P&R backs move to suspend law for telecoms sale

States members will vote on whether to suspend competition law

The States of Guernsey's top committee has backed a proposal to freeze the island's competition law temporarily to allow for a proposed telecoms takeover.

Policy and Resources (P&R) is supporting the exemption to allow Sure to acquire Airtel-Vodaphone.

P&R said the takeover had "public benefits" including faster 5G roll-out, providing "telecommunications security" and reducing carbon emissions through "lower power consumption".

Lyndon Trott, Guernsey's chief minister, said: "We need to maintain a balance between competition that benefits the consumer and the ability of businesses in critical areas to invest and improve infrastructure that we all rely on."

Mr Trott said the competition law "allows for exemptions where there is a clear public benefit, and this is one of those cases".

The decision comes after analysis from independent experts, as well as consultation with local businesses and regulators, P&R said.

Sure has promised to put in a Mobile Virtual Network Operator (MVNO), which will give consumers a choice of phone service retailers.

Mr Trott said: "Protecting consumers, while also enabling investment, is key and the inclusion of an MVNO is particularly important as it brings another competitor into the market, using Sure's network but giving consumers choice for where they get their mobile services."

States members are expected to vote on the proposal later this month.