Airtel and JT are holding talks that could lead to a merger of their operations in Jersey and Guernsey, it emerged this week.
Under the terms of the deal under discussion, Airtel would take a strategic minority interest in JT, but the Jersey government would retain majority control, JT confirmed.
No financial or other details were disclosed. The companies said they will make further announcements in due course.
"The merged entity would offer significant benefits to consumers, employees, the local economies and shareholders," JT said, in a statement.
Those benefits will include better network coverage and speed as a result of the integration of the two companies’ networks and a reduction in the number of cell sites. The firms also said a merger would enable them to boost customer care, build economies of scale, and focus on innovation.
JT and Airtel are two of three mobile network operators in the Channel Islands, the other being Batelco’s Sure. Airtel operates a co-branded service in partnership with Vodafone.
Any merger between Airtel and JT would require the approval of the Channel Islands Competition and Regulatory Authorities (CICRA) as well as the green light from both companies’ shareholders. JT would also need the approval of the States of Jersey.
"In the event that the discussions are fruitful, the parties would be seeking to secure these approvals as soon as practicable," JT said.
