JERSEY Telecom has had its prices fixed and its profits capped by the Island’s competition regulator.
The Jersey Competition Regulatory Authority has told the phone operator that any price rise for fixed line calls over the next three years must be kept to two per cent below the annual inflation rate.It is one of four directions that the JCRA has issued to the States-owned telecoms operator.Another direction caps the level of profit that JT can make on its investments in the Island.
The JCRA has decided that any return should be no more than 11.25 per cent, meaning that if JT invests £100 it cannot make more than £11.25 in profit.
This only relates to money spent in Jersey - so it doesn’t affect, for instance, any investment in Guernsey, where JT has a sister company.
Article posted on 30th April, 2004 - 12.00am
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