JT Group Limited - Miscellaneous

Miscellaneous

In 2006 the States of Jersey Council of Ministers proposed the sale of JT Limited. The States opened up this proposal to public consultation and commissioned reports from UK Telecommunications Consultants Analysys Mason, the JCRA and JT on the proposed sale. In addition the States' Scrutiny Panel also examined the issues surrounding the proposed sale. These reports were submitted to the States in February 2007 and tabled for discussion. After a brief debate the States decided to conduct a cost/benefit analysis on the proposed optional disposal configurations, including the break-up of the company. However, on 29 January 2008, following comments in the Scrutiny report and market uncertainty, the Minister for Treasury and Resources decided to withdraw the proposition and defer any debate for "at least 3 years". In the meantime a review of the JCRA's powers under Telecommunications (Jersey) Law 2002 was recommended and this was undertaken during 2008 by consultants LECG.

In November 2009 the JT board announced its restructuring plans that would require 20% to 25% reduction in workforce, blaming competition and the economic environment for the necessary efficiency changes. Up to 80 posts would be axed in addition to the 35 already announced through a voluntary redundancy scheme. The company also closed its Navitas subsidiary that had provided mobile connectivity to cruise liners as part of the restructuring. At the same time it announced that its CEO would be replaced early in 2010, the incumbent, Bob Lawrence, who had been at the helm of JT since 1991 would step down in favour of Graeme Millar, formerly Chief Commercial Officer of Mobile TeleSystems, the Russian mobile operator.

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