FirstNet takes first step toward getting down to business
While this approach makes sense, it is not clear whether FirstNet has the legal right to take excess money from a state or territory that has chosen the “opt-out” alternative that Congress included in the law that created FirstNet. The public notice that seeks comment on this subject and others associated with the relationship between FirstNet and “opt-out” states or territories.
(Editor’s note: The “opt-out” term in the law is an unfortunate one, because many people—understandably—believe that it means a state has the right to opt out of public-safety broadband and FirstNet entirely. That is not the case. Even if a state chooses the “opt-out” alternative, it still must build a radio access network (RAN), connect to the FirstNet core network and meet FirstNet’s interoperability requirements. In the public notice, these “opt-out” states are referenced as “states that assume RAN responsibilities.” It’s a much more accurate description, but it is cumbersome. Someday, maybe we can agree on a shorter term that everyone understands, like “RAN states.” Until then, we’ll continue to use the “opt-out” term, because that is what people know today.)
If a “have” state can keep its revenues within the state, it would have a negative impact on FirstNet’s ability to provide broadband nationwide, according to FirstNet Chairwoman Sue Swenson.
“As we have said from the beginning, $7 billion will not deploy the nationwide network that public safety needs,” Swenson said during yesterday’s board meeting. “Most states will need the revenue generated by a few high-density states.”
Does FirstNet have the right to take excess revenue generated in an “opt-out” state to use elsewhere in the nation? If so, how is it determined what is excess revenue, as opposed revenue a state should keep to support its RAN network, including discretionary funds to handle unforeseen costs? Meanwhile, if FirstNet is going to get all excess revenue, is the “opt-out” alternative something states and territories really would want to consider?
These are just a few of the questions that need to be explored. It is debatable what the answers should be, but there is little doubt that the policy decisions will have a significant impact on FirstNet’s business mode, how bidders approach FirstNet’s final request for proposal (RFP), and the relationship between FirstNet and the states/territories.