Guernsey Press

Telecoms sector contributed more in tax last year

GUERNSEY’S telecoms sector contributed more in tax in 2018 amid an increase in turnover, according to a new report from competition watchdog Cicra.

Published

It contributed £5.4m. in tax in Guernsey last year compared to £4.8m. in 2017. In the larger market of Jersey, the sector contributed £14.9m. in tax in 2018 and £13.8m. in 2017.

Turnover in the sector in Guernsey rose to £67.1m. in 2018 from £64.1m. in 2017. However, the 2018 figure was lower than preceding years – including £69m. in 2016 and £70.3m. in 2015. In Jersey, total turnover was £101.2m. in 2018 compared to £101.9m. in 2017. Turnover for the telecoms sector in Jersey was £97.8m. and £98.2m. in 2016 and 2015 respectively.

‘Total turnover of the telecommunications industry in the Channel Islands (including fixed, mobile, internet, the sale of handsets and the provision of telecommunications associated with data centre/hosting services) was £168.3m. Revenues associated with Guernsey subscribers while on and off the island, plus revenue from visitors to Guernsey in 2018 was 2.2% of Guernsey’s GDP. In Jersey the equivalent figure was 2.4% of GDP,’ said the report.

‘The biggest share of revenue in Guernsey and Jersey was generated in the fixed sector. In 2018 in Guernsey, it accounted for 63% of total industry turnover, and in Jersey it represented 62%.’

The report set out the levels of capital investment in the years 2013 to 2018. In the period covered, capital investment in telecoms was at its highest in Guernsey in 2015 when it stood at £22.5m. Since then, it has dropped to a low of £4.9m. in 2017 before increasing to £5.2m. in 2018. Industry figures have said this relates to the cyclical investment in the wider telecoms industry with each generation of technology – and 5G could see a major increase in investment in Guernsey as part of a worldwide trend.

In Jersey, capital investment has been consistently higher and was £19.6m. in 2018. That compares with £23.3m. in 2017. ‘Significant expenditure on fibre roll-out in Jersey accounts for part of the large proportion of fixed access network spend,’ said the Cicra report.

Meanwhile, the number of full-time equivalent staff was 222 in 2018 compared to 227 the previous year. In Jersey, the number of full-time equivalent staff has been increasing for several years and stood at 554 in 2018.

n The Cicra telecommunications statistics and market report 2018 presents information on the sectors in the Bailiwicks of Guernsey and Jersey. It covers the calendar year 2018 and is based primarily on data submitted by the licensed telecoms operators during the first half of 2019.