Motorola rejects UK regulator’s claim of radio network-monopoly profit

BRITAIN’S competition regulator said on Friday (Oct 14) that Motorola Solutions’ monopoly for its emergency mobile radio communications services in the country led to high charges, boosting its profits, a claim the U.S-based company rejected.

The UK’s Competition and Markets Authority (CMA) said that a provisional assessment, after a probe last year, found the lack of competition allowed Motorola to make around £160 million (S$256.3 million) in excess profits a year.

Walkie-talkie maker Motorola rebuffed the CMA’s finding.

“Motorola Solutions entirely rejects the CMA’s unfounded and incorrect calculation of ‘excess’ profits, which is based on an arbitrary time period of the Airwave project,” a spokesperson for the US company said in an e-mailed statement.

The Airwave Network, owned by Motorola, is used by the British police and fire departments, besides other emergency services, and is expected to be relied upon until a new network, called Emergency Services Network, is ready.

“Our current view is that the Home Office and our emergency services are locked in with a monopoly provider which can charge much more than it could in a properly functioning market, while taxpayers foot the bill,” the CMA’s Martin Coleman said.

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The CMA recommended that the Home Office put in place a clear plan as soon as possible to ensure that a new, upgraded network was available and proposed price control on the Airwave Network to ensure lower cost for taxpayer.

Motorola, which bought Airwave network in 2016, said it would continue to work with the regulator but would also weigh any legal options necessary to safeguard its contracts. REUTERS