The panel is grateful for having received a briefing from the Minister and his officers on this, what
is, I think for some, may be quite complex language, but it certainly ... I think after 2 attempts, I at
least half understood what was being proposed, notwithstanding the fact that I used to work for Jersey
Telecom. I do not know if that gives any reassurance. But more importantly, I think I understood
the politics of what was going on, if I could not necessarily write a paper on it. Essentially here we
understand that global titles, the way that they are used, these mobile numbers, which can be leased
out and then sub-leased again, has given rise to security concerns. We understand that Ofcom
certainly are looking to clamp down on that and we understand that Jersey and the operators over
here understand that. I do have a few questions that I would put to the Minister or a question that I
would seek comment on behalf of the panel for during this debate, just with regard to perhaps the
financial impact that it may have had or may be having on the revenues of those companies. The
panel notes that at the end of 2024, Ofcom discovered that it lacked the necessary legal authority to
continue its longstanding role of allocating telephone numbers in Jersey and other Crown
Dependencies. This prompted the need of Ofcom to be provided with the necessary legal framework
to allow it to continue allocating telephone numbers and the subsequent drafting of these regulations.
Of course, that is the other big part of this legislation. The amendment that is coming forward today
is that, of course, that in order for Jersey to continue to be able to use the +44 and allocated numbers
that go with that, that there needs to be this underpinning. The panel understands that there are
serious implications arising from the absence of the necessary legal framework including, most
notably, Ofcom being unable to issue new telephone numbers to Jersey, limits on the regulator’s
authority to safeguard telecoms security and impacts on any upcoming telecommunications
infrastructure projects, with the example of the Co-op mobile service. The panel also notes that this
telephone numbering issue impacts on all Crown Dependencies, and the Minister noted within the
accompanying report that the Government of Jersey and the Isle of Man Government has also
participated in the engagement process. We also understand that Guernsey and the Isle of Man were
progressing their own solutions. So we understand that while Ofcom will be responsible for
allocating numbers, the J.C.R.A. will remain the regulatory authority holding the core regulatory
responsibilities, and that recourse could be sought through the J.C.R.A. Ofcom remains responsible
for the allocation and withdrawal of telephone numbers, but the J.C.R.A. will hold responsibility for
regulating telephone numbers in Jersey and, where necessary, can make recommendations for
Ofcom’s action. The panel did have some concerns, which we put in our comments. We requested
a follow-up briefing from government officials, which took place on 10th September, after we
identified the issues of global titles as requiring further consideration and clarification given the risks
they pose for Jersey. During the briefing, we heard that since Ofcom’s ban on the leasing of global
titles to third parties, and with the draft regulation enabling the J.C.R.A. to impose similar conditions
on third parties in Jersey, the risks are being addressed. On this basis, the panel is satisfied that the
risks associated with global title leasing are effectively mitigated both through Ofcom’s prohibition
and the new powers that the draft regulations, if adopted, would provide to the J.C.R.A. The panel
also understands, just in concluding, that we are supportive of the need for these regulations to
provide Ofcom with the legal framework to continue issuing and allocating telephone numbers in
Jersey as a continuum of its longstanding practice. Furthermore, my panel also recognises the risk
to both service delivery and security should the legal framework not be implemented. The panel does
consider it important to note its concern that the legal anomaly that the draft regulations aim to
address went undetected for so long. We would maybe ask the Minister, in his summing up, to speak
to that point as to why it took so long to find out that there was this issue. It was only brought to the
Minister’s attention by Ofcom. This is a matter that the Minister, as I said, hopefully will address in
the summing up. Otherwise, the panel is supportive and content that the J.C.R.A. is a local regulator
and will retain core regulatory responsibilities. Members, of course, may wish to consider the
relationship between Ofcom and the J.C.R.A. themselves and ultimately consider what real autonomy
Jersey has in terms of its number allocation. I just put those comments out there for potential fuel
for the debate. There is also just one question I was wanting to ask the Minister, and it really relates
to the fact that certainly until our attention was drawn to the changes that were happening globally in
global titles ... of course, we understand the rationale for having to cease global titles. One of the
questions we did ask, because the answer came back that while global titles leasing has been quite
standard in the industry and it provides a good revenue base, it is often the subleasing and then
subleasing again. So companies and governments, especially security agencies, do not know who is
ultimately behind the services that are being provided. So those services can be used for all sorts of
potential nefarious purposes to track individuals, to spam people, but also to defraud people. It
becomes very difficult to trace. So this is part of a global clampdown on those nefarious practices.
But of course we did ask, well, why cannot you simply ban the subletting of these global titles rather
than just the initial letting? The answer we got was, which we understood, that it becomes very
difficult. You cannot really stop subleasing and then the subsequent subleasing. So that is why
Ofcom are just saying no, this practice has to stop. But in its response to the consultation last year,
Jersey Telecom, for example, did put a response. Their point 4.63 in their submission said that:
“Lessors currently generate revenue from leasing global titles. A ban on global title leasing will
therefore result in the loss of these revenues. Although these revenues could currently be large for
some lessors, the relevant net impact on lessors is likely to be significantly lower for the reasons
below. This is likely to impact or possibly remove revenues from the M.V.N.O. (mobile virtual
network operators) vertical and, more importantly, squeeze this high volume/low margin business if
intermediate technical solutions are introduced. These costs are likely to be passed on to the
M.V.N.O.s to the end customers. Possible alternatives could provide an unfair advantage to large
U.K. M.N.O.’s due to scale and make M.V.N.O. propositions unattractive for smaller players.” Our
concern, and I suppose this is partly understandable due to the sensitive nature and the security nature
of what is going on here, and also the fact that this only came to our Scrutiny Panel quite late, I think
both as a panel, but also as a private Member and a citizen in Jersey, I would ask what analysis has
been done of the financial impact that this has had, both on the companies themselves. We know
that we are in a situation in Jersey where there used to be 3 mobile network providers, and one of
them is - I think it is common knowledge, is it not - is going out of the market. So we have Jersey
Telecom, which is an entirely States-owned company left, and we have Sure, which is another big
player in the market. We know that, of course, in addition to this, there have also been other pressures
in terms of hardware changes in terms of legislation about what kind of hardware is allowed to be
used for security reasons. It seems in a time when we are all being mindful of economic
competitiveness and the security of our wider economic viability in the Island, that this does not seem
to have gathered any comment in the public realm about (a) what impact this is having on those
businesses, and secondly, I think we should all be concerned as part of shareholders, if you like,
through the Minister for Treasury and Resources, in Jersey Telecom and also through the fact that
the other utilities give tax revenue to the States’ coffers, about whether or not we are going to see
reduced taxes and reduced shareholder revenues from this. If it is possible for the Minister to speak
to any of that and to indicate either what analysis has been done to date on that, and if none, why not?
And what analysis might be done in the next few years to see the impact of this. Essentially, it is a
necessary imposition from the U.K. and elsewhere. So the panel does not disagree with what is being
done, but we do have to be very realistic that this will have potentially unintended financial
consequences for the Island’s telecom market.