FCC takes initial steps to unlock AWS-3 spectrum auction revenue for public-safety initiatives

After $5.1 billion is deposited in the Spectrum Relocation Fund, the Spectrum Act directs the remainder AWS-3 auction proceeds to be deposited in the Public-Safety Trust Fund (Trust Fund), to be expended according to the following order of priorities:

·         Repayment of the $2 billion loan borrowed by the National Telecommunications and Information Administration (NTIA) for the initial funding of FirstNet;

·         Repayment of the $135 million loan borrowed by NTIA for the creation of the State and Local Implementation Grant Program;

·         $5 billion for FirstNet’s Network Construction Fund;

·         $100 million for research and development under the direction of the National Institute of Standards and Technology (NIST) to advance wireless public safety communications;

·         $20.4 billion to be deposited in the general fund of the U.S. Treasury for deficit reduction;

·         $115 million for the 911, E-911, and NG-911 Implementation Grant Program to be administered by the new 911 Implementation Coordination Office established by NTIA and the National Highway Traffic Safety Administration (NHTSA); and

·         An additional $200 million for NIST-directed public-safety research and development.

The Spectrum Act requires any remaining amount in the Trust Fund to be deposited in the general fund of the U.S. Treasury for the sole purpose of deficit reduction. Given that the AWS-3 auction generated over $41 billion and an additional $1.2 billion has already been deposited in the Trust Fund as a result of the H Block auction, we expect all of the programs and initiatives to be fully funded shortly after AWS-3 proceeds are deposited in the Trust Fund, likely during the second quarter of 2015.

Implication for public-safety communications

As a result of the AWS-3 auction funding, public-safety entities, wireless carriers, and public safety communications equipment vendors and manufacturers should look for the following public safety-related activities:

·         Implementation of 911, E-911 and NG-911 grant program. Due to lack of funding, NHTSA and NTIA have yet to develop a matching grant program to provide financial assistance to eligible entities charged with implementing 911, E-911 and NG-911 services in their communities. After $115 million from the Trust Fund is made available to the agencies, NHTSA and NTIA likely will begin developing the management plan and issue regulations through a public notice and comment rulemaking prescribing the criteria for grant awards. The agencies also are expected to use the resources to prepare and submit a report to Congress that analyzes and determines the costs for specific NG-911 service requirements and specifications, as mandated by the Spectrum Act.

·         Initial outreach and consultation by NIST regarding advanced public-safety communications capabilities. With $300 million made available to NIST through AWS-3 auction proceeds, the agency likely will begin establishing a research plan and working groups with relevant government and private-sector entities to document public-safety wireless communications needs, with the goal of accelerating the development of advanced wireless communications capabilities for public safety. The effort probably will be spearheaded by the Center for Advanced Communication in Boulder, Colo., which was established in 2013 through a Memorandum of Understanding between NIST and NTIA.

·         Limited material impact on FirstNet activities. Because FirstNet is currently funded through the $2 billion NTIA borrowed in FY2014 pursuant to the Spectrum Act, the availability of AWS-3 auction funding will not materially impact FirstNet’s immediate activities. As of February 2015, FirstNet has not determined its outlay requirements and budget for FY2016.

For further information, please contact Shawn Chang at [email protected] or 202-719-4456 or Anna Gomez at [email protected] or 202-719-7261.