Jersey Telecom could be sold to a large telecommunications company.
The possible sale of the organisation is to be discussed by the States - the largest shareholder - after a period of public consultation.
Rumours have been circulating about the future of the phone firm since its partial privatisation a few years ago.
The 437 staff in Jersey and 37 workers in Guernsey have been told their jobs should be secure even if the company is sold off.
Treasury officials have asked whether it is wise for the States to retain control of Jersey Telecom, when few telecoms companies remain state-owned.
'No great surprise'
States treasurer Ian Black said: "We've got to look at telecoms purely as an investment and we think this is a valuable, well-run company.
"The best thing at this time is to realise this investment and to place the proceeds into the strategic reserves for the good of the people of Jersey."
John Henwood, chairman of Jersey Telecom Group Limited, said the idea of selling the company off had been in the background for several years.
He said: "That was always made very clear to the staff, the board and management have a very open policy and so it has come as no great surprise.
"In a sense it will have come as a relief - at least now we know."
Public consultation is due to last until 8 September.
If the sale goes ahead, the Jersey Competition Regulatory Authority will be tasked with making sure prices are fair and services maintained.