Excess profits on Motorola's Airwave estimated to be £1.3B
The UK's competition watchdog has estimated Motorola could make nearly £1.3 billion in excess profits over a decade owing to its position as a supplier of the Airwave legacy blue light wireless comms network.
As part of a consultation discussing"charge controls" over Airwave, which was founded in 2000, the Competition and Markets Authority said the US telecoms and network giant was set to make"supernormal profits of around £1.27 billion from the operation of the Airwave Network between 1 January 2020 and 31 December 2029."
In its latest report on the subject, the CMA has ruled that features of the market for the communications network created an"adverse effect on competition" which gives Airwave Solutions – owned by Motorola Solutions – the"ability to price services above levels the CMA would expect to prevail in a competitive market and results in a detrimental effect on customers."[PDF] for consultation.
"It will, nonetheless, give Airwave Solutions and Motorola Solutions the opportunity to recover their reasonable costs of providing the services and to earn a reasonable level of profit in doing so, i.e. the level of profit that would be expected in a well-functioning market," the CMA said.
Danmark Seneste Nyt, Danmark Overskrifter
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