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Recommended changes to Telecoms Industry absolutely necessary say Sure

Tuesday 02 February 2010 by

Changes to Jersey’s telecoms industry, which have been recommended by independent consultants, are necessary if a fully competitive telecoms market is to be developed and maintained.

Following the publication of Regulaid BV’s review and draft report to the Jersey Competition Regulatory Authority (JCRA), Sure has welcomed the proposals which, if swiftly and effectively implemented, it believes will make the market more competitive leading to better pricing and service of consumers.

"The report, even in the edited version we have seen, is substantial and detailed. Amongst the conclusions is that the problems in Jersey’s telecommunications sector are severe because there is no firm foundation for effective competition. We have consistently highlighted the challenges of operating in Jersey and the disparity between Guernsey and Jersey in the regulatory regimes and the report supports this viewpoint," said Peter Stahelin, Director of Legal/Regulatory Affairs, for Sure in the Channel Islands and Isle of Man.

"Operators such as Sure who have entered the market and competed against Jersey Telecom have already had enormous price and service benefits for consumers which obviously must be welcomed," said Mr Stahelin.

"However, in order to maintain a high standard of service at the best possible value and to ensure that all operators can compete the wholesale costs being charged by JT are critical."

The 100 page report draws a number of conclusions including that the ’playing-field’ in Jersey is more tilted towards the incumbent, retail prices are higher when compared to Guernsey and telecoms wholesale prices are much higher; the lack of effective regulation is having a negative impact on operators’’ ability to compete.                                                                             

 "Sure would be responding in full to the JCRA as requested, both on the published review and recommendations, and to seek clarity on further necessary detail and requirements, such as the need to publish to the industry the revised regulated accounts which are to be produced by JT. As ever, Sure’s goal is to work with the JCRA to make competitions as fair as possible, so that consumers benefit"

 "Sure is committed to delivering lower prices in the Channel Islands and we have worked closely with the Office of Utility Regulation in Guernsey to achieve this and will continue to do so. We look forward to working with the JCRA to implement Regulaid’s recommendations and deliver even better value to consumers."