FirstNet cybersecurity demands just one area that potential opt-out states should weigh carefully

A similar scenario exists with other large enterprises (who may or may not be deemed “public-safety entities”) with operations that span multiple states—for example, utilities, transportation companies, delivery firms and Native American tribal nations. If these large enterprises contract directly with FirstNet or its contractor, the economic model for a contractor to build out an opt-out state will be impacted negatively.

Would the impact be so great that it would not be worth the contractor’s time to bid for the opt-out state contract? That’s for people much smarter than me to decide, but uncertainty about such key potential customer cannot help matters.

There is one other scenario that potential opt-out states should consider carefully. If FirstNet has a nationwide contract with a large enterprise, what obligations does the opt-out state have to help FirstNet meet the terms of that deal?

Let’s say the U.S. Forest Service—an entity that spends billions of dollars annually to fight wildfires—signs a nationwide subscription deal with FirstNet that includes certain service-level agreements. To provide the service level nationwide, FirstNet may need an opt-out state to invest more money into its RAN. And, because the new sites are located in the forest, there is little chance that opt-out state’s contractor will generate much commercial revenue from them.

How would an opt-out state—or its contractor—feel about funding additional LTE sites for its RAN that likely will not generate additional revenue for the opt-out state? My guess is that it would not be a popular topic of discussion. And similar scenarios can be conceived for federal or tribal lands, with the added complications of jurisdictional issues.

Now, it is possible that FirstNet and opt-out states could negotiate a business arrangement to address such matters, but that could take considerable legal resources and effort. It also would take time, which will not be on the side of a potential opt-out state. Remember, each governor will have only 90 days from the delivery of FirstNet’s state plan in which to make the opt-out decision.

Currently, three states have issued requests for proposals (RFPs), and sources indicate that as many as 10 more are considering taking similar action. Conducting such procurements makes sense from a due-diligence and preparation perspective—some argue that a completed RFP may be the only way a state can have any leverage during talks about the FirstNet state plans—but an entirely different set of criteria needs to be contemplated before any state or territory decides to pursue the opt-out alternative.

The importance of the FirstNet system to public safety cannot be overstated. With so much at stake, governors in the 56 states and territories should consider carefully all potential short-term and long-term ramifications before making their opt-out decisions. In this instance, a poor choice could result in first responders in the state having a subpar network, as well as possibly creating a very difficult operational and financial hardship in the state for 25 years.