Motorola Capped Over Emergency Services Airwave Charges
The Competition and Markets Authority (CMA) is slapping a price cap on how much Motorola can charge the emergency services to use the crucial Airwave Network.
Motorola’s Monopoly Means Huge Overcharges
- Since 2020, emergency services have paid nearly £200 million a year more than they should, thanks to Motorola’s grip on pricing.
- With no alternative providers in sight, Motorola “held all the cards” in negotiations.
- The CMA’s new price control aims to stop taxpayers footing the bill for Motorola’s inflated charges.
The Airwave Network is the dedicated mobile system police, fire crews, and paramedics rely on to communicate securely. It was built under a contract starting in 2000, which was supposed to end by 2020. By then, its replacement—the Emergency Services Network (ESN)—was expected to take over. But delays mean ESN won’t be ready until at least 2026, possibly as late as 2029. That leaves emergency services stuck dealing with a monopoly provider.
Originally, prices included the costs for building the network, meaning charges should have dropped sharply once those costs were recouped—just like phone contracts get cheaper once you’ve paid off your handset. But they didn’t. Motorola kept prices sky-high, with no competition to force them down.
Price Cap to Slash Excess Costs
“Our emergency services have to use the Airwave Network to protect the public and themselves. When the original contract period for the Airwave Network came to an end, there was no alternative provider so Motorola held all the cards when it came to pricing,” said Martin Coleman, chair of the CMA’s independent inquiry group.
“As a result, the emergency services are locked in with a monopoly provider with no option but to pay a much higher price than they would if the market was working well. We are generally reluctant to impose price controls, but the particular circumstances of this case mean that a price cap is the only effective way of ensuring the emergency services, and the taxpayers who fund them, aren’t paying considerably over the odds. The cap will end the supernormal profits that Motorola has been making while allowing it to make a fair return.”
The charge control will force Motorola to lower prices to what a competitive market would charge, saving nearly £200 million a year. It also cuts Motorola’s incentive to drag its feet on rolling out new technology or switching over to the ESN.
The price cap kicks in later this year. It’s designed to protect quality and safety while trimming Motorola’s fat profits. The CMA will review how it’s working in 2026.
Looking Ahead: Competition After the Cap
While the cap is a short-term fix, the CMA wants a long-term solution. It has urged the Home Office to develop a plan for fair and competitive pricing once the cap expires. The goal: make sure emergency communications stay reliable, affordable, and competitive in the future.
This probe began in October 2021 amid worries the market was failing emergency services. The CMA shared its provisional findings in October 2022 and has now made its final ruling.
