Guernsey’s Committee for Economic Development has proposed a second suspension of the island’s competition law to permit telecommunications company Sure to acquire Airtel-Vodafone. The move follows a similar proposal made last year, which was later withdrawn without explanation.
The proposed suspension would allow Sure, which has already announced its intention to purchase Airtel-Vodafone, to bypass the standard regulatory approval required for acquisitions involving companies with turnovers exceeding £2 million. This approval process is designed to prevent monopolies and ensure fair competition.
Sure has argued that the acquisition would bring significant economic benefits to Guernsey, including a substantial investment in the island’s telecommunications infrastructure. The company stated that if the proposal is approved, it would offer Airtel customers three-year contracts and invest up to £35 million to develop a 5G network, marking the island’s first introduction to 5G technology.
According to Sure, the acquisition would not only enhance telecommunications services but also retain three operators in the mobile market, thus supporting a competitive landscape. The company also emphasized that the investment would lay the groundwork for a more digitally connected future for Guernsey.
Alistair Beak, CEO of Sure Group, highlighted the importance of high-speed, reliable networks in modern life. “Everything we do today, from education to business to connecting with each other, relies on robust digital infrastructure,” Beak said. “Sure’s proposed acquisition of Airtel will support islanders’ increasingly digital lives and contribute to economic growth.”
The Committee for Economic Development has previously argued that suspending the competition law would benefit consumers by fostering investment and enhancing service quality. Despite these arguments, the exact reasons for the initial withdrawal of the proposal last year remain unclear.
The decision to suspend the competition law and approve the acquisition will now be subject to review by Guernsey’s deputies. Sure is hopeful that the deputies will recognize the potential benefits and is prepared to engage with them to address any concerns or questions regarding the acquisition.
As Guernsey continues to navigate its regulatory landscape, the outcome of this proposal will be closely watched for its impact on the island’s telecommunications sector and broader economic development.