Friday, June 28, 2013

FirstNet, the State of California: now they have the spectrum but what business model will they go with?

I have to congratulate the State of California to be the first in getting its full use of the 700 D-Block spectrum from FirstNet. Now it will be interesting to see how California starts to nourish that seed it just planted.  Even though Rep. Rosenberger of Ohio was congratulating the State of California, and FirstNet, he does illustrate the point that a real business plan now needs to be created – a business plan that betters what they already have and how it can foster the development of the State. His point should be read as a plan that empowers the State to build a holistic and influential case of fostering the States economic engine as well as its Public Safety requirements. By allowing the state to be creative in its approach and take ownership in its execution can best be fostered through a Public Private Partnership (P3) that doesn’t require taxpayer money – essentially a P3 that uses Private Equity.

For the last two years I have been preaching about a P3 that will do just that – give the state the power and the necessity to build its entire Public Safety Broadband solution without the use of taxpayer money yet still provides a good source of revenue in fulfilling its self-sustainment needs as laid out in the federal legislation. This P3 not only helps the states, but it can also help FirstNet.

FirstNet can still pursue its course of trying to build its own solution so that states can have a choice of service; yet at the same time FirstNet can take a stake of ownership in each of the states P3 efforts that are represented through their recurring revenue stake of that ownership. In short, those states that feel uncomfortable with managing their own deployment can allow FirstNet to build it for them, but they will miss out on the advantages of a P3 model. At the same time for those states that “opt-out” FirstNet can still benefit by taking a small share of the P3 ownership model to which they can reinvest their share of the recurring revenue into the national roadmap of FirstNet. This will allow for both parties, the states and FirstNet, the benefit of the P3 where as a majority of that benefit will remain with the state. You should note, its essential that the state still be required to build their own network under the interoperability and design characteristics that FirstNet layouts as to insure a national holistic solution.

In the end, our course forward is all about the best model. California now has a hold on the spectrum that they can now monetize for their advantage. There are only two real options: “opt-in” with FirstNet, or “Opt-out” with their own P3 model. FirstNet can benefit from both models, but the State can truly benefit from only one – the P3. Then again we are talking about California here and we have seen stranger things come out of the state in the past.

Just some guy and a blog….

No comments:


Words to Live By: “Here’s to the crazy ones, the misfits, the rebels, the troublemakers, the round pegs in the square holes… The ones who see things differently — they’re not fond of rules… You can quote them, disagree with them, glorify or vilify them, but the only thing you can’t do is ignore them because they change things… They push the human race forward, and while some may see them as the crazy ones, we see genius, because the ones who are crazy enough to think that they can change the world, are the ones who do.” (Steve Jobs)