FirstNet Model May Threaten State, Local IoT Investment, CRS Argues

coverage and service goals,” CRS said in a report dated Thursday, not released publicly. “In seeking economies of scale and cost savings for its own business model, however, FirstNet may be transferring costs and risks to states. In the long term, these costs may hinder state and local investment in services generally categorized as the Internet of Things.” CRS saw other risks in the current FirstNet model, considering how states “may consider the federal presence excessive and cease to cooperate with FirstNet, jeopardizing the purpose of the network.” Telecom policy specialist Linda Moore wrote the 37-page report. CRS points to criticisms voiced by GAO and the Commerce Department Inspector General regarding FirstNet decisionmaking and NTIA oversight. “If these faults appear to be a trend, Congress may consider the value of greater vigilance over the planning process for the deployment of the Nationwide Public Safety Broadband Network that it created,” CRS said. “For example, a number of economic decisions that claim to justify federal control are not supported by public circulation of the economic modeling.” FirstNet planning “apparently” excluded “an analysis of the costs to be assumed by states as a consequence of its business plan,” CRS added, citing “the continued operation and possible expansion of state and local LMR [land mobile radio] voice networks; the cost of integration of LMR and broadband infrastructure; the costs of forfeiting to FirstNet the potential economies of scale in network construction and operation; and the cost of lost opportunities for competitions and innovation in wireless services at the state and local level.” House Communications Subcommittee Chairman Greg Walden, R-Ore., recently told us he wants to hold another FirstNet oversight hearing soon, considering issues raised in a GAO report (see 1504290005).