JCRA suggests wholesale broadband price review should lead to lower prices for consumers

12 Jul 2021

A review of wholesale broadband prices in Jersey conducted by the Jersey Competition Regulatory Authority (JCRA) should result in lower charges being passed on to consumers, the watchdog has said, suggesting end users could see savings of up to GBP80 (USD111) per year by 2026. In a press release, the JCRA confirmed it has directed JT Jersey to lower the price of wholesale broadband from GBP31.25 to GBP27.94 per user per month from 1 October 2021, with further reductions to culminate in the charge falling to GBP24.51 by 2026. According to the regulator, over the five years of the price cap the average price will be GBP GBP26.14 per user per month, and it has said it is confident the price reductions will encourage new retail competitors into the fixed broadband market, while encouraging ‘other licensed operators (‘OLOs)’ to invest in their broadband services. Meanwhile, the JCRA has claimed that it has set wholesale prices with a view to promoting more effective competition at a retail level, while still providing JT with ‘sufficient opportunity to recover the costs of installing the Island-wide fibre network and achieving an appropriate return on its investment’.

Commenting, Peter Hetherington, Senior Economic Case Officer for the JCRA, said: ‘While this is a review of the wholesale price paid by OLOs to JT, we do expect the impact to feed through into the retail market, and deliver greater choice and competition for consumers, supported by lower prices.’ Tim Ringsdore, the JCRA’s chief executive, added: ‘At a time when everyone has been impacted by the pandemic this is good news for all Jersey residents, especially vulnerable users and it will also go a long way in supporting the government’s inflation strategy during the next five years.’