Broadband prices a third too high - watchdog

Current Sure wholesale prices need to be reduced by 31% from 1 April 2024, the island's competition watchdog says

Broadband prices are almost a third too high in Guernsey, the island's competition watchdog has found.

The Guernsey Competition and Regulatory Authority (GCRA) said current wholesale prices charged by Sure needed to be reduced by 31% from 1 April 2024.

It would mean customers could see an annual saving of £116 by the first year of the price control, the authority said.

Sure said it would challenge the GCRA's decision "to ensure that both value for money and high-quality fibre services can be delivered" in Guernsey long-term.

The watchdog had suggested in May that prices should be reduced by 11%, before finalising its decision in December.

Michael Byrne, GCRA CEO, said the regulator was there to safeguard against "excessive prices".

He said: "While a business should get a fair return for its investment, there is always a risk that monopolies with a free hand to set their prices put needless pressure on the cost of living for households by charging excessive prices.

"Even allowing for a generous profit margin, our review clearly demonstrated the levels of profits Sure was seeking to make from charging its competitors for retailing broadband was far too high”.

The GCRA said it accounted for Sure's costs and revenues in the future when it rolls out the fibre network.

"This was done to ensure that the reduction in charges still enables Sure to recover its efficient costs and does not undermine Sure's ability to finance its fibre network roll-out," the company said.

The Sure Group said its ongoing £25m fibre rollout provided value for money as it was free to upgrade and that connectivity was "far faster than in similar sized countries".

CEO Alistair Beak said: “The GCRA’s decision does not include any impact analysis on the fibre roll out – meaning little consideration has been given to our ability to deliver on the plan, in partnership with the States of Guernsey, to reach all of Guernsey by the end of 2026."

He added that Sure would "continue to challenge the GCRA's decision to ensure that both value for money and high-quality fibre services can be delivered in Guernsey in a sustainable way for the long-term".