Alabama issues RFP for public-safety LTE RAN network, says it has not made opt-out decision

“The Spectrum Act … authorizes states that construct their own networks to enter into spectrum leasing agreements with secondary users, so long as those leasing agreements result from a public-private arrangement to construct, manage, and operate the network,” according to the Alabama RFP. “Such agreements may permit users to access network capacity on a secondary basis for non-public safety services in return for the payment of a spectrum leasing fee. The Spectrum Act does not require states to return the profits from any such spectrum leases to FirstNet. Rather, the Spectrum Act explicitly authorizes states to use ‘revenue gained by the State from such a leasing arrangement’ for the purpose of “constructing, maintaining, operating, or improving the radio access network of the State.’

“The Spectrum Act does not explicitly authorize states to collect network user fees from the public-safety users of their state PSBNs or to collect lease fees from entities seeking access to the state’s PSBN equipment or infrastructure (although it does authorize FirstNet to do so with respect to the nationwide PSBN). However, the Spectrum Act also does not prohibit states from collecting network use or lease fees, or from reinvesting revenue generated by such fees back into the state’s PSBN. Nothing in the Spectrum Act appears to require states to remit such revenues to FirstNet.”

In addition, the Alabama RFP also calls for bidders to explore the possibility of transforming 12 MHz of 700 MHz narrowband spectrum to broadband use—a stipulation that the state of New Hampshire also included in it procurement.

“Regardless of whether a state opts into FirstNet, a state, local government, or eligible nongovernmental organization (NGO) may also retain for their use any revenues generated from their operation of a public-safety network using the 12 MHz of dedicated narrowband frequencies,” the Alabama RFP states, noting that law creating FirstNet does not mention these narrowband airwaves.

“The Spectrum Act therefore does not restrict in any way the operations of 700 MHz public safety narrowband licensees, the manner in which they choose to collect revenue, or how they elect to use such revenue. Moreover, neither the authorizing statute for narrowband public safety services nor the FCC’s rules for narrowband operations impose restrictions on the collection or use of revenues associated with the operation of public safety narrowband networks, other than to require that licensees may not make public-safety services commercially available to the public.”

A copy of the Alabama RFP is available at http://www.alea.gov/Home/wfContent.aspx?ID1=plhHomePage-RequestForProposal.