Jersey’s Competition Regulatory Authority (JCRA) has approved, with conditions, Sure’s proposed acquisition of Airtel Vodafone in Jersey.
Sure and Airtel are competitors in retail mobile services market in Jersey. As direct competitors, there was a risk that the merger would substantially lessen competition in Jersey’s mobile retail market.
The JCRA say that they have conducted a thorough review of the proposed transaction including detailed economic analysis of all information provided by Sure and Airtel and four public consultations.
The JCRA concluded the transaction was likely to substantially lessen competition in Jersey’s retail mobile market for the following reasons:
- After the transaction, Sure’s market share would increase to around 47%;
- The number of mobile phone services providers would reduce from 3 to 2, removing Airtel as a competitor to Sure and JT; and
- Airtel has historically offered some of the lowest prices to consumers in the low and medium price segments of the retail market.
The JCRA has therefore sought to protect consumers by attaching several conditions to the approval which are designed to mitigate any reduction in competition in the market for mobile phone services:
- A new Mobile Virtual Network Operator (MVNO), the Channel Islands Co-operative Society. The MVNO, using Sure’s network, should have the ability to compete independently for consumers on retail prices; and
- Sure will not withdraw any Sure and Airtel tariffs that are active as at the date of clearance of the merger. This is designed to protect today’s prices for consumers for the 36 months following completion of the transaction, after which time the Coop should be fully established and competing with Sure and JT.
Tim Ringsdore, CEO of the JCRA commented, “This process has been vital for Jersey and we are confident the outcome will protect consumers and ensure healthy competition in what is a very important market for Jersey.
“Our objective is to promote and encourage fair competition in Jersey because it encourages businesses to improve and innovate to ‘win’ customers. For consumers, this can result in better quality products and services, more choice and fair prices.”
Alistair Beak (pictured), Sure’s Group CEO, said: “Today’s announcement is great news and a key step towards restructuring the way telecommunications are provided across the Channel Islands which will result in greater investment and improved services, laying the foundation for an increasingly digital future.
“If approval of the acquisition is also granted in Guernsey, then we will embark on a very significant investment of up to £48m in a new mobile network, bringing the very best 5G technology to the Channel Islands. Customers will benefit from faster data speeds, wider coverage, greater value for money and a more resilient and secure mobile network to perfectly complement fibre broadband.
“The new 5G network will futureproof the island, enable our increasingly digital lives, and contribute to future economic growth.
“While today’s news is welcome, the transaction and its many benefits will only be realised if approval is secured from the Guernsey authorities, which is the final remaining element to the acquisition proceeding.”
