This Is Guernsey

By Nicci Martel

THE way Cable & Wireless Guernsey has dealt with other operators has been inappropriate, according to a report published by the Office of Utility Regulation.

A study into the company’s wholesale business has highlighted significant failings in a number of areas where it has not met its obligations to other providers.

OUR director-general John Curran (pictured) said the results were very disappointing. ‘The review found several contributing factors to an environment with C&W which, whether by design or intent, disadvantages other telecoms operators,’ he said. It has highlighted the need for substantial structural changes at C&W.

‘It has had several years to adapt to a competitive environment where other telecom operators are treated as customers. The results of this review suggest it has been reluctant to change and has failed to develop a sufficiently commercial culture in the organisation.’

But C&W has reacted with astonishment to the OUR’s attitude.

Peter Stahelin, director of legal and regulatory affairs, said: ‘The document is described by the OUR as a consultation document for comment.

‘The highly-charged and aggressive rhetoric contained in the OUR’s press release and John Curran’s selective interpretation of the report clearly indicates that he has already made his decision and I just don’t think that is an appropriate standpoint for a supposedly neutral party.

‘The consultants looked in detail at a number of complaints made by other operators and in most cases either dismissed them as baseless or accepted that Cable & Wireless’s position had been correct.

‘In a third of these instances the consultants found no fault with the company, but put forward proposals for improvements. Only two of the 13 complaints were supported by the consultants.’

Among the report’s findings was that the company’s wholesale customers, which includes Wave Telecom, Newtel and Airtel, received a significantly poorer response from C&W’s wholesale arm than its retail customers.

Also, wholesale customers’ information can be readily and easily accessed by retail staff and the incentive structures, through bonus packages and penalties for failing to meet delivery targets, favoured the company’s retail business.

The review also found there to be a large level of distrust between it and other licensed operators.

The OUR has set out a number of recommendations to address the issues.

‘The option to roll-back the scope of regulations is directly related to assurances there are safeguards in place to ensure competitors to C&W’s own retail arm are treated fairly and the level of service offered to them is appropriate. Clearly, this doesn’t exist at this time,’ said Mr Curran.