Here is a suggested process to help states make FirstNet opt-in/opt-out decision

P3: Evaluate RFI/RFP Responses: In this process step, the state will review and evaluate the responses received from the vendors who respond to the state’s RFI/RFP.  A number of key questions and issues to be included in the RFI/RFP were suggested in process step P2.  In step P3, the state will evaluate the responses to determine whether a partner or partners exist who are willing to work with the state to help it meet its objectives with regard to the state’s portion of the NPSBN.

As suggested in the previous step, the state will likely be evaluating the responses relative to the state’s NPSBN objectives regarding:

• Coverage and capacity;
• Network features;
• Network security;
• Availability and hardening;
• Public safety priority;
• Local control;
• Device availability;
• Commercial roaming potential;
• Business models, financial solutions and anticipated revenue stream;
• Financial risk, ownership, mitigation steps, and potential outcomes;
• Use of and synergies with public-owned assets;
• Integration with state and local PSAPs;
• Service plan offerings;
• Anticipated state resource and financial commitments.

The results of the evaluation will need to prepare the state to a sufficient degree to allow the state to answer the question posed in decision point D2.

P4: Develop PPP Alternative Plan: In this process step, the state will take the information received from the RFI/RFP responses and develop a plan to deploy, operate and maintain an alternative RAN.  In order to receive approval from the FCC, the plan must demonstrate:

• That the state will be in compliance with the minimum technical interoperability requirements established by the Technical Advisory Board for First Responder Interoperability; and
• Interoperability with the nationwide public safety broadband network.

Additionally, in order to ensure the plan will meet the requirements to receive funding and allow the state to enter into a spectrum lease agreement should the state choose to Opt-Out, the plan must demonstrate that the state has:

• The technical capabilities to operate, and the funding to support, the state radio access network;
• The ability to maintain ongoing interoperability with the nationwide public-safety broadband network; and
• The ability to complete the project within specified comparable timelines specific to the state.

The plan must also demonstrate that the network has:

• Comparable security, coverage, and quality of service to that of the nationwide public-safety broadband network; and
• Is consistent with any network policies established by FirstNet.

From a financial perspective, the plan must be cost-effective in terms of its use of the spectrum as determined by NTIA. This is interpreted to mean that the state—together with its partner, and subject to the terms of a Covered Lease Agreement (CLA) with FirstNet—must commit to providing FirstNet a revenue stream from the use of the spectrum and core. This conclusion comes from several FirstNet comments, including the one below from their interpretations included in the second public notice:

“FirstNet concludes as part of its cost-effectiveness analysis in determining whether and under what terms to enter into a spectrum capacity lease, it (i) must consider the impact of cost-inefficient alternative RAN plans, including inefficient use of scarce spectrum resources, on the NPSBN, and (ii) may require that amounts generated within a State in excess of those required to reasonably sustain the State RAN, be utilized to support the Act’s requirement to deploy the NPSBN on a nationwide basis.”

This expectation for this revenue stream will vary by state, depending on the population, size and demographics of that state. It is currently unclear what FirstNet’s revenue expectation will be for each state and when that information will be known. FirstNet will be receiving commitments on a state-by-state basis from the prospective partners that respond to the FirstNet RFP. However, it is not known how or when FirstNet will share this information with states, or how this partner commitment will factor into the spectrum lease negotiations with an opt-out state.

P5: Develop Public-Safety-Only Alternative Plan: This process step is similar to P4, except in this case, the state has chosen to develop an alternative plan without a PPP partner. Therefore, the state will not be allowed to offer commercial services and will have to rely on solely the revenue from public-safety users to support the network. This will mean that the state believes it will have enough revenue from public-safety users to operate, maintain and enhance the network, or it is willing to allocate funding from other sources to supplement the revenue in order to maintain the network. A state may choose to take this approach to ensure that all of the network’s capacity is available for public-safety users. Alternatively, the state may be “forced” to take this approach if a viable PPP partner cannot be found, yet the state still wishes to have control over the buildout and operation of the RAN within its borders. Per the legislation, the plan must demonstrate:

• That the state will be in compliance with the minimum technical interoperability requirements established by the Technical Advisory Board for First Responder Interoperability; and
• Interoperability with the nationwide public-safety broadband network.

Additionally, to ensure the plan will meet the requirements to receive funding and allow the state to enter into a spectrum-lease agreement should the state choose to opt out, the plan must demonstrate that the state has:

• The technical capabilities to operate, and the funding to support, the state radio access network;
• The ability to maintain ongoing interoperability with the nationwide public safety broadband network; and
• The ability to complete the project within specified comparable timelines specific to the state.

The plan must also demonstrate that the network has:

• Comparable security, coverage, and quality of service to that of the nationwide public-safety broadband network; and
• Is consistent with any network policies established by FirstNet.

From a financial perspective, the plan must be cost effective, in terms of its use of the spectrum as determined by NTIA. This is interpreted to mean that the state must commit to providing FirstNet a revenue stream from the use of the spectrum and core as described previously under P4.