FirstNet Says State Opt-Outs Would Confuse Network Economics
FirstNet is developing a strategy for a scenario where state governors opt out of the national public safety network, FirstNet officials said in an interview for the National Association of State Chief Information Officers (NASCIO) blog. A state deciding to…
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deploy its own radio access network (RAN) “will affect the overall economics of the entire network,” said FirstNet Director of State Plans Richard Reed. “There are significant challenges with the economics of this network for a long time if and when states choose the path of opt-out. Because when a state takes on that responsibility, it changes the cost basis for FirstNet, as well as the revenue basis for the entire network, the deployment, and adoption of users for the entire network. It really confuses the economic picture.” Reed said FirstNet is preparing for different scenarios. “We’ve got some strategies in place, but we do have challenges associated with states from taking on that [RAN] responsibility in terms of the revenue sharing, the economics of an opt-out state, and the ultimate reinvestment into the overall nationwide network. They are very complicated, and so we’re going to have to develop strategies with our partner to accommodate them.” Reed advised any state thinking about opting out to “consider all of the technical, operational, and fiscal risks associated with taking on the responsibility of building a network. … An opt-out state must be functionally, operationally, from a security standpoint and from a technical standpoint, able to connect to our core for deployment of our services.”