Guernsey spectrum charge 'risks' mobile phone price rises

A radio spectrum charge would make price rises for Guernsey mobile phone customers "unavoidable", according to the regulator.

The Commerce and Employment Department is consulting on plans to introduce a 5% charge on mobile revenues for using the bandwidth.

Andrew Riseley, chief executive of the regulator, said: "If a new levy was placed on operators there is a risk the increased cost would be passed on.

"I think that would be unavoidable."

Wireless services such as mobile phone calls and mobile internet connections are run through the spectrum.

Previously the regulator has controlled the price of mobile contracts and calls, but Mr Riseley said there was "no foreseeable situation" in which that would return.

He said only competition between the three local operators could discourage them from passing on the full cost of any new charges.