CMA launches probe into Motorola's role in emergency radio systems

The competition regulator has opened an investigation into Motorola Solutions, it announced on Monday, amid concerns that the company is both the owner of the existing ‘Airwave’ radio network used by UK emergency services, and is a key supplier in the planned new ‘Emergency Services Network’ (ESN).

In July, the Competition and Markets Authority (CMA) opened a consultation, setting out concerns over the impact of Motorola’s dual role.

It said on Monday that, after considering evidence and reviewing responses to the consultation, an independent group would now investigate the sector and decide if there were problems, and if so, put in place appropriate solutions.

The CMA said it was concerned that the market for the supply of the mobile radio network used by all emergency services in Britain may not be working well, resulting in a more expensive service for customers and, ultimately, the taxpayer.

It said the reasons for that included insufficient information, particularly in relation to the projects and associated costs needed to maintain and refresh the current network, being provided to the Home Office in negotiations on the pricing of the Airwave network.

As a result of that, and the importance of the Airwave network for public safety in Britain, the CMA said the Home Office was in a “weak bargaining position”, and was unable to secure value for money.

Due to Motorola’s dual role, Motorola had an incentive to delay or shape the roll-out of the ESN to its advantage, given the significant profits it currently receives from operating the Airwave network.

“As the sole provider of critical mobile radio network services used by our emergency services, we’re concerned that Motorola could be cashing in on its position, leaving taxpayers to cover the cost,” said the CMA’s chief executive officer Andrea Coscelli.

“We’re now referring this market for a full investigation so that we can thoroughly examine these concerns and, if necessary, take action to address any problems.”

The CMA noted that the Airwave network was commissioned by the Home Office in 2000 and the agreement was due to end in December 2019.”

At that point, the network was expected to be shut down and replaced with the ESN, which was designed to be a new, secure communications product using a commercial 4G mobile network.

It said Motorola gained its dual role by purchasing the Airwave network in February 2016, two months after it had entered into a contract with the government to provide software for ESN.

The merger was cleared by the CMA at the time, in part because of the general expectation that the Airwave network would be shut down by 2019.