FirstNet Sets First Budget as Live Public Safety Network
The FirstNet board unanimously approved an $81 million operating budget for FY 2019 and decided to explore investing money in network enhancements and innovation. It reserves $81 million and allocates $78 million to network reinvestment, for a total budget of $240 million. The board held its quarterly meeting by conference call Monday. It was the last to be led by Sue Swenson, who must step down as chair after two two-year terms. Secretary of Commerce Wilbur Ross is expected to name at least three new members and a new chair in coming weeks.
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“We’re evolving from a planning organization to an operating organization,” Swenson said. “It’s a pretty big evolution.” She acknowledged "things were a little bit of a mess" when she took the helm in 2014.
This is the first time the authority had to prepare a budget using a “sustainable” model, since the network is now live, said Ed Horowitz, Finance Committee chairman. “This is a living organization that will continue to evolve.” By keeping a close watch on operating costs, it will have more money to invest in its network, said CEO Mike Poth.
The budget prioritizes investment in the network, public safety advocacy, innovation, reinvestment and mission support, said Chief Financial Officer Kim Farington. “Gathering public safety inputs will continue to be a critical part of our work,” she said. “This will ensure that public safety’s voices continue to drive the network and app and the device ecosystems.” Staff will prepare an analysis and recommendations to the board on reinvestment: “We want to make sure that we have a solid process,” said Farington.
The authority has completely cleared Band 14, the 700 MHz spectrum set aside for the use of the new network, said Jeff Bratcher, chief technology officer, in a report to the board. That cost $23 million, with $4 million in grant funds left over for network investment, he said. Bratcher said as spectrum clearing goes, this was a short process.
Forty-one devices have been cleared for use on FirstNet, including Samsung’s new Note9 (see 1808090034), Bratcher said. FirstNet has “well exceeded” goals for making devices available, he said. As of late July, 1,500 public safety agencies subscribed to FirstNet, with about 110,000 connections, he said, up from 30,000 connections in March (see 1803150044).
Vice Chairman Jeff Johnson said he was at the International Association of Fire Chiefs conference last week in Dallas. Some chiefs voiced concern other companies are offering an alternative (see 1808070037), Johnson said. There's frustration that other carriers “are messaging that they have something similar,” he said. The chiefs “know that it’s not the same” and that some other carriers are just trying to retain customers, he said. Johnson referred to FirstNet as the nation's fifth national wireless carrier. “We are in the embryonic stage so there’s more we can do and we’re well aware,” he also noted.
By law, the board has 15 members, with one representative each from the Department of Commerce, Department of Homeland Security and DOJ. The other 12 members, at least four of whom must have ties to public safety, are recommended by the NTIA administrator and picked by the commerce secretary for three-year terms. NTIA Associate Administrator Marsha MacBride said 18 people applied for board slots and NTIA’s recommendations were recently sent to Ross.