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Jersey's regulator is to investigate JT's new broadband products following concerns raised by competitors.
CICRA's investigation will focus on JT's offer to customers to keep their basic broadband service of 2Mb/s at £17.99 per month, but only for eighteen months. The regulator says it is one of a series of practices by JT which may damage competition in the long term through reducing choice and value for money. It says it has received 'strong representations' from Sure and Newtel claiming the offer is anti-competitive.
However, JT has defended its proposed new broadband products, saying they are the best it has ever offered, and it is not surprising that its competitors are upset. The company's Director of Corporate Affairs Daragh McDermott said:
"Firstly, JT is proposing the most radical shake-up of broadband in Jersey for a decade, so it’s no surprise at all that the regulator wants to take a close look at that.
"We first signposted these changes back in October last year, and since then have had a really excellent response from customers, which we think shows that we have got the new products right.
"Effectively, JT is now being criticised for being too competitive. On that basis, it should come as no surprise at all that our competitors have complained - but it’s a little rich for Sure to be upset about our wholesale pricing to them in Jersey, when they actually charge us a higher wholesale price, as the network owner, in Guernsey!"
JT owns the broadband network which all operators need to use, and Michael Byrne, CICRA's interim Chief Executive said the company's competitors claim it is unfairly favouring its own products, and that the margins it is imposing on them are unsustainable:
“CICRA recognises that customers will receive a faster service but has received complaints from customers aggrieved with not having a choice and being required to upgrade to a product they do not require and that will result in a significant increase in monthly bills at the end of the 18 month period.
"If operators are unable to offer a product to rival JT in the short term they could exit the market leaving consumers with less choice and higher priced options in 18 months time.
“CICRA has also identified a series of actions by JT in the course of rolling out its fibre network which appear to disadvantage its competitors, be at the expense of fair competition and, ultimately, to the disadvantage of Jersey broadband customers"
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