The Jersey Competition Regulatory Authority has announced a further period of consultation to give interested parties an opportunity to comment on the proposed acquisition by Sure of Jersey Airtel.
The proposed merger of two of Jersey’s three mobile phone operators was first notified to the Authority in November 2022 and, in accordance with the provisions of the Competition (Jersey) Law 2005, has been subject of a detailed competition assessment by the Authority.
The purpose of the Authority’s assessment is to protect consumers from higher prices and/or lower quality service and products by ensuring that a proposed merger does not lead to a substantial lessening of competition. In this case, in July 2023, the Authority found that the proposed merger was likely to substantially lessen competition in Jersey’s retail mobile market.
Between October 2023 and May 2024, the Authority’s review of this merger was on hold as the Authority was awaiting further information from the parties. This information was received in May 2024.
Competition Concerns
Sure has submitted several commitments that it believes will mitigate the concerns of the Authority regarding the likely substantial lessening of competition in the market. In particular the entry of a Mobile Virtual Network Operator (MVNO), which would maintain the number of service providers at three in the Jersey market. MVNOs are common in other jurisdictions (such as Tesco Mobile in the UK), but this would be a first for Jersey. In this case, the proposed MVNO is the Channel Islands Co-operative.
Consultation
The Authority has initiated a four-week consultation through which it is seeking views from interested parties on whether the full commitments package offered by Sure has the potential to address the Authority’s competition concerns. The views provided will assist the Authority in its decision whether to refuse to approve the merger or approve it with conditions.
The Authority’s consultation can be found here, and the deadline for submissions is 28th June 2024.
Following the Jersey Competition Regulatory Authority (JCRA) announcement of the consultation, Alistair Beak, Sure’s Group CEO, said: “We welcome the JCRA’s consultation on our intention to acquire Airtel Vodafone in Jersey, which is a significant step forward in the process.
“Once the public consultation concludes, and if the JCRA then approves the merger, the final remaining element to the acquisition proceeding will be securing approval from the Guernsey authorities.
“If the transaction is approved then Sure will embark on a very significant investment of up to £48m in the islands’ mobile networks, bringing the very best 5G mobile technology to the Channel Islands. Customers will benefit from faster data speeds, wider coverage, better value for money and a more resilient and secure mobile network.
“Our agreement with the Channel Islands Coop, announced last week, to facilitate Coop Mobile’s entry to the market as a Mobile Virtual Network Operator (MVNO), strengthens the proposed merger by retaining three operators in the mobile market and, according to the JCRA’s consultation document: ‘the risk of a substantial lessening of competition post-merger is reduced’. The other legally binding commitments we have made to the JCRA provide further protection for consumers.
“Today’s consultation is a step in the right direction for the proposed merger, which we firmly believe is a good deal for Channel Islands’ customers and the islands’ digital futures. We eagerly await the next steps of the process in both islands as to whether this landmark evolution in mobile connectivity can go ahead.”
