States is asked to confirm Sure-Airtel deal across islands

The Committee for Economic Development has again presented a policy letter to the States seeking to suspend the island’s competition law to push through the deal, which has already been approved in Jersey.

It did so last summer, only to pull it at the last moment when the Jersey competition regulator rejected the deal.

But now, following approval in Jersey, the committee is back looking for deputies to rubber-stamp the deal across the islands.

It said it has continued to pursue the matter ahead of the GCRA, saying there were good public policy reasons to do so, given the broader benefits that can be secured for the jurisdiction.

Economic Development Committee president Neil Inder said the committee, by a majority, with Deputy Steve Falla dissenting, believed that ‘the wider economic benefits outweigh any concerns around the impact on competition within the market’.

Once approved, Airtel-Vodafone will exit the Channel Islands market and Sure will work with the CI Coop for the retailer to become a virtual mobile operator, working off Sure’s network.

Sure will also invest another £35m. into its core network, half of that directly into Guernsey, will establish a 5G-enabled network, and cut the number of masts in the island by a third.

‘The commitments from Sure secure the best possible outcomes for consumers and guarantees large-scale investment in Guernsey,’ said Deputy Inder.

‘The committee also welcomes the Coop’s entry into the market, subject to the approval and completion of the transaction. It is a very positive outcome for competition and for consumers, and is a positive endorsement of Guernsey’s overall business environment.’

Sure said that approval of the deal, now expected in October, would ‘transform the way telecommunications is delivered in Guernsey’.

The telco said that it had proposed a number of additional legally binding commitments – including the continuation of existing tariffs and pricing – which have been strengthened by its agreement with the Channel Islands Coop to launch a virtual mobile network, meaning customers will continue to have the choice of three mobile providers if the transaction is approved.

‘Everything we do today, from education to business to connecting with each other, is built on a foundation of high-speed, reliable networks, and Sure’s proposed acquisition of Airtel will support islanders’ increasingly digital lives and contribute to economic growth,’ said Sure Group CEO Alistair Beak.

‘The legally binding commitments to invest and transform telecommunications and put in place enhanced consumer protections will ensure Guernsey will have world-class digital infrastructure and services for the future.

‘We are hopeful that deputies will recognise these benefits.’

At the time the takeover was first mooted, Sure had about 60% of the Guernsey mobile market, with Airtel and JT having about 20% each. In Jersey, the nature of the market would now see JT and Sure competing on close to a 50-50 basis.

Airtel, which entered the CI mobile market in 2007, said in the run-up to last year’s postponed debate that it had lost money over the period through the CI venture.