were due to be debated by the States.

‘The committee is aware of the JCRA’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.’

Economic Development published proposals on 19 June which asked the States to agree to a temporary and limited exemption to competition laws after the Guernsey Competition Regulatory Authority told the committee it was unlikely to approve the merger of the telecoms companies because of concerns about lack of competition.

At the time it claimed there were ‘good reasons of public policy to enable the transaction to take place’. It said these included ‘network quality, enhanced network security, reduced environmental impact and positive impacts on the economy in terms of further and sustained investment by Sure in Guernsey’.

But the States of Jersey has so far avoided similar intervention, leaving the proposed takeover to the island’s regulator, which has now published its provisional findings.

‘The JCRA has determined the proposed transaction is likely to give rise to substantial lessening of competition and so is minded to exercise its power... by refusing to approve the proposed transaction,’ it said.

Economic Development’s proposals to the States mentioned ‘binding commitments from Sure which address the potential for a substantial lessening of competition’. The JCRA said it looked into Sure’s commitments thoroughly before concluding that the takeover should be blocked.

The members of Economic Development were not united on the proposals they now want to withdraw.

Vice-president Deputy Steve Falla has openly dissented from them since they were published.

The committee will require the permission of the States Assembly to take its proposals off the agenda at next week’s meeting.