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LAND MOBILE RADIO

--------------------------------------------------------------------------------

NEWS


CMA PLANS TO RELEASE AIRWAVE PRICE-CONTROL ORDER BY END OF JULY, IMPACTING
MOTOROLA SOLUTIONS


 * Written by Donny Jackson
 * 7th June 2023

 * 
 * 
 * 
 * 
 * 

An order that would set price controls on the Airwave TETRA network that would
cost Motorola Solutions more than $1 billion is expected to take effect within
the next two month, although Motorola Solutions has indicated that its appeals
likely will delay the effective date until next year.



Last month, the UK Competition and Markets Authority (CMA) released a timetable
on its website that calls for the order—calling for price controls designed to
remedy Motorola Solutions’ “supernormal” profits from Airwave—to be issued
during the latter portion of June or in July. Under UK statutes, the CMA does
not need to implement remedial action on the matter until Oct. 4, according to
the timetable.

“The charge control will be applied from the commencement of the Order on a
forward-looking basis,” according to the CMA’s draft explanatory note. “Airwave
Solutions and Motorola Solutions will be required to comply with the charge
control when setting relevant charges. The existing contractual pricing
arrangements [associated with Airwave, including a four-year contract extension
that began this year] … are amended and supplemented by the terms of the Order.”



This draft explanatory note was released last month in conjunction with the
initiation of a public-comment process that is scheduled to conclude next
Friday, June 16.

In April, the CMA concluded its 18-month investigation, issuing a final decision
that called for the implementation of price controls on the Airwave TETRA system
that provides mission-critical voice communications to UK public-safety
agencies. As outlined in the final decision, the new pricing plan would reduce
Motorola Solutions’ projected revenues from the Airwave system by more than 40%
during the next several years.

The fact that Motorola Solutions continues to collect any revenues from Airwave
TETRA operations is the result of the UK Home Office’s inability to complete the
Emergency Services Network (ESN)—the promised LTE-based replacement for
Airwave—by the end of 2019, when the original Airwave contract expired.

Instead, deployment of the ESN has proven elusive, with the UK nationwide
public-safety broadband system currently not targeted to be complete until the
end of 2029.

In the meantime, UK public-safety agencies need the Airwave radio system to
continue providing land-mobile-radio (LMR) communications that deliver
mission-critical voice services. As a result, the UK Home Office signed a
three-year Airwave contract extension that expired at the end of 2022 and the
four-year extension that took effect in January and will be supplanted by the
CMA’s order.

In addition to being the owner of the legacy Airwave TETRA network, Motorola
Solution served for several years as a primary vendor in the UK Home Office’s
development of the ESN. Notably, Motorola Solutions was responsible for
delivering the broadband push-to-talk application that would replace the Airwave
PTT, as well as the critical interworking solution that would let Airwave users
and ESN users talk to each other while UK public-safety agencies make the
proposed transition from the Airwave TETRA system to the ESN broadband network.

But Motorola Solutions no longer is part of the ESN initiative, announcing last
fall that it would not continue to have an active role in the ESN. However,
Motorola Solutions still is supposed to provide an interworking solution and
provide other transitional support to a new vendor that has not yet been
selected by the UK Home Office.

Some UK officials have expressed concern that Motorola Solutions has delayed its
delivery of key applications to keep UK public-safety agencies reliant on
Airwave. The CMA expressed hope that its Airwave price controls would reduce the
possibility of this scenario happening with the internetworking solution.

“To the extent they will no longer be earning supernormal profits, the charge
control will also reduce Airwave Solutions’ and Motorola Solutions’ incentives
to delay the delivery of an interworking interface solution—required to
facilitate the transition of users from the Airwave Network to a replacement
network—and thereby to prolong the operation of the Airwave Network,” the CMA’s
draft explanatory note states.

Motorola Solutions officials repeatedly have expressed opposition with the CMA’s
findings and expressed the company’s intent to appeal. In an SEC filing last
month, Motorola Solutions stated that “the appeal process is expected to extend
throughout 2023.”

 


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Mobile Radio Long Term Evolution (LTE) News Policy Public Safety Public-Safety
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Δ


RELATED CONTENT

 * CMA releases full decision costing Motorola Solutions more than $1 billion in
   Airwave revenue
 * Motorola Solutions says Airwave price controls unlikely to be effective this
   year
 * UK looks to France for ideas to complete LTE-based ESN for first responders
 * UK officials acknowledge ESN risks, hope to complete public-safety broadband
   project by 2030
 * 


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 * 1
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27th February 2023


NG911 NEEDED TO SECURE OUR COMMUNITIES AND NATION

 *  * 
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24th February 2023
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13th May 2019
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