Verizon's Public Safety Strategy Seen Raising New Question for FirstNet
Verizon's success in maintaining its public safety base as it rolls out its own first responder-dedicated network in competition with AT&T/FirstNet is hard to predict, analysts and industry lawyers said, but some local government officials see it as a game changer, injecting competition. Verizon historically has had more public safety customers than any U.S. carrier, but stood aside as AT&T and partners negotiated and signed a long-term contract with FirstNet in March (see 1703300050). This week, Verizon unveiled its strategy (see 1708160046).
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Industry observers said few states or territories are likely to opt out of FirstNet, but that doesn’t mean government agencies can’t go elsewhere for service. On Thursday, Nevada became the 15th of 56 states and territories to opt in. It's unclear whether Verizon is pursuing opt-out states. A spokesman told us the carrier isn’t saying that it won’t pursue state contracts. It views the network as “complementary to FirstNet” and opt out isn’t Verizon’s “preferred option,” the spokesman said. “We have received requests from states regarding opting out.”
Verizon is “trying to shore up its current governmental market,” said a lawyer with public safety clients, but not AT&T or Verizon: Verizon’s message could be that “we’re going to provide you with such good service that you’re not going to need FirstNet.” Verizon is saying “we’re still here and we’re going to offer you what FirstNet is offering,” said a former top official at NTIA. Some in public safety feel the offer is “late to the game,” the former official said.
“Verizon is counting on the inertia and satisfaction of its current public safety customers,” said Roger Entner, analyst at Recon Analytics. “The key question is how much funding will be available for current Verizon public safety customers.” The government will reimburse AT&T for the FirstNet buildout when a state opts in “regardless of how successful Verizon is at maintaining their public safety customer base in those markets,” noted BTIG analyst Walter Piecyk. Other analysts declined to comment.
Verizon’s announcement seems like a win for local agencies, said Bay Area Regional Interoperable Communications Systems Authority General Manager Barry Fraser. Most San Francisco Bay Area agencies subscribe to AT&T or Verizon for wireless data, he said. “If California opts-in, these agencies could simply migrate over to the enhanced public safety service offered by their current carrier, or possibly negotiate a better deal, given the likely competitive situation.”
The Verizon alternative could discourage state opt-outs, Fraser said. “Any state opt-out decision requires that the state build an alternative network, which could take years to deploy at a significant cost to the state,” he said. “If Verizon’s enhanced service will indeed be available next year, it would offer an alternative long before any state network could be built. I’m not sure it makes sense to consider building a [stand-alone] network any more, given the fact that two alternatives may soon be available in most places.”
Questions remain about whether the Verizon and AT&T networks will be interoperable, Fraser said. Other industry officials also said interoperability likely will emerge as an issue if agencies make different choices on a network. The bottom line, they said, is it's a safer bet if most first responders are on the same network.
Colorado is “interested to understand the details of Verizon's plan to compete for public safety's business and will be factoring the development into our overall review process,” said the state’s FirstNet single point of contact Brian Shepherd. Colorado submitted feedback to FirstNet on the AT&T plan and is comparing the federal proposal to alternative radio-access-network plans collected in an RFP.
The National League of Cities has no position “on which providers or what form FirstNet should ultimately take, and it’s up to individual states and communities to make their own decisions about to what extent they are able to participate in FirstNet or any other service,” said Principal Associate-Technology and Communications Angelina Panettieri. “Our main priority has been that FirstNet works closely with the first responder community to ensure that their needs are met and all necessary information is communicated.”