Motorola Slapped with Price Cap on Emergency Services’ Airwave Network Fees
The Competition and Markets Authority (CMA) is cracking down on Motorola, slapping a ceiling on charges it can bill the emergency services for using the vital Airwave Network. This move stops Motorola from raking in up to £200million a year too much since 2020.
Emergency Services Held to Ransom
- The CMA found Motorola had full control over pricing negotiations, forcing police, fire, and ambulance services to pay inflated fees.
- The Airwave Network is the dedicated, secure mobile system emergency crews rely on nationwide – with no alternative provider available.
- Motorola’s monopoly meant the Home Office had no real choice but to accept sky-high rates that ultimately hit taxpayers.
The CMA’s intervention means Motorola’s fees must now align with what a healthy, competitive market would charge. The price cap will last until 2029, with a review scheduled for 2026.
Why the Price Cap?
The original Airwave contract, awarded back in 2000, was supposed to end around 2020 when the shiny new Emergency Services Network (ESN) would take over. But delays mean the ESN isn’t expected until at least 2026 – more likely 2029 – leaving emergency services stuck with Airwave.
By the original contract’s end, Motorola should have recouped its investment, and charges should’ve dropped, like mobile users paying less once their handset is paid off. But prices stayed stubbornly high.
Martin Coleman, Chair of CMA Investigation, said:
“Our emergency services have to use the Airwave Network to protect the public and themselves. When the original contract period ended, there was no alternative provider, so Motorola held all the cards on pricing.”
“Emergency services have been stuck in a monopoly, paying much more than in a properly competitive market. We hate imposing price caps, but it’s the only way to stop taxpayers footing an unfair bill while still letting Motorola make a fair return.”
What’s Next?
- The price cap cuts estimated overpayments by nearly £200m each year, saving taxpayers a fortune.
- It also discourages Motorola from dragging its heels on delivering the new ESN technology.
- Motorola can keep investing to maintain network quality and safety but at a fairer price.
- The CMA urges the Home Office to plan for a competitive marketplace once the cap ends.
The CMA launched its probe in October 2021 amid worries the emergency communications market wasn’t working properly. After proposing its findings last year, today’s final decision clamps down hard on Motorola’s monopoly grip.
For now, emergency services and taxpayers finally get some relief – but the long road to a modern, competitive network still lies ahead.
