FirstNet board approves process to make future investment decisions for nationwide network
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FirstNet board approves process to make future investment decisions for nationwide network
Under the 2012 law that created FirstNet, the FirstNet board must “reinvest amounts received from the assessment of fees … in the nationwide public safety interoperable broadband network by using such funds only for constructing, maintaining, operating, or improving the network.” Currently, FirstNet’s lone source of fees are the annual payments from AT&T, which are scheduled to total $18 billion—compared to the required minimum of $5.625 billion—during the 25-year contract period.
Last month, AT&T submitted an SEC filing that stated the carrier’s belief that FirstNet’s operations during the 25-year contract period would not exceed $3 billion and that AT&T expects to receive the remaining $15 billion that would be reinvested into the FirstNet system.
FirstNet officials have long touted the fact that its nationwide network—initially built as a 4G LTE system—will be upgraded regularly to ensure that public safety can leverage state-of-the-art technology. Given this, making good decisions about the use of available funds is “strategic to the future of FirstNet,” according to FirstNet Chairwoman Sue Swenson.
“This is really important to public safety, and where we make these investments is really critical,” Swenson said. “As you know, the board’s going to be very involved in this at the front end, so that the staff doesn’t have to waste a lot of time doing business cases without a big return to public safety.”
FirstNet CEO Mike Poth said he believes board involvement in such decisions will be beneficial.
“One of the strengths of this organization is the board and the diverse backgrounds,” Poth said. “Now, we’re really going to exercise some of that expertise as investment review opportunities are being considered.”
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