Jersey Telecom 'should be split'

The sale is expected to raise about £200m for the States

A watchdog organisation has said islanders would benefit more if Jersey Telecom was sold in two parts.

The Jersey Competition Regulatory Authority (JCRA) made the comments at a public hearing into the proposed sale of the States-owned Jersey Telecom.

JCRA director Charles Webb said the States should consider selling the firm as retail and wholesale networks.

He said this would raise more money and stop Jersey Telecom discriminating against new providers.

The Economic Affairs scrutiny panel is convening over the public hearings.

£200m sale

The JCRA told the panel the States needed to consider a structural or functional separation in more detail.

Mr Webb said Jersey Telecom currently controlled the entire network and companies such as Newtel were both customers and competitors in providing broadband access, which affected competition.

The sale is expected to raise about £200m for the States and pave the way for competition, but objectors fear it could result in a private monopoly.

Jersey Telecom Group chairman John Henwood said the firm would have to be downsized if it was not sold.

The company employs 437 staff in Jersey and 37 workers in Guernsey.

The union which represents the workers is opposed to the sale.