Motorola Solutions to Appeal CMA’s Unprecedented Final Decision

Rhea-AI Summary

Motorola Solutions (NYSE: MSI) has issued a statement opposing the UK Competition and Markets Authority's (CMA) decision to impose price controls on the Airwave network, acquired in 2016. The company intends to appeal this decision, citing it as an 'egregious overreach' lacking justification on competitive or legal grounds. Motorola emphasizes that the Airwave service has consistently performed at high levels and argues the CMA's actions could deter future investments. They have invested over $1 billion since the acquisition to maintain service quality, which supports over 300,000 emergency service professionals in the UK.

Positive

• Motorola Solutions invested over $1 billion in the Airwave network since 2016.
• The Airwave service operates at high levels of reliability and value for UK taxpayers.

Negative

• The CMA's price control could impact future investment and long-term contracts.
• The company faces potential legal challenges and financial implications due to the CMA's decision.

Company believes the CMA’s egregious overreach cannot be justified on competitive, economic or legal grounds

CHICAGO--(BUSINESS WIRE)-- Motorola Solutions (NYSE: MSI) today issued the following statement in response to the United Kingdom’s Competition and Markets Authority’s (CMA) final decision regarding its Mobile Radio Network Services market investigation. The CMA intends to impose a price control on Airwave, the private mobile radio communications network that Motorola Solutions acquired in 2016, altering a long-term contract that was mutually agreed, duly executed and is still in effect.

“Motorola Solutions strongly disagrees with the CMA’s final decision and believes it cannot be justified on competitive, economic or legal grounds. We will appeal the decision.

In 2016, the Home Office negotiated and agreed to the fixed price Airwave contracts, which were also provided to the CMA as part of the CMA’s approval of Motorola Solutions’ acquisition of Airwave. Despite the CMA finding no shortcomings in Airwave’s exceptional service, the CMA intends to forcibly reduce the contractually agreed pricing going forward. We believe this unprecedented overreach will have a chilling effect on long-term investment and contracting with the U.K. government.

Motorola Solutions is committed to vigorously protecting its contractual position in delivering the Airwave network, an essential service that operates at the highest levels and is relied upon by the 300,000 emergency services professionals who protect communities across the U.K. every day.”

About Motorola Solutions

Motorola Solutions is a global leader in public safety and enterprise security. Our solutions in land mobile radio communications, video security & access control and the command center, bolstered by managed & support services, create an integrated technology ecosystem to help make communities safer and businesses stay productive and secure. At Motorola Solutions, we’re ushering in a new era in public safety and security. Learn more at www.motorolasolutions.com.

Notes to editors:

• If Airwave is continued on the existing agreed terms until the end of its life in 2026, the Home Office will have enjoyed a better deal than it agreed to at the outset of the contract, and better terms than the U.K. government typically accepts even for non-mission-critical service contracts.
• The independent National Audit Office’s report issued on March 8, 2023 recognized that the Airwave network operates at the highest levels of reliability and coverage.
• The Airwave service delivers exceptional value for money for the U.K. taxpayer. Motorola Solutions has provided price reductions even while making significant investments - over $1 billion since 2016 - to maintain the network, which is relied upon by the U.K. emergency services every day and continues to function at the highest levels.

Forward Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable federal securities law. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates” and similar expressions. The company can give no assurance that any actual or future results or events discussed in these statements will be achieved. Any forward-looking statements represent the company’s views only as of today and should not be relied upon as representing the company’s views as of any subsequent date. Readers are cautioned that such forward looking statements are subject to a variety of risks and uncertainties that could cause the company’s actual results to differ materially from the statements contained in this release. Such forward-looking statements include, but are not limited to, the impact of the CMA’s decision regarding Airwave, including the financial and business consequences of legal actions taken regarding the contract for the Airwave network and Motorola Solutions’ actions in response to the decision. Motorola Solutions cautions the reader that the risks and uncertainties below, as well as those in Part I Item 1A of Motorola Solutions’ 2022 Annual Report on Form 10-K and in its other SEC filings available for free on the SEC’s website at www.sec.gov and on Motorola Solutions’ website at www.motorolasolutions.com, could cause Motorola Solutions’ actual results to differ materially from those estimated or predicted in the forward-looking statements. Many of these risks and uncertainties cannot be controlled by Motorola Solutions, and factors that may impact forward-looking statements include, but are not limited to: (i) the impact, including increased costs and potential liabilities, associated with changes in laws and regulations and administration determinations; (ii) additional compliance obligations and decreased revenues or increased risk, costs and competition associated with the expansion of our technologies within our Products and Systems Integration and Software and Services segments (including, but not limited to, with respect to the CMA's decision regarding Airwave); (iii) risks related to our large, multi-year system and services contracts (including, but not limited to, with respect to the Emergency Services Network and Airwave contracts); and (iv) the inability of our products to meet our customers’ expectations or regulatory or industry requirements or standards. Motorola Solutions undertakes no obligation to publicly update any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230404006127/en/

Media Contacts

Alexandra Reynolds

+1 312-965-3968

Alexandra.Reynolds@motorolasolutions.com

Elvan Lindberg

+46 (0)707448893

Elvan.Lindberg@motorolasolutions.com

Investor Contact

Tim Yocum

+1 312-576-6899

Tim.Yocum@motorolasolutions.com

Source: Motorola Solutions

FAQ

What is Motorola Solutions' response to the CMA's decision on Airwave?

Motorola Solutions opposes the CMA's decision and plans to appeal, arguing it lacks justification.

How much has Motorola Solutions invested in the Airwave network?

Motorola Solutions has invested over $1 billion in the Airwave network since its acquisition in 2016.

What are the implications of the CMA's price control decision for Motorola Solutions?

The price control may lead to reduced future investments and create legal and financial challenges for Motorola Solutions.

How many professionals rely on the Airwave network?

The Airwave network supports over 300,000 emergency service professionals in the UK.