Congressional hearing on FirstNet offers fresh insight into potential opportunities, challenges for commercial partners
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- Congressional hearing on FirstNet offers fresh insight into potential opportunities, challenges for commercial partners
- 2. The mandate for nationwide coverage translates into an emphasis on rural buildout. The Act requires FirstNet to establish a “nationwide” network for first responders through the development of RFPs that include “coverage in rural and nonurban areas.” However, the law does not otherwise specify the level of coverage that constitutes “rural.” In 2014, FirstNet published its first public notice (PN) proposing that the term “rural” should have the same meaning as “rural area” in the Rural Electrification Act (REA) of 1936, as amended, which would include cities, towns, or incorporated areas with fewer than 20,000 inhabitants that are not adjacent and contiguous to urbanized areas with more than 50,000 inhabitants. Several states have criticized this definition as inadequate to ensure ubiquitous state-wide coverage.
- Congressional hearing on FirstNet offers fresh insight into potential opportunities, challenges for commercial partners
Congressional hearing on FirstNet offers fresh insight into potential opportunities, challenges for commercial partners
Challenges
1. Cumbersome federal regulation on hiring and procurement could reduce desirability of or opportunity for commercial partnership. Committee senators from both sides of the aisle expressed frustration over the bureaucratic red tape FirstNet is experiencing for its hiring and procurement-related activities. Based on Swenson’s statements during the hearing, FirstNet has not been able to obtain authority from from the Office of Personnel Management to expedite its hiring. Although not explicitly required under the 2012 law, FirstNet has indicated that it intends to follow the Federal Acquisition Regulation (FAR) process for its comprehensive network-services procurement to meet the statutory requirements for openness and transparency. Furthermore, the law does not exempt FirstNet from a number of other federal laws related to federal acquisition, such as the Contract Dispute Act and the Small Business Act. Understanding how FirstNet must comply with these complex federal requirements governing its acquisition process will be a challenge for any entity wishing to partner with FirstNet.
2. Limited funding and an emphasis on self-sustainability will drive FirstNet’s review of responses to its RFPs. Given the limited public funding available, FirstNet will seek to promote competition among infrastructure providers to obtain the most cost-effective leasing arrangements. Similarly, FirstNet will seek to maximize the value of its spectrum capacity fees from secondary users of the network to greatest extent possible. How FirstNet prices its spectrum could affect the economic opportunity for private-sector partners.
Based on Swenson’s testimony, it is clear that FirstNet’s business plan is largely dependent on the value of its spectrum, its ability to partner with commercial operators and to leverage existing infrastructure, and its ability to deploy to rural areas in a cost-effective manner. FirstNet is understandably anxious to get its RFP process started, as the responses to the draft RFP will further inform FirstNet whether its business assumptions are correct. Not only did Swenson confirm the draft RFP is imminent, but she was very confident that FirstNet would issue its final RFP this year.
For further information, please contact Shawn Chang at [email protected] or 202-719-4456 or Anna Gomez at [email protected] or 202-719-7261. Michael Lewis, senior engineering advisor at Wiley Rein, contributed to this article.