{"id":24520,"date":"2020-10-23T11:09:36","date_gmt":"2020-10-23T10:09:36","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=24520"},"modified":"2020-10-23T11:09:36","modified_gmt":"2020-10-23T10:09:36","slug":"ofcom-raise-esn-linked-competition-case-with-motorola-and-sepura","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2020\/10\/ofcom-raise-esn-linked-competition-case-with-motorola-and-sepura.html","title":{"rendered":"Ofcom Raise ESN Linked Competition Case with Motorola and Sepura"},"content":{"rendered":"<p><a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a> UK has today given notice to Motorola and Sepura of a proposed infringement decision, which provisionally finds that the pair &#8220;<em>broke competition law by exchanging competitively sensitive information<\/em>&#8221; in relation to a contract for the continued operation of Airwave, the existing Emergency Services Network (ESN).<!--more--><\/p>\n<p>At present the emergency services (police, fire, ambulances etc.) communicate via the Motorola-owned <strong>Airwave<\/strong> network, which is believed to cost the UK around \u00a33bn and harnesses the <strong>TETRA<\/strong> (Terrestrial Trunked Radio) network technology. However, TETRA is slow (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/dialup\">dialup<\/a> like data speeds but it could go a bit faster with upgrades) and expensive, although it does deliver excellent voice coverage (c.97% geographic reach).<\/p>\n<p>The TETRA network was due to be retired some years ago as part of the Government&#8217;s effort to replace it with a modern <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/4g\">4G<\/a> mobile powered ESN, but that has been beset by delays and cost overruns (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2020\/09\/new-4g-emergency-services-network-faces-another-2-year-delay.html\">here<\/a>). As such it has become necessary to keep the Airwave network running for several years longer than planned.<\/p>\n<p>In keeping with that the <strong>Police ICT Company<\/strong>, in 2018, ran a procurement exercise to address a potential shortfall in TETRA devices, accessories and services. Sepura provides some of the handsets and equipment for use with the Airwave network and thus was a natural bidder for such a contract. The other potential supplier was Motorola itself.<\/p>\n<p>However, <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/link\/ofcom\" target=\"_blank\">Ofcom<\/a> has provisionally found that, between 5th September 2018 and at least 18th September 2018, &#8220;<em>senior employees<\/em>&#8221; at Motorola and Sepura exchanged information on strategic pricing intentions for the tender run by the Police ICT Company.<\/p>\n<blockquote class=\"bq1\"><p><a href=\"https:\/\/www.ofcom.org.uk\/about-ofcom\/latest\/bulletins\/competition-bulletins\/open-cases\/cw_01241\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Ofcom&#8217;s Statement<\/strong><\/a><\/p>\n<p>Our provisional finding is that this exchange of information restricted or distorted competition in the supply of TETRA devices, accessories and services for use on the Airwave network.<\/p>\n<p>We have also provisionally found that this exchange of competitively sensitive information occurred in a highly concentrated market, where Sepura and Motorola were effectively the only two competitors.<\/p><\/blockquote>\n<p>The regulator has now invited both companies to respond to their findings before a final decision is made on whether or not competition law has been broken.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ofcom UK has today given notice to Motorola and Sepura of a proposed infringement decision, which provisionally finds that the pair &#8220;broke competition law by exchanging competitively sensitive information&#8221; in relation to a contract for the continued operation of Airwave, the existing Emergency Services Network (ESN).<\/p>\n","protected":false},"author":1,"featured_media":24522,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[61,405,60,38],"class_list":["post-24520","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-4g","tag-ee","tag-mobile-broadband","tag-politics"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - 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