- The Channel Islands Competition and Regulatory Authorities have announced their programme for the year ahead.
- Strong focus on the telecoms market.
- A proposal to incorporate the Harbour and Airport into a single organisation to be debated in the States this month.
THE Channel Islands’ competition watchdog, which looks into whether Islanders are getting the best value for money, has announced its work programme for the year ahead, with a focus on improving the telecommunications market for consumers.
In Jersey the Channel Islands Competition and Regulatory Authorities, which includes the Jersey Competition and Regulatory Authority and its Guernsey equivalent, regulates the telecoms and postal sectors. It is also responsible for administering and enforcing the Island’s competition law.
It describes its mission as being ‘to promote value and choice and quality in the goods and services available for the sustained benefit of Channel Islands consumers’.
The regulation arm of the organisation is funded through licence fees paid by the regulated industries, while States grants pay for its work on competition law matters.
The JEP spoke to Michael Byrne, the chief executive of CICRA, about the work that’s in store for the year ahead:
Telecommunications
A long-awaited improvement to mobile internet speeds in the Island is currently taking shape with the introduction of a 4G network.
The technology will mean that mobile users who can use their devices to access the internet when on the move can download data such as video at vastly faster speeds than what is currently possible on the existing 3G network. It also improves streaming of video-calling applications such as Facetime and Skype, which allow users to make phone calls via the internet.
Keeping a watchful eye on this technological development will be the Island’s competition watchdog, which will be regulating the telecoms companies to ensure that Islanders are not being overcharged and are getting value for money.
This year CICRA plans to focus on the 4G service and as part of that it plans to put in place the same ‘bill shock’ protection which is offered to people in the UK and Europe.
- CICRA has five staff at the JCRA in Jersey and four at the GCRA in Guernsey.
- CICRA is led by a board shared by the JCRA and GCRA.
- The board consists of a Chairman, three non-executive directors, chief executive, deputy chief executive and a director of finance and operations.
- The chairman is appointed by the States of Jersey and States of Guernsey on the recommendation of the Economic Development Minister and Commerce and Employment Department respectively.
- In consultation with the chairman, the Economic Development Minister and the Commerce and Employment Department are also responsible for the appointment of at least two non-executive directors, and the appointment of the executives to the Board.
Bill shock refers to cases where customers have racked up hundreds of pounds in costs after using their phones abroad and falling victim to roaming fees for downloading data, which they often do not realise until they get the bill weeks later.
‘Currently other countries offer caps on data use charges and you have to opt out of roaming protection. While In Jersey you do not get comparable protection when roaming,’ said Mr Byrne.
‘People without appropriate protection are potentially exposed to bill shock. A data cap is the kind of protection Islanders need and it will provide more peace of mind. It will be quite a key change and people will benefit from that.
He said the organisation’s second focus this year would be on fixed-line telecoms. From June Islanders will be able to get their landlines from a provider other than Jersey Telecom after a move to open up the market.
‘We are trying to open up access, so we have required JT to make the exchange lines available to other operators,’ said Mr Byrne.
‘At the moment no matter who you take a contract out with for landline calls or broadband in the home, all the exchange lines are billed by JT, so you can’t get a bundled package for all your telecoms services from a rival company. This is a key part of the link which has to be provided by JT.
‘But from June everyone will have access to another provider, giving the option of taking over the exchange line from JT.’
Another area of the regulator’s work will be to continue publishing customer surveys of the performance of Jersey’s telecoms companies.
Mr Byrne said that CICRA monitors the performance of companies by carrying out bi-annual satisfaction surveys and publishing the scores of each firm on their website.
He said: ‘The point of it is to make telecoms businesses more accountable to their customers. We are looking to create a race to the top. They all want to be the top company. When customers see how telecos perform it drives real change similar to something like Trip Advisor.’
Mr Byrne added that CICRA was also looking into carrying out an audit of the broadband networks available in the Island, including examining why parts of Jersey have a slower broadband speed than others.
Jersey Post
This year the organisation intends to continue to regulate Jersey Post through ‘light-touch regulation’, according to Mr Byrne.
The removal of Low Value Consignment Relief has meant that the amount of mail moving through the Island has vastly reduced. The tax relief allowed Jersey companies to sell goods to the UK market such as CDs and DVDs VAT-free.
The loophole that allowed it to happen was closed in 2012.
Mr Byrne said: ‘The volume of mail has shrunk massively since its removal and a lot of this business has moved elsewhere.’
He added that it was not within CICRA’s remit to look into prices being charged by local companies compared to internet prices, but faced with the choice he said Islanders should shop around to find the best deals.
He said: ‘When the choice is there consumers need to be encouraged to compare and check prices.’
Competition Law
This year the regulator intends to focus on making competition law more relevant to the public.
And where policies impact on markets it will look to contribute to the process where it can.
It also plans to keep a close eye on how local companies are working to make sure that Islanders are not been taken advantage of.
‘When it comes to mergers and the acquisition of companies, and there is a risk of reduction in competition, we can look at the implications,’ said Mr Byrne. ‘CICRA can require companies involved to give up some of their assets or commit to undertakings before it approves a transaction.
‘We also don’t want price rigging here.
‘When it comes to procurement tenders we see evidence in other jurisdictions of anti-competitive tendering. For example in the UK certain government contracts have been vulnerable to price rigging. CICRA has powers to fine companies engaged in these forms of practices that harm the economy and raise costs for all Islanders.’
Jersey Ports
A proposal to incorporate the Ports of Jersey, which includes the Harbour and Airport, into a single organisation which can act more like a private company is due to be debated in the States later this month.
If it goes ahead CICRA will be the regulator for the new company, which will remain owned by the States.
Mr Byrne said the organisation would be working closely with the States and its role as regulator will be to ensure that consumer interests are looked after.
