Tuesday, July 26, 2016

FirstNet to award RFP to the carriers! The State gets nothing the carriers get it all?

So let me get this straight – FirstNet is considering to do what it said it was going to do from the start? Give all the spectrum to AT&T or Verizon anyway? I mean, if I were Verizon, or AT&T, I would submit a bid for the FirstNet spectrum too. After all, where else can you avoid your spectrum caps and get some of the most valuable spectrum on the planet -- for free -- than from the Federal Government on the back of Public Safety and the taxpayers. Has anyone seen the revenue made from these carriers in the last year? AT&T alone has a market cap of $261 Billion with $162 Billion in revenue last year alone, so adding some more revenue to boot, without paying for the spectrum, or for a measly $6 Billion a year, is nothing, especially when they get to expand their capacity more than a hundred fold. Business wise, yah, if I were AT&T I would submit a bid as well. But, ethically is getting the spectrum for pennies on the dollar, on the backs of Public Safety and the taxpayers, the right thing to do? How would someone sleep at night knowing that they took advantage of, and conned, Public Safety and the taxpayers in the largest theft of spectrum on the planet?  

I guess “doing what’s right and not take advantage of others who know no better” is questionable and doesn’t hold any value today? We have politicians getting away with much worse. What would it matter for those same politicians to get their hands on some of the cash from FirstNet that will be coveted by the commercial carriers? Or is this just a bad deal for the States? Imagine if a State were to build its own Public Private entity to capitalize on the use of its own spectrum, with a relationship with those same carriers, but on their own terms? If FirstNet moves forward with a carrier based solution, all they are doing is screwing the States. It’s like a bad contractor taking advantage of an old Lady who can’t defend herself with a half exposed roof. The carriers will be glad to take your spectrum, for their own use, leaving you with a network only half built (or less) – unless you pay them some more money to complete it. Who in the end will have to pay for these bad decisions? Public Safety and the taxpayers, most importantly, the State taxpayers. Mark my words.

Through a State driven Public Private Partnership, a State can capitalize on the broadband services and revenue provided by Private Investment. Some of those investors could be the carriers themselves. Essentially, the State would incentivize the use of the spectrum to capitalize on a private entity to commission its much needed hardened infrastructure to support both wireline (fiber networks) and wireless broadband solutions (5G, etc.). This solution would enable the prioritization of First Responders, State agencies and entities over any commercial use of the network; while at the same time reaping the benefits of much needed revenue to help support Public Safety needs for the foreseeable future. This private entity within the State would hire locally, maintain locally, and increase incentives for private investment to come into the State’s economy – the FirstNet carrier solution will not do that. The FirstNet carrier solution will not even try to tackle building out to the rural areas of the State -- which makes up more than 62% of the geographic landmass of the United States.

If FirstNet awards a carrier based solution, then FirstNet will have come full circle since its first days of pushing a carrier solution onto Public Safety. The carrier FirstNet solution only allows the carrier to increase its capacity 100 fold, across the entire United States, for their own benefit of increased profits all while paying a measly fee to FirstNet. What a waste of time, money, and resources. This is what could happen if we have the government trying to run a broadband solution.

But who am I other than…

Just some guy and a blog….

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