A U-TURN on the planned sale of Jersey Telecom means any growth plans for Wave Telecom will have to be put on hold in the short term. Jersey’s Treasury minister Senator Terry Le Sueur announced to the States last week the abandonment of the planned sale of Wave’s parent company, which could be worth about £200m.
Now JT will stay in States ownership for at least three years.
‘Had the sale of the Jersey Telecom Group gone ahead, it would have allowed the group access to the economies of scale that are enjoyed by the multinational firms operating in telecommunications today,’ said Wave Telecom managing director Tim Ringsdore, pictured.
‘Wave Telecom, as part of the group, will now be looking to achieve these benefits in other ways. This could mean partnerships or alliances with suitable businesses.
‘So while the decision is disappointing, as the board of the Jersey Telecom Group believes a sale is the right decision for the long term, it does have some positive spin-offs.
‘The uncertainty over the last few weeks has been unsettling for the staff and with any prospect of a sale delayed for the foreseeable future, it means that all Wave’s business contacts now have this uncertainty replaced by assurance.’
The decision to retain the telecoms company followed pressure from a scrutiny panel and from the union representing 400 staff.
Mr Ringsdore said it was business as usual and that Wave would continue investing in products and services for the island.
‘This has been demonstrated for example by our £7m. commitment to our Project Liberty cable link connecting the islands to the UK and the Continent and the introduction of Wave broadband to Guernsey’s domestic telecommunications
market.’
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