Lawmakers Question FirstNet Chief on Next Steps for States, Stakeholders After RFP

Subcommittee Chairman Greg Walden, R-Ore., asked about the ability of contractors to monetize excess amounts of spectrum and if FirstNet has concluded there’s so much excess capacity that it’ll generate enough revenue. The 20 MHz of the 700 MHz for FirstNet is an “extremely large swath” and is likely to yield “significant cash” for a network built “to a significant size,” Kennedy told Walden. Kennedy also said he expects volunteer firefighters to use the network. He agreed with Walden that the cost for users is an “an unknown right now,” but Kennedy suggested the cost would be comparable to alternatives. Walden cited concerns that committee staffers have heard from entities that could build the network despite lauding its progress (see 1602010062). “As early as late 2017, the network could start being deployed," Kennedy told lawmakers. The subsequent timeline then would depend on states and “could take a number of years" to turn the network on, Kennedy said.

Walden and Rep. John Shimkus, R-Ill., also questioned the 25-year time frame envisioned in the RFP contract. “The next 25 years will bring a lot of innovation and a lot of changes, but we also wanted to ensure public safety has this network for the long haul,” Kennedy said. Walden had wondered why that length when spectrum licenses have to be reauthorized every decade. Shimkus cited the changes since the iPhone’s release in recent years: “That’s the concern of the 25-year RFP locking people in when the tech community can go crazy in a short amount of time.”

Rep. Mike Doyle, D-Pa., questioned whether FirstNet is an endeavor that only the biggest telecom companies can take on. AT&T has expressed interest but Verizon is seen as less interested (see 1601220053).

Kennedy assured Doyle the RFP process involved “an objectives-based procurement,” different from many government procurement arrangements. “We believe this will actually drive greater competition and not less competition,” Kennedy said. He said there are “folks outside of the major telco providers that could bid and win” and mentioned “interest” elsewhere. Doyle also pressed Kennedy on how soon spectrum would be monetizable, prompting Kennedy to assure him FirstNet has “an aggressive plan to work with incumbents” on Band 14. Some incumbents “have already moved off, proactively,” and the goal is clearance “by the middle of 2017,” Kennedy said, allowing any partner to have “unencumbered spectrum” soon following partnership.

House lawmakers focused less on some of the hiring struggles than last year during congressional scrutiny (see 1503110045). But FirstNet is still working with the Commerce Department on “hiring authority and human resources capabilities and having the right leadership in human resources to make that as effective as possible,” Kennedy told reporters after the hearing. “It is always a struggle to hire those resources in the federal process, and it still takes longer than we would hope. But at the same point we think we’ve improved it greatly but there’s still room to make it better.” He said the fixes would be likely more at the agency level rather than new law. “Certain agencies are looking at shared services and improving the speed of that hiring process and the services that are offered for that,” Kennedy told reporters. “Some of it will come down to having our own personnel. But for us, we’ve certainly very much focused on getting the right personnel into the right positions to make sure we can execute.”

“Success will also be measured by whether we integrate the network with NG-911, ensure device competition, and utilize strong security measures,” subcommittee ranking member Anna Eshoo, D-Calif., said in her opening statement. “Last year, I wrote to the FBI urging the agency to ensure they engage in a forward-looking procurement of land mobile radios that does not restrict competition to brand name, proprietary features and standards that can only be met by one vendor. To protect taxpayer dollars and ensure that first responders are equipped with state-of-the-art radios, FirstNet can learn from the FBI’s failed acquisition of LMR which was struck down by the GAO in October.”

“We’re very supportive of next-generation 911 and their key efforts to gain funding for additional deployment of next-gen,” Kennedy told reporters after the hearing when asked about FCC Chairman Tom Wheeler’s efforts pressing Congress for more NG-911 funding. “We believe that’s very important to 911 dispatch centers in making sure all the capabilities of next-gen 911 are leveraged, and they’ve been really coalescing across the country to make sure they come forward with the right ask for what that is. But we are certainly very supportive of those efforts.” During the hearing, Kennedy cited outreach with APCO and the National Emergency Number Association.

“I think you need to unpack for the committee members exactly how it’s going to work for the states,” Eshoo advised Kennedy during the hearing. “The whole issue of rural and urban is really important.” Rep. Yvette Clarke, D-N.Y., asked about the possibility of a “tri-state out-opt” or localities opting out rather than entire states. Kennedy said the act is prescriptive in terms of jurisdictional opt-out. Kennedy emphasized a “multilayered” outreach style to states and much more to come throughout 2016.

“How many states have indicated they want to opt out and create their own network?” Rep. Joe Barton, R-Texas, asked Kennedy. FirstNet will determine that later in the process but is engaging with states on that issue now, Kennedy said. Barton guessed some states -- Alaska and Hawaii due to self-containment of geography -- and others “that have a history of independence” like Texas, with its own electric grid, might want to opt out. “I would hope there’s some planning.”

Commerce Committee Vice Chairwoman Marsha Blackburn, R-Tenn., pressed FCC Public Safety Bureau Deputy Chief David Furth on the idea that the agency is “slow-walking, intentionally” the process of state opt-out to frustrate that possibility. “We certainly have no intention to slow-walk this process,” Furth said. He said the agency would initiate relevant rulemakings in the near term, now much more possible following the RFP’s release. “The commission is capable of conducting rulemakings very quickly,” he assured Blackburn.