NTIA releases notice indicating review criteria of plans from states seeking to ‘opt out’ of FirstNet

NTIA is responsible for administering the RAN Construction Grant program—federal funds that states could use to supplement the revenue generated from the state’s partnership arrangement with its contractor to pay for the buildout of the RAN in the jurisdiction. The details of the NTIA program have not been released yet, but today’s notice includes indications that the funding a state could receive could be decreased, if the opt-out plan increases coordination and interoperability costs for FirstNet.

“In developing this process, NTIA may take into consideration cost increases FirstNet will incur should a state assume the responsibility to conduct its own RAN, and may reduce a final grant award accordingly,” the NTIA notice states. “For example, FirstNet may incur increased costs to mitigate additional operational risks to the NPSBN, and losses of cost efficiencies, if a state assumes responsibility for the construction and operation of the RAN within its boundaries.

“Additionally, should a state conduct its own RAN, FirstNet may bear increased expenses related to interconnection of the state RAN to the NPSBN and mitigation of potential interference by the state RAN to the NPSBN operations in a bordering state. Further, the final grant award amount to a state may be impacted by financial factors, such as how efficiently FirstNet and its partner(s) can build the RAN for that state and the projected income from that state’s partnership agreement(s) and all other revenue sources.”

FirstNet’s request for proposals (RFP) called for offerors to assign a monetary value to each state and territory, but states pursuing the opt-out alternative likely will not know this key information when developing their opt-out deployment plans, if ever.

Any opt-out state will have to demonstrate that it has the financial resources necessary to build the RAN within its borders.

“Among other things, NTIA may require surety bonds to ensure RAN construction completion in the event of default by the state’s RFP partner,” the NTIA notice states.

An opt-out state also must demonstrate the technical and financial ability to operate and maintain the RAN in its jurisdiction

“A state's RAN must be capable of interoperability with the NPSBN as it evolves and improves throughout the duration of the proposed RAN operation by the state, including compliance with new or evolving network policies,” according to the NTIA notice. “Such demonstrations should also include evidence that the state has the funding to fulfill these necessary elements for maintaining ongoing interoperability.”