Sure questioning iPhone contracts

A Jersey mobile phone firm has written to the island's competition watchdog to ask if one of its competitors is allowed to offer 18-month contracts.

Jersey Telecom (JT) and Sure, operated by Cable & Wireless, have both announced they are to sell 3G iPhones.

JT is offering its iPhones with an 18-month contract, but Sure is asking the Competition Regulatory Authority to clear up rules over contract lengths.

The authority put pressure on to stop 18-month contracts in 2006.

'Sour grapes'

The authority said in 2006 it had concerns that customers with long contracts who could not change network would affect competition.

Sure company spokesman Steve Smith said of JT's latest move: "As far as we're concerned, and as far as we're aware, they're not allowed to do that, so we've just asked for some clarification.

"I'm not a regulatory lawyer, the but JCRA put these restrictions in force to ensure there is a competitive market place."

David Viera, from Jersey Telecom, said Sure's letter to the regulator sounded "a little bit like sour grapes".

He said: "In July of this year we announced to the regulator of our intention to bring in one-month and 18-month contracts, alongside our existing 12-month packages.

"The regulator did not object to that, and neither did any other operators".

The JCRA said it could not comment on matters that may currently be before it.

The Apple iPhone has only been available to buy abroad, and in the UK it is tied to the O2 phone network which does not work in Jersey. (from BBC news)

I must admit the 18 month contract is a joke, if your phone fails after twelve months you then have to buy a phone at FULL cost to be able to run the rest of your contract...