A world-class telecoms system is crucial for our economy

Wednesday 4th February 2009, 2:59PM GMT.

From Peter Funk, chairman of Newtel; Graham Hughes, chief executive of Sure; Iain Williams, chief executive of Airtel-Vodafone.
THE article ‘Competitors cry foul over JT price rises’ (JEP, 22 January) did not address all the reasons why
Sure, Newtel and Airtel-Vodafone have such serious concerns and view this issue as a sword of Damocles hanging over us.

We believe that JT’s imposition of massive wholesale price increases must be challenged to ensure that telecoms market pricing remains competitive – not least because it is evidence of a more systemic problem with the regulation of the market.

Jersey Telecom’s imposition of a 110% increase in wholesale fixed line pricing, plus a raft of other price hikes, will directly affect our ability to compete and may well affect both our customers and theirs.

We are frustrated that there has been no clear and public justification for the increases because Jersey Telecom does not have to publish regulated accounts. We believe that the JCRA has the responsibility to act when any operator behaves in a manner which could stifle competition and investment in the telecoms market.

In the UK, for example, OFCOM recently responded decisively to force British Telecom to withdraw radical wholesale price changes, ahead of a fundamental pricing review. We asked the JCRA to adopt a similar approach, but they advised us that they were not empowered to do so. Instead, they pointed to a wholesale review, which could take up to 18 months to complete. It cannot be acceptable for any of the operators, including JT, to live in a state of uncertainty for 18 months. Such inaction leaves the market mired, with operators unable to make investment decisions because they are uncertain about their cost base.

A world-class highly competitive telecoms market place is critical to support Jersey’s economy and global standing. The JCRA should have the will and the authority to undertake an investigation now, ahead of the planned wholesale review, and should instruct JT to withdraw all revised wholesale pricing pending the outcome of this Competition Law investigation.

Further to that, the States’ fundamental review of the role and powers of the JCRA and the Telecommunications Law now seems even more critical if we are to ensure that the Jersey market is well regulated.

1
Michael

February 5, 2009 at 10:30 am

Perhaps the gentlemen from the above companies would be willing to offer us all an alternative on the island. Although the landline service in Jersey is still solely in the hands of JT, the other operators, of which two provide mobile networks that have yet failed to provide an island-wide 3G network that us residents can be happy with. Perhaps they would be willing to run fibre optics throughout St Helier to offer businesses and town residents a 50Mb broadband connection and their own landline service. This would not require any access to the JT cable loop and calls can be routed through the current routes that the mobile networks use to route their calls.

This is just an idea that may help to improve island telephone services to the higher level that these companies are complaining that we don’t have and it would at least be actually getting something done rather than wasting time by sending petty letters of complaint into the local paper. Maybe things would happen a lot quicker if highly paid executives worked on what their companies are here to do instead of quarrelling.

Just my thoughts….

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