Verizon Seen as Unlikely To Pursue Partnership With FirstNet
Verizon probably won’t make a bid to take part in FirstNet, industry officials said in interviews Friday. That probably leaves AT&T standing alone as the top contender to build the public safety network, probably in partnership with other companies, they said. Other industry observers said they wouldn't count out T-Mobile as the carrier anchor for a partnership to build the network. FirstNet released its requests for proposals Jan. 13 and applications are due April 29 (see 1601130046).
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Two years ago, Verizon was widely seen as a likely contender, in part because FirstNet’s Band 14 spectrum fits well with spectrum the carrier has in its portfolio. Industry observers said Verizon has been very quiet on FirstNet. A lawyer who represents carriers, but not Verizon, said the company seems to view the FirstNet spectrum as coming with too many strings attached. Other industry officials said Verizon could opt to compete with FirstNet by offering its services to local governments without the requirements the carrier would face as a partner to the network. A Verizon spokesman said the carrier isn't commenting.
At a Jan. 6 Citi conference (see 1601060059), Marni Walden, Verizon president-product innovation and new businesses, was asked directly about FirstNet. Walden said it was too early to speculate. At the same conference, John Donovan, AT&T senior executive vice president-technology and operations, said AT&T would “aggressively” pursue the contract.
Verizon hasn’t said "no" exactly, but also hasn’t said "yes," said an industry observer who closely follows FirstNet. AT&T already provides “secure, sophisticated” networks for a number of government agencies, so its pursuit of FirstNet makes sense, said a public safety official.
"The $7 billion that Congress funded for FirstNet was based on the U.S. National Broadband Plan analysis of synergy between a FirstNet and robust reliable modern enterprise wireless services,” said Stagg Newman, former FCC chief technologist. “The RFP appears to embrace the principal. Since Congress explicitly said public safety entities were free to choose other commercial offers instead of FirstNet, RFP responders will be challenged to meet the features, functions and price points of the wireless operators." Newman worked on the public safety part of the national broadband plan.
“While there has been interest from the wireless carriers, there are non-carriers who also are interested in being primary bidders; for example, some are interested in arbitraging the spectrum,” said communications lawyer Anna Gomez of Wiley Rein. “Other vendors, such as system aggregators, are seriously looking at the opportunity.”
By setting up a request for proposals that covers all 56 states and territories, FirstNet “is encouraging bidders to partner with other companies, to provide an end-to-end product,” Gomez told us. “Bidders will have to have a satellite component, a rural component, apps, devices, besides the traditional infrastructure. … Lots of parties are talking to one another about potential bids.” Gomez was deputy administrator of NTIA when FirstNet was created.
"If Verizon indeed does not bid, then that makes AT&T the front runner for the FirstNet contract," said Roger Entner, analyst at Recon Analytics. "AT&T certainly has the expertise and wherewithal to provide a top-notch network for first responders nationwide. T-Mobile could certainly come in and try to interject, but they have voiced much more of a wait and see approach, evaluating the RFP."