Tuesday, January 8, 2013

In a short and succinct couple of paragraphs; How do the Carriers and the Utilities play in the Public Safety Broadband Public Private Partnership?

A recent question was asked of me; that is, in a short paragraph, can I explain how the commercial carriers (AT&T, Verizon, etc..) and the Utilities can play in the PSBN Public Private Partnership arrangement? The topics will be presented in a webinar on the 10th of January by FORCE.

Here are those paragraphs:

How the commercial carriers play in the Public Safety Broadband Network is quite simple. The primary reason of the contention today is because of the cost to build out cellular coverage for commercial users to the rural areas. The associated cost doesn’t justify the ROI on the investment. A solution to that, not talking about major metropolitan areas, is for the carriers to wait for the PSBN architecture to be built then, using the priority scheme addressed by FirstNet (that being priority 1-3 users), focus on bidding for access to those priority 3 commercial broadband users that fall within the coverage area of the PSBN. This eliminates the need for the commercial carriers to spend money on building any of the infrastructure, yet at the same time allows them to reap the benefits of pure revenue from new commercial customers further increasing their ARPU profit margins. 

How do the Utilities play in the PSBN? This is a more complex arrangement in that the Utilities will see a great cost advantage in partnering with the State PSBN effort. In short, they can write-off investments made in existing communication infrastructure by leasing or selling those assets to the State P3 PSBN solution; avoid the costly exercise of a capital program to build it themselves which would be in the millions of dollars; they can define the hardening requirements for the State P3 RFP itself; they can fixate on a fixed annual operational payment for service thus eliminating the chaotic behavior of cost overruns for new advancements and upgrades; they can pass the risk of the network upgrades and advancements to the State P3 entity whose business it will be to run the State PSBN solution for them as clients; they can align with the market movers in influencing the OEM manufacturing process for new technology in handsets, radios and the assorted user devices; and ultimately they can access a rich field of broadband spectrum that is in a controlled private, hardened, environment and that meets their requirements that align with their own business goals. 

A third part that both the carriers and the Utilities can prosper from, as well as others, is the ability to also take the stand as a potential private investor in the State’s P3 itself. In essence they could invest money for a proportionate share of the company while in return acquiring a return on their investment of being a client on the network itself. 

of course....

Just some guy and a blog...

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