FCC Rules on FirstNet Contested as FirstNet, AT&T Release State Plans
The FCC’s proposed order on rules for states to opt out of FirstNet is somewhat of a sleeper item, but attracted more interest than most other items circulated for Thursday’s commissioner meeting. The various filings come at a critical time for FirstNet. On Monday, FirstNet and AT&T announced they're transmitting plans to the states and territories through an online portal. FirstNet, AT&T and now APCO are asking the FCC to toughen its proposed rules to ensure that states that opt out are serious. The pressure is on the FCC to decide whether it will stick with draft rules or tighten them, potentially making opting out more difficult, said former FCC officials.
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FirstNet faces outside threats -- Rivada has made clear it plans to pursue contracts with those who opt out. Rivada gave brochures to the attendees of a recent FirstNet/AT&T meeting in Dallas with officials who are state points of contacts on FirstNet. Attendees said Rivada had a suite at the conference hotel for meetings with state officials. The brochure lists reasons why states should opt out. Rivada Mercury pursued the FirstNet contract but was beaten by AT&T. Rivada Mercury mounted an unsuccessful legal challenge that delayed award of the contract from late 2016 until March.
“This deal does not properly align economic incentives with the technical requirements,” the brochure said. AT&T will “choose the needs” of its 133 million customers over 3.2 million first responders, it said. Rivada stressed the importance of local control. “Without local control, those who know best how to respond to an incident will be denied the ability to set priorities,” the brochure said. “State rights, experience and authority should not be ignored.” Rivada argued that FirstNet made a choice that offers inferior service in rural markets. “Many areas of rural America will never be served by FirstNet’s partner on the ground that it is uneconomical to do so,” the brochure said.
"We don't see ourselves as a threat to FirstNet," said a spokesman for Rivada. "Opt out is part of FirstNet, built into the system from the start. States rightly want to know what their options are before handing over a valuable natural resource to AT&T forever."
APCO chimed in during a meeting last week with FCC staff, saying rules for opting out approved by the FCC must put the onus on the governors. “By notifying FirstNet, the Commission, and NTIA of an intent to opt out, the Governor is choosing to assume significant responsibility, accountability, and risk for the state’s public safety professionals and the citizens they serve,” APCO said in docket 16-269. “The Governor alone should make this notification in accordance with the responsibility and seriousness that opt out entails.”
APCO said the FCC should require a signed contract with an alternate provider before allowing opt out from FirstNet. “The burden is on the state to make its case for interoperability, and APCO would question a state’s commitment, seriousness, and ability to meet the interoperability requirements if it is unable to achieve a signed contract in the time provided by the law,” the filing said. APCO encouraged the FCC to keep deadlines as tight as possible. FirstNet (see 1706160043) and AT&T (see 1706140058) have made similar arguments.
But Joseph Euteneuer, co-CEO of Rivada Networks, and other senior officers were also at the FCC last week to press the agency to allow flexibility in making opt-out decisions. The executives met with all three FCC commissioners and Public Safety Bureau staff. “Congress expressly provided states the right to opt out, preserving an important tenant [sic] of Our Federalism,” Rivada said in a filing on the meeting. “Opt-out provides a market-based check on the offers that AT&T, as FirstNet’s commercial partner, will make to states. Opt-out also ensures that states can be laboratories of innovation.” Rivada offered as an example voice over LTE push-to-talk. “Without the right to opt out, there is no pressure on AT&T to continue to evolve FirstNet,” Rivada said.
FirstNet and AT&T also released FirstNet.com, which will offer more commercial information on the network. FirstNet still isn't saying what it will cost to use the network. FirstNet and AT&T officials on a call with reporters hailed release of the plans.
Chris Sambar, senior vice president-AT&T FirstNet, said the carrier has a “vast infrastructure” across the U.S. and is ready to start buildout within weeks of when a state or territory opts in. There’s a “tremendous value proposition” for governors to “opt in and opt in quickly,” he said. The FCC has an important role and “the best intentions” in ensuring FirstNet is a success, said FirstNet President TJ Kennedy. “We have full faith that they’ll be good partners.” Kennedy predicted public safety agencies will be pleased with the network’s proposed cost structure.
FirstNet also filed a revised matrix at the FCC detailing areas of responsibility for the FCC. “FirstNet appreciates the ... efforts to work with FirstNet to ensure that the interoperability compliance matrix will include the information necessary for the Commission’s review,” said a cover letter filed in docket 16-269. “After the Commission adopts its rules in this proceeding, FirstNet looks forward to having additional conversations with the Bureau to discuss the Commission’s evaluation utilizing the revised interoperability compliance matrix."