Mobile radio network services CMA investigation
First published by Author on July 06, 2022 in the following categories: Healthcare Industry Investigations and tagged with cma | healthcare | investigations | market study
The CMA has launched a market investigation into the mobile radio network services in respect of the infrastructure used by emergency services to securely communicate in Great Britain.
The investigation is looking into whether the current model and market for this niche industry works to achieve efficiency and cost-effectiveness in respect of the tax burden on the British treasury. Whilst an infrastructure system was reportedly established some 20 years ago on a long-term contract basis, given how bespoke the requirements of the system were, the CMA is looking into whether we are now in a time where other providers may be able to offer more cost-effective solutions.
About the mobile radio network services investigation
The CMA (Competition and Markets Authority) is engaged in a market investigation into the supply of mobile radio network services in respect of emergency services communications in Great Britain. The service is a network used for secure communications for the police, fire and emergency services, and it is understood that there is little or no alternative to what is currently being used.
The CMA stated that the original technology that was commissioned back in the year 2,000 was supposed to be reviewed in the last few years to see whether alternative solutions could be deployed. However, this appears to have been delayed, raising concerns as to whether these delays may be restricting the emergency services to one solution with no alternative. A worry is whether this could be costing taxpayers more than it should.
It was accepted that the original solution from over 20 years ago – given how bespoke it was – required a long-term and exclusive contract. However, now we are at a stage where technology is much more advanced, and many more companies could offer alternative solutions that are just as good and secure (if not better), these should be locked into.
This CMA investigation stems from a consultation dating back to July 2021 where it was debated as to whether mobile radio network services required a closer look. The CMA decided that the market for the supply of these network services in Great Britain was not working well enough and required further investigation.
In October 2021, the CMA officially referred the matter for a formal market investigation. You can read more about the CMA investigation matters here.
Latest updates
In December last year, an issue statement was released in respect of the mobile radio network services investigation. An invitation for relevant and interested parties to provide submissions and comments was issued.
Since then, a number of interested and relevant parties have issued statements, and an administrative timetable was updated in March this year.
The Competition Lawyers will be keeping an eye on this investigation.
Possible next steps
The ultimate aim of the investigation into mobile radio network services is to ensure that the market for secure emergency services communications allows for the best and most efficient use of taxpayer money.
Whilst this may be a bespoke service in a niche market, technology has advanced so much in recent years that many of the well-known consumer communications giants may be able to step into this market. They may be able to offer workable and secure solutions as an alternative to the current model and current infrastructure being used, and this could save money and reduce the burden on the British taxpayer.