Thursday, January 23, 2014

The Business Plan for FirstNet and the National Public Safety Broadband Network

I’m going to make this as simple as I can -- Here is a solution for FirstNet.

FirstNet can set the standard for the Public Private Partnership, the framework for governance, financial modeling controls and standardization for the States to follow. FirstNet can then establish its own governance model where as it can provide an interoperable service offering, on a subscriber basis, that would be implemented under the national footprint. That subscriber based service offering will ride atop the FirstNet network as the States commence their own build outs.

Using the framework of FirstNet’s procedures, the States can then establish their own P3 model, where as they would be 51% owners of the States deployed network. This ownership model could include proxy ownership of 5% to FirstNet as either a leasing option for the spectrum, or an enhancement to building self-sustainment for the national needs that fall beyond the States control, i.e. inter-state interoperability and governance control. At the same time this model would allow for Private Equity to step in to fund the entire build, and its long-term operations, in return the collect the remaining 49% of the revenue generated from Priority 1, 2 and 3 user services. 

This allows the States to control their build out at the same time provide funding. It will also allow the State, and FirstNet, the ability to avoid taxpayer money while inherently providing economic incentives for jobs creation within the State as well the attraction of private investment to the States offering (after all it is called the Middle Class Tax Relief and “JOBS CREATION” Act).

  • ·       The State gets what it wants and needs for building and sustaining its portion of the network at the same time granting them local control of its needs within the State

  • ·       The Feds get what they want in overall control and assurance to standardization and interoperability, as well as a means to “self-sustain” the overall network

  • ·       Private equity gets its long-term objectives of investment scenarios. 

There are a whole lot of other incentives to this model, but it will defeat the effort of trying to keep this entry short. I am available to discuss if you so desire.

Just some guy and a blog…

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