Airwave, the national police communications network, is set for a possible £2 billion sale after a decision by O2 to review the options for the business.

The Spanish-owned mobile operator has lined up banks to explore possibilities for the digital radio network, The Times has learnt.

The review process has yet to begin, but potential buyers are understood to be circling, despite concerns among health campaigners about the safety of the Tetra masts.

Private equity players are likely to be among those interested. The business offers recurring revenue streams in the form of its long-term contracts with the Government and other parties.

Airwave, which has more than 150,000 users, including all police forces in England, Scotland and Wales, has 150 separate contracts, including a £2.9 billion, 19-year contract signed with the Home Office in 2000.

Infrastructure-based businesses are in strong demand. The mast transmission business of National Grid, National Grid Wireless, is also attracting interested parties after the energy group’s announcement of plans to spin it-off.

Texas Pacific Group, owner of TDF, the former broadcasting subsidiary of France Télécom, is deemed one possible buyer for that business, along with big infrastructure funds.

Analysts believe that at present Airwave — which in 2005 secured earnings before interest, tax, depreciation and appreciation of £72 million, up from £1 million in the previous year — could fetch up to £2 billion if it goes on the blocks.

O2, spent about £800 million rolling out Airwave’s network of more than 3,000 masts, covering 99 per cent of mainland Britain.

The decision to review the business is a surprise. Last month, in its third-quarter results, O2 said that Airwave “remains a valuable part of the group”. It had talked about the business being rolled out into other countries after its acquisition by Telefónica, the Spanish group.

Airwave began life as part of BT when it won a Government contract in 2000 and was later sold-off.

A spokesman for O2 said that the group could not comment on rumour or speculation.

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