Clawback of additional revenue from sharers

24. In offering a price for Airwave, 02 assumed that other organisations would join the service and modelled the probable additional income. 02's financial modelling had indicated additional revenues of between £1.8 million and £5.5 million a year, which had been taken into account in the negotiations with PITO. Nevertheless, under the contract with 02, the Home Office will not get anything back if higher than expected numbers of sharers join the system. The deal with 02 was that it would take the risk if sharers fell below what it was expecting and would take all the gain from a higher than expected number of extra users. The size of any gains would depend on the deals struck with the sharers, most of whom were likely to be publicly funded services (Figure 4).²²

Figure 4: Potential extra users of Airwave
Civilian Emergency Services British Transport Police Ports Police UK Atomic Energy Authority Constabulary Borough Parks Police Waterway, Tunnel and Airport police Fire Brigades Airport Fire Brigade Air Ambulance NHS Community Trust Staff NHS Hospital Trust Staff Private Ambulance Services Donor organ and transplant team transport Patient Transport Services Coastguard Service Air and Land Search and Rescue Services	Ministry of Defence Organisations MOD Police Navy Police Royal Parks Constabulary RAF Police Royal Marines Police Royal Military Police Adjutant Generals' Corps - Provost Branch Defence Fire Service Army Fire RAF Fire Navy, Army and RAF Ambulances Firing Range Security Armed forces bomb disposal teams HQ London (Army regional Brigade) Intelligence Corps RAF Nuclear Accident Response Organisation Security Services Special Forces
Other public safety and emergency response services
CCTV control rooms (under certain circumstances) Prison Service Private Prisoner Transport Privatised Police Patrols (including stadia and complexes) Post Office Security and Investigation Service Customs and Excise enforcement branch and National Investigation Service EA Environmental Crime Unit Environment Agency Enforcement Officers UK Immigration Service - Ports and Enforcement Directorate National Nuclear Accident Response communications System	Traffic Wardens Nuclear Accident Authority On Site Fire Services (Magnox and BNFL sites) Volunteer First responders Fraud Investigation Section of Department of Social Security Home Office Fire and Emergency Planning fire appliances and assigned personnel Immediate Care Schemes (eg. BASICS) Inland Revenue Special Compliance Office Local Authority Emergency Planning Departments

source: C&AG's Report

25. In response to a question on whether Airwave would generate further income from sales to other countries, 02 explained that its approach was to deliver the service in the UK, establish a track record and then look to expand into other areas. A number of countries in Europe had committed to the TETRA standard but had not yet chosen a particular service provider. The same was true in other parts of the world, such as Africa and Australasia. From 02's perspective, overseas sales were a possibility but only once Airwave had been successfully delivered in the UK. 02 had been prepared to discuss sharing the rewards from other parties if the Home Office could bring those other organisations on board. For its part, the Home Office would have liked to have achieved a better deal on sharing the rewards from the wider use of Airwave, but was unable to move 02 during the commercial negotiations.23

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22 C&AG's Report, para 1.35; Qq 78, 80

23 Qq 116, 205-209