Jersey telecom firm JT forced to cut landline prices

JT claimed its prices were 31% cheaper than those in the UK

A telecom company has been forced to cut its landline prices after Jersey's competition authority said consumers were paying too much.

The Channel Islands Competition and Regulatory Authorities (CICRA) has issued a notice requiring JT to comply with a three-year price control.

CICRA said customers would see a 7% drop in prices below inflation in 2016 and 2017, with prices frozen in 2018.

JT said it would formally respond in the coming weeks.

CICRA's survey found JT's prices were higher than those of telecommunications company Sure, in Guernsey.

Michael Byrne said his priority was to ensure islanders got value for money when he was announced as head of CICRA in 2014

CICRA chief executive Michael Byrne said: "While the costs associated with landline services in Guernsey and Jersey are similar there is no compelling evidence to explain why Jersey consumers are paying significantly more than those in Guernsey."

He said price controls were introduced where there were concerns that a lack of market competition could allow companies to hike prices.

However, JT has initially criticised CIRCA's proposal for failing to consider international competitors, such as Skype and WhatsApp.

JT said it had already offered an 83% discount of landline services to senior citizens, and its auditor Deloitte had identified its landline services as "loss-making".