Motorola Slapped with Price Cap Over Emergency Services Network
The Competition and Markets Authority (CMA) has stepped in to slash how much Motorola can charge emergency services for using the vital Airwave Network.
Motorola’s Monopoly Cost Taxpayers Millions
- Since 2020, Motorola’s control has forced emergency services to overpay by nearly £200 million annually.
- With no alternative suppliers, Motorola “held all the cards” during negotiations, exploiting their monopoly.
- The CMA’s new price cap aims to cut costs and protect taxpayer money.
The Airwave Network is the dedicated mobile network crucial for police and emergency responders. Unlike regular mobile users, emergency services have no choice but to stick with Motorola’s Airwave, even after handset payments ended — yet prices stubbornly stayed sky-high.
Price Cap to End Motorola’s ‘Supernormal’ Profits
“Our emergency services have to use the Airwave Network to protect the public and themselves,” said Martin Coleman, chair of the CMA inquiry.
“When the original Airwave contract expired, there was no alternative provider. Motorola held all the cards. The emergency services were trapped, forced to pay inflated prices with no market competition.”
“We’re usually against price controls, but here it’s the only way to stop taxpayers footing the bill for massively inflated charges. The cap will cut supernormal profits but still allow Motorola a fair return.”
Charge Control to Hit Motorolas’ Prices by £200m a Year
The CMA’s charge control sets Airwave Network fees at competitive market levels. This means emergency services and taxpayers will see prices drop by almost £200 million a year.
It will also remove Motorola’s financial incentive to delay upgrading technology or slow down the switch to a newer network.
The price cap will keep emergency comms reliable and safe, letting Motorola continue network investment — but no more fatcat profits. It’s due to start later this year and will be reviewed in 2026.
Looking ahead, the CMA is urging the Home Office to develop a plan encouraging market competition when this price control ends. This will help ensure fair pricing for emergency networks long-term.
Background: CMA’s Probe Since 2021
The CMA investigated starting October 2021 amid concerns over overpriced services. After a provisional finding in October 2022, their final decision delivers a much-needed price crackdown on Motorola’s monopoly over emergency network fees.
