Guernsey Internet Firm Calls For Telecoms Liberalisation

Mandy Robinson, Tax-news.com, London

21 September 2000

Channel Islands company Newtel Solutions has joined up with Internet Service Provider (ISP) UUNet, to develop a new Internet service in Guernsey. The company, which is part of the Jersey-based Newtel Group, is dedicated to providing the service in Guernsey in the belief that there is a massive demand on the island that Newtel is able to satisfy. Newtel Group chairman Peter Funk says: 'there is a huge demand in Guernsey. We’re signing up customers and there is a high level of interest being shown by companies looking to set up e-commerce activities.'

But the company claims that its ability to provide a cost-efficient service is being hindered due to the delayed liberalisation of the telecoms market on the island. Peter Funk said: 'I think it will get sorted out but it’s primarily dependent on the pace of liberalisation in the telecoms market ... it’s going to take some time, we need a clear legislative structure in place and new legislation takes time.'

Mr Funk is of the opinion that Guernsey's telecom market is not currently in a position to be flexible enough to enable the island to a major force in e-business due to the absence of competition. He believes that the telecommunications industry has the ability to grow by up to 25% each year if Guernsey is opened up to competition. He says 'if competition is introduced in the Channel Islands prices will fall and demand will increase. Competition will attract, or help to attract, business, particularly e-commerce business, that is now not looking at the islands because of the lack of competition.'

In agreement with Peter Funk is chairman of the local branch of the Institute of Directors, Andrew Ozanne. Mr Ozanne also says that Newtel’s new venture would only come to fruition once the new regulatory framework for Guernsey's telecoms industry had been agreed - then and only then will the current high cost that users incurr be reduced: 'We remain concerned that the cost of providing such a service will mean that it will be prohibitively expensive, which means that local businesses will not be able to take up the opportunity because they will not be able to compete in the global market place.'

Mr Ozanne points out that although bandwidth costs for local ISPs have been lowered in the previous year, they are still ten times more expensive than services in the UK. He insists that the government must take some responsibility for speeding up the liberalisation of the telecoms market - he says the Institute of Directors wants to see 'a regulatory framework set up in order that we can maximize advantages of competitive bids from operators for running telecoms services ...it concerns us that we don’t know where Telecoms has got to. We need a real political shove to maintain the momentum necessary to keep pace with the demands of e-business or we could run the risk of losing out.'

Mr Ozanne is impressed with the comprehensive package that Newtel has to offer: 'I welcome the initiative being taken by Newtel to provide a comprehensive service and facility to enable the ongoing development of e-business in the islands.'

As part of its Internet service, Newtel claims it can provide improved opportunities to promote e-commerce and communications through fast and resilient access to the Internet through Newtel’s point of presence in Guernsey direct to the UUNet Internet backbone in the UK. Indeed, the company claims a high degree of resilience through circuits between Jersey, Guernsey and the UK. Also, 50% of its 25 internet customers registered since Newtel's launch in April are based in Guernsey.

The service is likely to be taken advantage of by those in the Guernsey business sector and will enable ISDN and leased line connections to link directly from a customer’s local premises to UUNet.

.

Recommended

Write a comment