Jersey Telecoms Regulator Explores Mobile Options

by Jason Gorringe, Tax-News.com, London

02 August 2002

Jersey's Telecoms Regulator, the Jersey Competition Regulatory Authority (JCRA), has issued a consultation document on the future of mobile phone use in the Channel Islands.

'The Future of Mobile Communications in the Channel Islands' maps out a number of options for increasing competition in mobile phone services, including the possibility that 3G licences could be offered - but the paper is doubtful about this route given the difficulties being experienced in other countries. The Isle of Man is the only European country to have introduced 3G, and it is being used by BT effectively as a test-bed.

JCRA acquired its regulatory powers over Jersey Telecom with the bringing into force of the Telecommunications (Jersey) Law 2002 on July 1st. The JCRA has issued a number of consultation documents on issues central to the form of regulation that is to be effected on the Island.

'Telecommunications services, like postal services,' says the JCRA, 'are a key into virtually every enterprise on the Island. Introducing competition has the potential to lead to important improvements in efficiency, productivity and innovation within both sectors with consequences for overall economic welfare and growth in Jersey. Many in business will have understandable concerns about opening the markets up too quickly to competition.

'Although there is no economic reason for delaying the enactment and enforcement of competition law, the JCRA's gradual approach through consultation should facilitate an open and frank exchange of views on the process for the determination of licences on the Island. The gradual approach will allow Jersey industry to prepare its firms for the new regulatory regime. It will also allow us at the JCRA to achieve a judicious balance between our legal objectives and our advocacy role in educating the public and business so that the Island learns to adjust to a competition culture.'

Things are also moving in Guernsey, where prospective new operator Newtel has applied for a telecoms licence to compete with Guernsey Telecoms. The company is expecting to hear in the next two months whether Guernsey’s Office of Utility Regulation will accept its application and on what terms. Guernsey Telecom was recently acquired by international telecoms behemoth Cable and Wireless, which has had endless difficulties over its monopoly practices in a variety of offshore jurisdictions, particularly in the Caribbean.

Newtel, which is based in Jersey and already provides a range of telephone and Internet services on the island, would like to develop a network covering the whole of the Channel Islands, providing a range of broadband voice and data services for business and private customers including internet access and leased line circuits. If its application is successful, the company's plans include the building of a wireless network and the installation of an independent link to France using fibre-optic strands in the electricity grid, routed through Jersey.

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