P&R backing special exemption to allow Sure to buy Airtel

The deal has been delayed by several hurdles since the takeover was first announced in October 2022.

Jersey’s competition regulator is not objecting, but the deal needs a time-limited exemption to Guernsey’s Competition Law to allow the acquisition to proceed.

Policy & Resources president Lyndon Trott said this sort of exemption was needed.

‘We need to maintain a balance between competition that benefits the consumer, and the ability of businesses in critical areas to invest and improve infrastructure that we all rely on,’ he said.

‘That is why the Competition Law allows for exemptions where there is a clear public benefit, and this is one of those cases. Protecting consumers, while also enabling investment, is key and the inclusion of a mobile virtual network operator is particularly important as it brings another competitor into the market, using Sure’s network but giving consumers choice for where they get their mobile services.’

The committee felt the transaction would enable investment in Guernsey’s telecoms infrastructure, and considered that the conditions attached to the exemption – included in Economic Development’s proposals to the States – would protect consumers in Guernsey.

It was announced earlier this year that there would be a new mobile service, with Coop Mobile becoming a mobile virtual network operator, with services transmitted over Sure’s network infrastructure.

The JCRA felt the Coop would become an effective competitor, so islanders would still have a choice of local mobile operators.

P&R was also assured by the conditions that will be put in place for consumers on pricing and also the establishment of a mobile virtual network operator, which would effectively mean that consumers still have a choice between three different retailers of telecoms services in the future, as is the case at present.

The Competition Law provides for exemptions such as this, in cases where there is a public benefit that needs to be part of the considerations.

The matter is set to be debated by the States.