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Independent Report Praises Isle Of Man's Telecomms Sector

by Amanda Banks, Tax-News.com, London

16 July 2001

The Isle of Man's Communications Commission published its independent report on the Island's telecommunications sector policy on Thursday last week. Prepared by InterConnect Communications Ltd (ICC), an independent specialist consultancy, the report contains the findings of wide consultations held on the Island in the spring.

Several public meetings also took place and the ICC held discussions with, amongst others, Manx Telecom, Internet service providers, the financial sector and Government. Amongst ICC's main recommendations are:

  • Fixed and mobile services on the Island should continue to be provided by a single operator with universal service obligations
  • Many of Manx Telecom’s prices compare well with other operators in the UK, the USA, Europe and the Channel Islands but there is scope for some mobile and fixed line tariff reductions and for expanding the range of services and packages offered
  • Manx Telecom, while highly regarded for the quality of its service, should provide transparent accounting for its various businesses
  • There is scope for the gradual introduction of competition in respect of certain services. Licences should be granted, subject to certain caveats, to the Manx Optical Agency and to Cable & Wireless
  • Negotiations should start with Manx Telecom for a new 15 year licence to replace its current 1986 one, which expires in 2006. Its licence fee should relate to the cost of regulation, not be 15% of profits
  • New communications legislation should be introduced, strengthening the regulatory powers of the Communications Commission. Government Ministers should not chair public bodies such as the Communications Commission or Manx Telecom.

Welcoming the report, new Communications Commission Director, Anthony Hewitt said: 'ICC has produced a sound framework for the future of telecommunications on the Isle of Man. The world-class infrastructure and services we already have underpin the Island's position as a centre of excellence, particularly for E-commerce and the financial sector. Implementation of the key recommendations of this report will enable the Isle of Man to sustain and enhance that position.'

Tynwald will be asked to debate the report and its recommendations in its next session.

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