FirstNet’s $7 Billion Funding ‘a Personal and Organizational Challenge,’ Ginn Says

"I take the $7 billion as a personal and organizational challenge,” Ginn told the subcommittee, citing the amount of money slated to create FirstNet. The funds are largely anticipated to come from FCC spectrum auctions and widely seen as not enough for the network. In his written testimony (http://1.usa.gov/1c6TCvr), Ginn emphasized the importance of “stretching the $2 to $7 billion Congress has made available to FirstNet.” FirstNet was granted $2 billion upfront, and is set to receive $5 billion from the auctions. Though the law allocates FirstNet $5 billion from the auctions, should they bring in less, FirstNet would get that smaller amount. Ginn wants partnerships to reduce costs and said 70 percent of network costs will come from cell site locations. If FirstNet is able to use state cell sites without fees, it will “dramatically reduce the cost of this network,” he said.

"The point I want to make to you is simply this -- if we get to the bottom line, and we're not there, we're going to reiterate the whole process,” Ginn said of costs, meaning if they aren’t able to build the network with the money on the table, FirstNet will have to go back to the drawing board in terms of how to make that money work.

Subcommittee Chairman Greg Walden, R-Ore., cited concerns about FirstNet leveraging state assets. “Do you think you'll put all the assets in the pot and say goodbye to them?” Walden asked Ohio Chief Information Officer Stu Davis, who had testified about Ohio concerns about the network. Davis replied there are “a variety of different components” to work through and said he wants to “make sure the collaboration piece stays in place.”

Certain hurdles slow FirstNet progress, Ginn said. It takes four to eight months to hire a single federal employee, he said, alluding to expectations “beyond our ability to deliver” when mentioning Ohio: “You don’t get things done that quickly. My comment to Mr. Davis would be work with us. We want to do this as partners.” He cited FirstNet’s work plan for 2014 and its plan to create regional offices pegged to Federal Emergency Management Agency areas. FirstNet has submitted many requests for information and made many hires in recent months, and Ginn’s testimony mentioned various types of outreach FirstNet officials have engaged in. In written testimony, he said FirstNet is “postured for success” and praised the RFI process: “Between June and the closing date, which was August 31, we received 285 responses to these RFIs,” Ginn wrote. “In my opinion this was an amazing result that illustrates how the private sector is interested in the opportunities that FirstNet will provide to public safety in the future.”

Several members of the subcommittee said FirstNet has faced struggles in the last year. FirstNet is a “startup” with its own “growing pains,” said Rep. Doris Matsui, D-Calif. “FirstNet doesn’t seem to know what it wants to be,” Walden said, mentioning long-term costs and other concerns. “This is a heavy lift, and it’s somewhat complicated,” said subcommittee ranking member Anna Eshoo, D-Calif., describing “a push and pull in different places” as FirstNet attempts “rewriting history” of public safety communications. “I have concerns” about FirstNet’s engagement with state stakeholders, said subcommittee Vice Chairman Bob Latta, R-Ohio, in his opening statement, praising some of the progress he has seen.

But Davis said there has been “significant progress” with FirstNet’s communications outreach. “Their message is consistent, and there is a point of contact for us,” Davis said. FirstNet is responsible for getting the network built, a project of “enormous scale” and with critical importance of outreach to customers, Ginn said. If it “doesn’t meet the needs of public safety, it will not be successful.” The network will be jointly negotiated with states and there will be “no surprises” in Ohio when a request for proposals goes out, he said.

"I have confidence in you, I really do,” Eshoo told Ginn.

FirstNet must proceed “efficiently” and with an eye toward cost, said Rep. Marsha Blackburn, R-Tenn. “States need to be given resources” to manage the network “if they found a better way” to manage it she said. FirstNet must “operate efficiently and innovate aggressively,” said House Commerce Committee ranking member Henry Waxman, D-Calif. He called the FirstNet business plan “sound” and said he’s happy with the progress and the knowledge base of the FirstNet staff. “FirstNet is putting its expertise to use” in reaching out to stakeholders, Waxman added. He praised the agreements FirstNet forged with some broadband stimulus grantees.

"It’s intriguing to note that many of the states have benefited from the investments in these programs with interoperable systems,” said Rep. Ben Ray Lujan, D-N.M., of the initial investment in projects throughout the country. FirstNet has negotiated a spectrum lease with a New Mexico public safety broadband project to become a FirstNet pilot.

New Mexico Department of Information Technology Cabinet Secretary Darryl Ackley told the subcommittee he was comfortable negotiating with FirstNet because the state had worked in this space before. “That gave us a position to work with the FirstNet board,” Ackley said. Of the financial concerns, Ackley said those are “good points that are raised here that need to be addressed” and that his comfort level with FirstNet will rise as they are.