Sure told to drop wholesale broadband prices by a third
Sure’s wholesale broadband prices have been criticised as being almost a third higher than they should be following a review carried out by the Guernsey Competition and Regulatory Authority.
The GCRA issued a decision yesterday instructing Sure to lower its charges by 31% from April 2024.
If price reductions are passed on to retail customers, they should benefit from an average fall in price by about £10 a month in the first full year of price control.
‘Sure’s charges to retailers of broadband for using its network are a large proportion of the final price we end up paying for our broadband at home. While a business should get a fair return for its investment, there is always a risk that monopolies with a free hand to set their prices put needless pressure on the cost of living for households by charging excessive prices,’ said GCRA chief executive Michael Byrne.
‘In the Guernsey telecoms sector an independent regulator is in place to safeguard against that. Even allowing for a generous profit margin, our review clearly demonstrated the levels of profits Sure was seeking to make from charging its competitors for retailing broadband was far too high.’
The GCRA has pursued a stated States priority in the telecom sector that wholesale products and prices should be similar to those in the comparable-sized jurisdictions in which Sure operates, to ensure Guernsey remains competitive.
The extensive review accounted for Sure’s costs and revenues in the coming years as it continues to roll out the island’s States-supported fibre network, ensuring that the reduction in charges still enables Sure to recover its efficient costs, and does not undermine the company’s ability to roll out fibre.
Sure Group CEO Alistair Beak said that the company was approaching the halfway point of the £37.5m. fibre roll-out, of which the company is funding two-thirds.
‘The GCRA’s decision does not include any impact analysis on the fibre roll-out – meaning little consideration has been given to our ability to deliver on the plan, in partnership with the States of Guernsey, to reach all of Guernsey by the end of 2026. The GCRA decision also means that Sure has no incentive to improve broadband services in the future,’ said Mr Beak.
‘Sure will continue to challenge the GCRA’s decision to ensure that both value for money and high-quality fibre services can be delivered in Guernsey in a sustainable way, for the long term.’
