06 March 2023

Competition and Markets Authority (CMA) delays until March its final decision on Motorola Solutions’ Airwave TETRA network pricing.

In its provisional decision in October, the CMA proposed pricing regulations that would cut some $1 billion from the Airwave revenue that Motorola Solutions would receive under the current four-year contract that was signed in 2021 with the UK Home Office.

The CMA has determined that Motorola Solutions has been realizing ‘supernormal’ profits from its Airwave contract extensions with the Home Office. To correct, CMA’s provisional decision proposes limiting Motorola Solutions’ annual revenue from Airwave to less than £200 million, less than half of the £433.5 million in revenue that Airwave reported in 2020.

“We remain unchanged in our finding and belief that with full conviction that their (CMA officials’) effort is disproportionate, it’s unprecedented, it’s overreaching,” said Motorola Solutions CEO Greg Brown. He previously said that Motorola Solutions is prepared to “exhaust every legal opportunity or avenue in front of us to defend the position,” if the company disagrees with the outcome of the CMA investigation.