Sure waits to see how Guernsey will conclude Airtel merger deal
Sure’s takeover of rival mobile operator Airtel-Vodafone has received the go-ahead in Jersey – but it is not clear how and when the deal might be concluded in Guernsey.
While the process in Jersey is now finalised, the acquisition cannot proceed unless similar approval is achieved in Guernsey, where Economic Development last summer tried to take over responsibility for the deal from the Guernsey Competition Regulatory Authority, which was set to block it.
However, after the Jersey Competition Regulatory Authority also expressed concerns about it, the committee pulled its report to the States.
The States was asked about a likely timeline yesterday but was unable to respond before the newspaper went to print. The GCRA declined to comment.
Sure CEO Alistair Beak described the news from Jersey as a ‘key step’ towards restructuring the way telecommunications were provided across the Channel Islands, but admitted that Sure was still waiting to hear how the deal would be progressed in Guernsey, which is needed for it to be finalised.
‘I haven’t spoken to Economic Development since the JCRA’s decision was announced,’ he said.
Months of deadlock was finally broken in May when Sure and the Channel Islands Coop agreed to work together and their proposal allayed JCRA concerns surrounding reduced competition in the islands’ mobile market. They agreed that the Coop would become a mobile virtual network operator if the deal, described as a merger, went ahead.
Mr Beak believed that the takeover was now in an even stronger position than last summer.
Should approval of the acquisition be granted in Guernsey, he said Sure would look to spend up to £48m. on a new 5G mobile network for the islands, offering faster data, wider coverage, greater value for money and a more resilient and secure network.
The JCRA said it had conducted a ‘thorough’ review of the takeover, and concluded it was likely to ‘substantially lessen’ competition in Jersey’s retail mobile market. It has therefore attached a number of conditions, including the Coop having the ability to compete independently for consumers on retail prices once its mobile network is set up.
Sure will not withdraw any Sure and Airtel tariffs that are active as at the date of clearance of the merger to protect prices for consumers for three years, after which time the Coop should be fully established and competing with Sure and JT.
JCRA CEO Tim Ringsdore said the merger process had been vital for Jersey, and was confident the outcome would protect consumers, as well as ensuring healthy competition.
