M-005 - Telecoms Retail Pricing Market Study

Introduction

On 16 November 2021 we launched our market study into telecoms retail pricing. We released our final report on 21 April 2022.

Findings

The findings arising out of the study with respect to telecoms retail pricing are as follows: 

• Jersey consumers enjoy a competitive market with four fixed service providers and three mobile providers, offering a variety of services and choices often unmatched in larger markets.
• Compared to Guernsey, the Isle of Man, and similar-sized advanced markets, telecom costs in Jersey are generally competitive and below the overall average.
• In the global market, costs for most services remain competitive, except for fixed broadband and some bundled offerings, where Jersey consumers face above-average costs. Global cost variations are influences by diverse underlying factors.
• Comparisons with the United Kingdom (UK) are a natural focus for Jersey consumers, but higher costs of goods, services and wages in Jersey can skew the analysis. Key points include
  • Mobile voice and data services are more expensive in Jersey than in UK.
  • Fixed broadband (100 Mbps minimum) is cost-competitive or better than in the UK.
  • Fixed voice services are cheaper in Jersey, though usage is declining in both markets.
  • Bundled service costs in Jersey are generally on par with or higher than the UK.

Based on the findings, we made the following recommendations:

Recommendation 1

The Authority would encourage consumers to shop around before agreeing their next contract to find the deal that is best for them.

Recommendation 2

The Authority will, in future work programmes, take further steps to address problems consumers may face in switching services between providers.

Recommendation 3

The Authority will consider other service considerations, wider than just pricing, in its future work. A key focus will be on consumer protection, for example, around contractual terms and compensation.

Recommendation 4

The Authority will work with Teligen to track prices on an annual basis, with a full report update carried out after an appropriate period of time has passed.