SURE will be able to claim up to £6.167m from FIG for a loss of broadband revenue due to the introduction of cheaper VSAT licences.
The Falkland Islands Government (FIG) and Sure have reached an agreement to allow Sure to continue to discharge its universal service obligations under the exclusive telecommunications licence alongside a more permissive VSAT licensing scheme a press statement from FIG explained.
The agreement included FIG paying money to Sure to compensate for the loss of revenue it can demonstrate it was making before the introduction of widespread Starlink usage.
The statement from FIG explained that when making the agreement “Executive Council was alive to the fact that Sure had brought judicial review proceedings against the Government. Although FIG is confident in the lawfulness of its actions on VSAT licensing, a commercial settlement is considered preferable to a potentially long and resource-intensive legal route.” This was explained as something that could delay the new VSAT licensing regime. The agreement will “pave the way” for the re-opening of the VSAT licence applications.
The agreement means that judicial review will not proceed.
It was said that the detailed workings of the scheme are “commercially confidential” but for the remainder of the exclusive licence period Sure will be able to claim up to £6.167m, but the actual amount claimed will be dependent on Sure “evidencing losses against a pre-Starlink baseline.”
FIG explained that the “basis for these payments” is that previously there was “limited threat” to Sure’s business from VSAT usage “this position has now fundamentally changed as a result of the new VSAT regime.”
Additionally Sure will be launching two unlimited residential broadband packages on December 1 – priced at £50 and £115 which will replace the current packages on offer for new customers. While the extra small and small packages will be discounted completely, packages from medium upwards will still exist for customers currently on them who do not want to move to unlimited.
Due to the pricing structure change, and the cheapest available package being £50, Executive Council also approved a broadband support scheme for those currently on the smallest packages who are unable to afford the £50 unlimited package. FIG will subsidise this package at £20 a month for those households who will be eligible.
Further information on this, including eligibility criteria and how to apply will be released soon. It has been said that the support scheme will not be available for those customers who hold a VSAT licence.
The press statement concluded with the news that the Communications Regulator will now license Starlink to operate in the Falkland Islands and will reopen applications for personal VSAT licences at the lower fee rate and under the new policy.
It was said that communications about this will be issued separately.
