2. The mandate for nationwide coverage translates into an emphasis on rural buildout. The Act requires FirstNet to establish a “nationwide” network for first responders through the development of RFPs that include “coverage in rural and nonurban areas.” However, the law does not otherwise specify the level of coverage that constitutes “rural.” In 2014, FirstNet published its first public notice (PN) proposing that the term “rural” should have the same meaning as “rural area” in the Rural Electrification Act (REA) of 1936, as amended, which would include cities, towns, or incorporated areas with fewer than 20,000 inhabitants that are not adjacent and contiguous to urbanized areas with more than 50,000 inhabitants. Several states have criticized this definition as inadequate to ensure ubiquitous state-wide coverage.
In response to several questions from senators representing rural states, Swenson stressed the importance of rural coverage to FirstNet’s mandate, describing FirstNet’s rural coverage as a significant basis for differentiation from commercial broadband services.
Given that the second public notice (2nd PN) released by FirstNet on Monday seeks to ensure that revenues in “opt-out” states are reinvested in the overall network to supplement the cost of deployment and operation in states that are sparsely populated, FirstNet will likely have to engage in some greenfield network construction in areas deemed uneconomic to serve by commercial carriers. To reduce costs, FirstNet could also seek to partner with rural entities, such as electric utilities with existing infrastructure that could be leveraged for the broadband network.