Here are some notes about FirstNet that you may not have known before IWCE 2016

Opt-out states may not get revenue from federal subscribers in their jurisdiction. A state or territory that chooses the opt-out alternative will be responsible for building and operating the RAN within its borders, but those RAN costs presumably will be offset by revenues generated by public-safety and commercial subscribers within its jurisdiction.

While this is the case conceptually, there may be exceptions. For instance, FirstNet already is talking with federal agencies about subscribing to the network. With offices throughout the country, these federal agencies could subscribe to FirstNet and its contractor to receive nationwide broadband coverage. Meanwhile, an opt-out state would have to provide RAN services to support such federal agencies, even though the opt-out state may not get any revenue from these subscribers.

FirstNet President TJ Kennedy discussed the federal-agency situation during an IWCE session. Could a similar scenario occur with tribal nations or a critical-infrastructure entity—for instance, a utility—with a service territory that spans multiple states? If so, that could have a significant impact on the economics associated with opt-out decision for a state or territory.

If a state or territory does not opt out, FirstNet will build the RAN in its jurisdiction. This may seem like a common-sense statement on the surface, but some state officials have questioned what will happen if it governor does not choose the opt-out route or affirmatively accept FirstNet’s deployment plan for the state.

Even FirstNet officials acknowledged that some governor’s may decide that they do not want to take any affirmative action. For instance, the opt-out alternative may be too risky financially to pursue, but a governor may not want to express support for FirstNet by endorsing its state plan, for political or other reasons.

It’s a similar situation that governors face when presented with a bill passed by the state legislature—they can veto it, sign it into law or take no action. As is the case with legislation, taking no action or approving the FirstNet state plan has the same operational result: FirstNet will build that RAN in the jurisdiction, at no cost to the state.

This no-cost-to-the-state caveat is important, because it means that no legislative action should be required for a state or territory to accept the FirstNet plan. However, in states that require legislative approval to commit state funds, the legislature—perhaps in a special session—may need to approve a governor’s opt-out choice.