In a telecoms takeover bid, there has been a plea to freeze Guernsey’s competition law. Guernsey’s Economic Development Committee is seeking the support of deputies to suspend competition law temporarily.
The proposed change aims to facilitate Sure’s acquisition of Airtel-Vodafone, allowing Airtel-Vodafone to exit the market as part of the deal. If approved, the proposed changes could lead to new deals being offered to existing Airtel customers.
The plea to suspend competition law is motivated by the regulatory requirement to obtain approval for acquisitions of companies with turnovers exceeding £2m, in order to prevent the creation of monopolies that may harm consumer interests.
The deal between Sure and Airtel-Vodafone, if finalized, is expected to bring benefits such as faster speeds, wider coverage, and better value for money.
Additionally, the merger would involve a significant investment in a new mobile network, including the provision of 5G services. The proposal may be voted on during the scheduled States meeting, with the possibility of a vote as early as Wednesday, subject to approval by deputies and the presiding officer.
In a bid to temporarily suspend competition law, Guernsey’s Economic Development Committee is actively seeking the support of deputies.
Sure’s acquisition of Airtel-Vodafone would be facilitated if the proposed change allows Airtel-Vodafone to exit the market.
Sure and Bharti Global Limited reached an agreement in October of the previous year for the complete acquisition of Airtel-Vodafone’s stake in the Channel Islands by Sure.
If the proposals are approved, which are scheduled to be submitted on Monday, it could result in new deals being offered to existing Airtel customers.
The change is being pursued to address the regulatory requirement of obtaining approval for acquisitions of companies with turnovers exceeding £2m. This measure aims to prevent the formation of monopolies that could harm consumer interests.
Sure stated that if the deal is successfully completed, it would result in improved benefits such as faster speeds, broader coverage, and enhanced value for money.
The merger announcement includes plans for a significant investment of up to £48m in a cutting-edge mobile network, encompassing the provision of 5G services.
A reliable source has indicated that if the proposals from the Economic Development Committee receive deputies’ approval, existing Airtel customers would be presented with three-year contracts by Sure.
Deputies and the presiding officer may permit the proposal to be voted on as early as Wednesday during the scheduled States meeting.
Source : bbc.com