NTIA Seeks Comment on FirstNet Fees
NTIA released an NPRM seeking comment on its review and approval of fees imposed by FirstNet, the proposed broadband network for first responders. The notice is to be published in the Federal Register Tuesday and comments will be due 30…
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days later, NTIA said Monday. “When it enters the market, FirstNet will start with no market share and will have to compete for customers by distinguishing its product in terms of features, price, and reliability from products offered by commercial providers,” NTIA said in the notice. To succeed, “FirstNet will need to employ business strategies with flexibility and agility commonplace in the private sector.” NTIA said it proposed to focus on one area, consistent with the legislation that created FirstNet -- “whether the fees are, in aggregate and combined with other non-fee-based income, sufficient, but not in excess, of the projected funds FirstNet needs to carry out its statutory obligations in a given fiscal year.” NTIA said it plans to focus exclusively on “FirstNet’s projected income and expenses.” Otherwise, NTIA said it doesn't plan to look at whether the fees FirstNet charges are reasonable. “A reasonableness review of FirstNet fees is unnecessary as a matter of policy,” NTIA said. “The Act does not mandate or require any public safety entity to purchase services from FirstNet. FirstNet must compete for subscribers by offering a compelling value proposition to prospective public safety customers.” NTIA proposes to complete its review each year before FirstNet imposes fees. NTIA said it plans to make one of three determinations every year, that the proposed fees -- exceed, meet but do not exceed or do not meet FirstNet’s revenue requirements. If FirstNet’s proposed fees are too high or too low, they can't be assessed, the agency said. NTIA also proposed to allow FirstNet to determine the level of working capital funds it should keep on hand. “By doing so, NTIA will not, in its fee review and approval process, assess whether or what level of funds FirstNet should maintain in reserves, capital accounts, or other funding categories,” NTIA said. “FirstNet’s routine budget, auditing, and accounting processes will presumably determine the need for such capital reserve funds.” NTIA said it expects FirstNet to charge three categories of fees -- user fees, fees for leasing access to FirstNet spectrum and fees for access to FirstNet infrastructure and equipment, including antennas and towers.