Competition regulators will investigate if Jersey Telecom (JT) could be split up and sold in separate sections.
The company's land-line phone network could be sold separately from its retail and mobile section.
If it goes ahead, the sale of the States-owned business is expected to raise about £200m for the government.
BT, Cable & Wireless and Telefonica - which owns O2 - have expressed interest. But JT's board has not been officially contacted.