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acc.com

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

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

  • Written by raidee
  • 1st October 2018

P6: Compare Alternative Plan to FirstNet State Plan: In this step, the state will use the objectives documented in step P1 to compare the state-developed alternative plan to the delivered FirstNet state plan.  The state will be evaluating both the alternative plan and the FirstNet state plan relative to the state’s NPSBN objectives regarding items such as:

  • 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 result of the comparison must prepare the state to determine which plan best accomplishes the objectives the state has established for mission-critical broadband communications. Additionally, in the case where a state has determined its alternative plan is better positioned to achieve its objectives, the state must be able to answer if the added benefit is substantial enough to justify the added risk, financial commitment, and likely delay associated with the opt-out decision (decision point D4).

P7: Submit Alternative Plan for Approval: If the state has decided the alternate plan that it has developed is superior to the proposed FirstNet state plan per decision point D4, the next step is to submit the plan for approval by the FCC. Depending on the information received during the state’s RFI/RFP process and its subsequent planning work, the state may be prepared to do this once its decision has been made, or there may be additional preparation required. 

For example, if the state had previously issued an RFI, but not issued an RFP, the RFP step would still need to occur to confirm that the state has a firm commitment from a partner. Recognizing that the time between making the intention to opt-out decision and presenting a plan to the FCC is very limited (180 days), it is likely that most states arriving to this point will have either completed the RFP process at this time or will be well into the process. Once the state completes the RFP process, they may need to have further discussions or negotiations with its preferred partner before the state’s alternative plan can be completed to the point where it can provide the required information to the FCC and subsequently to NTIA and FirstNet.

P8: Apply for Grant Funding and Negotiate Spectrum Lease: This is the last process step in the opt-out decision and approval process, and it encompasses both the application for grant funding and negotiation of a spectrum lease agreement. A state will have progressed to this point if its alternative plan is approved by the FCC.

The guidelines of the grant process for funding to assist opt-out states with RAN deployment have yet to be defined. However, it appears reasonable to assume that the funding will come from the $6.5B FirstNet has allocated to prospective network partners for deployment and a certain percentage of that total figure will be allocated for each state. One of the requirements of the FirstNet state plan is for FirstNet to identify in the state plan how much funding will be allocated for deployment in that state. What is not known is whether that same figure or some percentage of it will be available to an Opt-Out state that applies for grant funding.

It also appears reasonable to assume that the grant will carry an 80/20% matching requirement similar to the planning grant. This requires the recipient to provide a 20% match of the grant award. Therefore, based on what is known today, the state can only estimate how much funding it may be awarded through the grant process and how much state funding will need to be allocated to the project.

The opt-out state also will be required to apply to the NTIA to lease spectrum capacity from FirstNet. The resulting spectrum-lease agreement will be with FirstNet—the public-safety broadband licensee—although the legislation does specify that the state is to apply to NTIA to lease spectrum capacity. If the state has chosen to incorporate a PPP that includes a partner offering commercial services into its alternate plan, the proposed partner—together with the state—will need to enter into a Covered Leasing Agreement with FirstNet.  It is anticipated that the spectrum-lease agreement will also incorporate requirements for the excess revenue collected by the state regarding how much is to be reinvested into the state’s network and how much will be shared with FirstNet to support their administrative needs or to subsidize network development in other states.

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