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FirstNet takes nationwide approach to acquisitions; says states can’t retain generated revenue within state borders

By Yejin Jang posted Oct 08,2015 03:27 PM

  

Update: The deadline for comment on FirstNet's special notice (released Oct. 5) is now due on October 21, at 1 p.m. (Eastern) 

Key Takeaway: FirstNet will seek a nationwide (not regional) approach to acquisitions and revenue generated from use of the Network will be utilized to support the nationwide network and cannot be kept within a state’s borders. FirstNet is also seeking comment on cybersecurity portions of the RFP; comments are due October 16 (for now).

On October 1-2, FirstNet held two public board meetings where they approved key RFP elements and adopted final interpretations of key legal terms. Specifically, the FirstNet board approved Resolution 69 which contains legal interpretations of key provisions of the Middle Class Tax Relief and Job Creation Act of 2012 (the legislation that authorized FirstNet) including the definition of “rural.” A full list of legal interpretations is expected to be released in the coming days. 

The Board also approved Resolution 70, “Final Acquisition Approach,” which states that FirstNet will only accept national deployment offers for its final RFP; this removes the possibility of a regional approach which had previously been discussed. While FirstNet is adopting a nationwide acquisition approach, CEO Mike Poth indicated that there would be a “meaningful role” for rural telecom carriers and small businesses. Nationwide offers will be evaluated on the following criteria:

  • Coverage and capacity
  • Products and architecture
  • Pricing
  • Business management
  • Past performance and
  • Use of existing infrastructure

FirstNet has stated that the certainty provided in adoption of these measures will spur collaboration among industry partners in time for the RFP release. 

FirstNet also provided clarification on the use of revenue generated from the Network. The Middle Class Tax Relief and Job Creation Act of 2012 specified that any revenue generated from the Network must be reinvested into the FirstNet system. A question remained as to how this would apply to opt-out states; would opt-out states be allowed to retain generated revenue and reinvest only in its network? FirstNet Acting Chief Counsel Jason Karp answered with a definitive, no. States will not be able to keep generated revenue within their borders and revenue generated from high-density states will be used for the nationwide network. 

Following the board meeting, on Monday, October 5, FirstNet released a special notice that seeks comment on the cybersecurity portions of the RFP. Comments are due by October 16, although there is some rumor of an extension.

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