FirstNet CEO Says Court Decision Validates FirstNet Made Right Call Picking AT&T
FirstNet CEO Mike Poth told Competitive Carriers Association members Thursday there's significant momentum behind FirstNet. “Now, we don’t have to talk about what’s possible; now we’re into action mode,” he said. Thursday marked a week since an AT&T-led team was named FirstNet’s partner to build the network (see 1703300050). Poth's remarks were streamed from Las Vegas.
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The “next big wave” will be going to the states with state plans, Poth said. He said he didn’t see the U.S. Court of Federal Claims’ decision on the Rivada Mercury appeal until the government released it (see 1704030052). It was “completely sealed” until then, he said. The decision provided “validation of all the process” behind the acquisition, he said. “We weren’t out to select a company or a particular approach; we were out to select a solution that would provide the best value at the lowest risk for public safety.” The judge in the case, Elaine Kaplan, hadn’t even heard of FirstNet before the case was before her court, Poth said. But he said he was proud a “disinterested third party" had validated the selection of the AT&T team.
The contract lasts 25 years with a ceiling value of $100 billion, Poth said. “Over the next 25 years, technology is going to change, the states' needs are going to change,” he said. “Look at how technology has changed in just the past 10 years.” AT&T at a minimum has to invest $40 billion in the network, including $18 billion in cash back to FirstNet, he said. “That’s a significant number.” FirstNet will reinvest most of what it gets in the network.
“This isn’t a one and done, they’re going to build it out once and it stops,” Poth said. “This network, the innovation, is going to grow and evolve.” CCA members will see business opportunities as the network grows, he said. Poth estimated FirstNet will have $16 billion to push the network even deeper into rural areas. He encouraged CCA members to contact AT&T if they aren’t already part of the team that will build the network. “This is not a static deployment" and serving rural areas is critical, he said.
Poth said first responders already are using mobile devices and the kind of apps that FirstNet soon will make available, including to 38,000 New York Police Department patrol officers. The problem is the devices are on a commercial network, he said. “They work great, 98, 99 percent of the time,” he said: When there’s a big parade or sporting event, “those devices are competing with the rest of us for spectrum.”
FirstNet released its latest audit, for FY2016, which ended Sept. 30. FirstNet reported $6.7 billion in assets, from the initial federal funding for the network. Its operating costs were $89.5 million during the year, the Wednesday report said. The authority spent $2 million on “Property, Plant, and Equipment,” about half its expenditures in FY2015. The report was written before the selection of a network partner.
“FirstNet has transitioned away from being an organization focused on planning the execution of our mission, to one that is operating with the purpose of ensuring the implementation and deployment of a secure, reliable nationwide broadband network for the benefit of our first responders and public safety communities,” the report said. “We are confident that through our entrepreneurial approach, commitment to maintaining strong financial stewardship over our resources, and strong support from our stakeholders, FirstNet’s nationwide network will soon be available to the public safety communities of our nation.”