Following an investigation, CICRA found that JT has been setting its price charged to other operators for wholesale broadband services so high that the competitors would have to set their retail prices above JT’s in order to cover costs.
This is known as a ‘margin squeeze’, and acts to restrict other operators from competing with the firm in the broadband market.
The watchdog said that JT, which has about 60% of Jersey’s retail broadband market and is the exclusive supplier of wholesale fixed-line broadband to other telecoms companies, has been in contravention of its licence since 25 January.
CICRA found that so-called margin squeeze has affected six products offered by JT, and that the firm either has to drop the wholesale prices it charges other operators, increase the prices it charges customers, or both.
It said that JT must comply by the direction by 14 February.
In a statement, Graeme Millar, JT’s chief executive, said that while the company disagreed with CICRA’s findings, it has already taken action on three of the products.
‘JT notes CICRA’s allegations about alleged “margin squeeze” with real disappointment, as we believe they are entirely unfounded,’ he said.
‘But while disagreeing with CICRA’s position on this issue, we also need to minimise
any potential customer confusion or uncertainty.
‘So, we have already taken action on three of the six products mentioned by CICRA, and will be contacting the very small number of customers using the other three in the New Year, to discuss any changes required with the minimum possible negative impact for them,’ added Mr Millar.
