Senator Sarah Ferguson has called for the States-owned telecoms company to be restructured and divided into a retail and a wholesale/infrastructure body. She has lodged a proposition calling on Treasury Minister Alan Maclean, who acts as shareholder representative for the company, to split the organisation.
Her proposition comes after Senator Maclean revealed that he was considering selling off States assets, such as JT, to replenish the Island’s rainy day fund. He estimated that selling JT to a private firm could raise between £300 million and £400 million.
However, Senator Ferguson believes that the wholesale and infrastructure side of the business, which focuses on delivering new technology and telecoms infrastructure, could see ‘significant future growth’ and should be retained.
In her proposition she said: ‘Given the present financial constraints of the Island, it is not surprising that the Council of Ministers are contemplating the sale of JT.
‘What is clear from the strategy is that the best value for the Island is obtained from separating the wholesale and retail sides of the company. This compares with the approach being taken to BT by OFCOM.
‘Firstly, this would enable there to be a properly competitive retail sector for telecommunications. The retail side of the business could be sold or even floated on the CI Stock Exchange to raise funds.
‘Secondly, there are significant future growth prospects in the wholesale side of the business. Also, if we sell the wholesale business, then we are effectively selling the family silver.’
However, Digital Jersey chief executive Tony Moretta said that the telecoms industry in the Island was ‘thriving’ and that using the approach taken by BT in the UK might not be in the best interests of the industry.
He added that he would be meeting Senator Ferguson to discuss her proposals.
He said: ‘We have a thriving telecoms industry in Jersey, with over 600 full-time employees, and accounting for around 2.5 per cent of GDP, so it’s important for both the digital sector and the whole economy.
‘Personally, I think that following the UK structural model would be [using] a sledgehammer to crack a nut for somewhere the size of Jersey, with a high cost and no obvious benefit – especially when in the UK they have done this to deliver objectives like fast broadband, which we already have.
‘However, we will be discussing Senator Ferguson’s proposition both with her and with the industry in the coming weeks.’
The proposition is due to be debated on Tuesday 14 November.
