FirstNet Seeks Comment on Interpretation of Issues Related to State Opt-Outs

FirstNet’s interpretation of its funding mechanism is an issue of “paramount importance,” but the public notice set to be published in the Federal Register later this week addresses many critical issues, FirstNet Chief Counsel Stuart Kupinsky said during a call with reporters. The public notice also proposes revised interpretations of how the RAN opt-out process works and clarifications of FirstNet’s role in states that choose the RAN opt-out. The notice also asked for advice on related interoperability and operational issues. Comments on the public notice are due 30 days after it appears in the Federal Register. FirstNet previously sought comment on its interpretation of provisions in the Spectrum Act that dealt with the agency’s relationship with the wireless industry (see report in the Sept. 25, 2014, issue).

A state government that receives FCC approval to opt out of FirstNet control of its RAN “could theoretically tap into or entirely supplant” FirstNet’s allocations for cash funding, subscriber fees and fees from spectrum capacity lease agreements (CLAs) within that state, the FirstNet board said in the public notice. If a high-density state that has the potential to generate more funding from CLAs than is needed to run the state’s RAN chooses to opt out of FirstNet control of the RAN, the old interpretation of the Spectrum Act would allow the state to keep that excess CLA funding, said the network. It said that means “funding for all other States could decline because FirstNet will not receive the funding for use outside the State,” which would be problematic since most other states -- especially rural ones -- generate less funding than is needed to run their RANs. “This circumstance could have a detrimental impact on both the funds available to maintain and improve” the FirstNet network, potentially raising the cost of services for public safety agencies, FirstNet said.

FirstNet sought to clarify the opt-out process. A state or territorial governor who chooses to opt for state control of the RAN after FirstNet presents its own plan must make that decision within 90 days after the FirstNet presentation, FirstNet said. The FCC must approve the opt-out plan before the state can apply to NTIA for grant funding to construct the RAN or lease spectrum capacity, FirstNet said. A state’s alternative plan for operating a RAN must demonstrate interoperability with the FirstNet network, FirstNet said. The FirstNet board also proposed to maintain a “flexible” approach to determining which operational functions in a state’s portion of the FirstNet network are controlled by the state or by FirstNet when the state opts for a state-run RAN. Many states had sought flexibility in responses to an earlier FirstNet public notice, the board said. Both the FirstNet-run core network and the state-run RAN are needed to effectively service public safety customers in opt-out states, FirstNet said.

FirstNet asked stakeholders to comment on how FirstNet should maintain its interoperability goals, including how network policies would be applicable in opt-out states and device interoperability across the FirstNet network. Any equipment, including end-user devices, used to access the FirstNet network must adhere to the Spectrum Act’s requirements that such equipment be capable of being used by any public safety entity on the 700 MHz band and must be backward-compatible with commercial networks, FirstNet said. The act’s interoperability requirements also apply to equipment used to access the RAN in opt-out states, FirstNet said.

FirstNet’s decision to seek additional stakeholder feedback occurred days before Swenson is set to testify before the Senate Commerce Committee on FirstNet’s progress (see 1503030058). The Wednesday hearing is also set to include Commerce Deputy Secretary Bruce Andrews, Commerce Inspector General Todd Zinser and Mark Goldstein, GAO director-physical infrastructure issues.