FirstNet board approves release of draft RFP, ‘public-safety entity’ definition proceeding

At a fundamental level, the FirstNet business model calls for the organization to leverage four “value blocks”—$7 billion in federal funding, user fees, synergies gained by leveraging existing assets and the ability for FirstNet to monetize its excess network capacity—to offset the costs associated with deploying a self-sustaining nationwide broadband network for public safety, Kennedy said..

“Based on our modeling that we’ve done to date and the value blocks that we’ve listed here, we believe the value is there to create a sustainable, self-supporting network and that that the ongoing viability of FirstNet will work,” Kennedy said, noting that “monetizing excess network capacity is the key to making FirstNet sustainable.”

In fact, while it may take some time to get public-safety entities to subscribe the network and build up user-fee revenue, FirstNet hopes to be able to generate revenues from its spectrum—a 10×10 MHz swath of prime 700 MHz airwaves—quickly, Kennedy said.

“Over time, we’re expecting that there would be a fixed payment to FirstNet that would include the excess-network-capacity value,” he said. “It’s not exactly a spectrum auction, because we’re maintaining full control of the spectrum and leveraging all of it for public safety. But we want to make sure that we leverage that excess network capacity in what it called a covered leasing agreement.

“We have the flexibility to work with offerers about when those payments would come in over time.”

Kennedy outlined plans for FirstNet to deploy its network in five phases—as well as two expansion phases—each of which would include buildout components in rural areas. FirstNet board member Tim Bryan applauded the plan.

“I think this balanced approach will serve our first responders best,” Bryan said during the meeting. “I really endorse the notion that we can attack the rural areas with an equal amount of vigor as the urban and suburban areas.”

Kennedy said FirstNet wants to gauge potential partners’ interest within two primary options: a nationwide proposal that would include a nationwide core network, a covered leasing agreement and a radio access network (RAN) for all of the states and territories; or a regional RAN proposal that would cover a state or group of states with a covered leasing agreement and a RAN throughout the territory.

“We’re seeking comments and feedback—and capability statements—from offerers for whether they think they can respond to a nationwide proposal or a regional RAN proposal and how to optimize that best for public safety,” Kennedy said during the meeting.

During a press call after the board meeting, Kennedy said that “one of the biggest things we’re doing is looking for is competition” by pursuing both the regional and nationwide interest from potential partners.