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FUNDING

--------------------------------------------------------------------------------

NEWS


FIRSTNET AUTHORITY BOARD APPROVES FY 2023 BUDGET OF $358 MILLION


 * Written by Donny Jackson
 * 18th August 2022

 * 
 * 
 * 
 * 
 * 

FirstNet Authority board members yesterday approved a $358 million budget for
fiscal year 2023, with more than half of the money being allocated to
investments that would be designed to enhance the nationwide public-safety
broadband network (NPSBN) being built by AT&T.



As in past years, the FirstNet Authority budget for fiscal year 2023—beginning
on Oct. 1—has three components: an operational budget, a reserve budget and a
reinvestment budget to fund NPSBN enhancements. For the 2023 fiscal year, the
budget approved on Wednesday includes $84 million for operations, another $84
million in a reserve fund, and $190 million that can be used to fund system
improvements.

“This action paves the way for the FirstNet Authority to continue to deliver and
enhance the network that first responders across the country have come to trust
and rely on for emergencies and natural disasters,” FirstNet Authority Board
Chair Stephen Benjamin said in a prepared statement. “The budget enables the
FirstNet Authority to plan for future capabilities on the network, so it evolves
with technology and delivers the tools public safety needs to keep themselves
and their communities safe.”



Money for FirstNet Authority budget comes from payments made by AT&T to the
FirstNet Authority as part of a 25-year contract that was signed in March 2017.

At that time, AT&T was named as the nationwide FirstNet contractor, with the
opportunity to earn as much as $6.5 billion in an incentive-laden deal for
building the NPSBN within five years of being tasked to start the network
deployment in March 2018. More important than the ability to earn $6.5 billion,
AT&T gained the right to operate commercially on Band 14 spectrum, as long as
public-safety traffic is given priority and preemption.

In return, the FirstNet Authority gets the nationwide public-safety LTE network
that is expected to be upgraded to the latest technology—4G,  5G, 6G, etc.—for
the next 25 years. In addition, the contract requires AT&T to make annual
payments to the FirstNet Authority totaling $18 billion during the 25-year
period of the contract, virtually assuring that FirstNet would be a financially
self-sustainable program during this time.

Of the $18 billion paid by AT&T, about $3 billion is expected to fund the
FirstNet Authority’s operations during the life of the 25-year deal. The other
$15 billion is expected to be reinvested into the FirstNet system, such as this
in-building initiative.

AT&T’s annual payments to the FirstNet Authority increase throughout the life of
the 25-year contract. During the first five years of the deal, AT&T paid $120
million annually to the FirstNet Authority. Fiscal year 2023 marks the first
increase, with AT&T being required to pay $195 million.

To date, reinvestment money has been used to expand the FirstNet fleet of
deployable assets and to deploy a dedicated FirstNet 5G core. In May, the
FirstNet Authority board announced plans to use reinvestment money to fund an
in-building initiative that is designed to ensure that public-safety
facilities—for example, police headquarters and fire stations—provide FirstNet
connectivity when first responders are inside these buildings.

While committing verbally to fund the in-building effort, the FirstNet Authority
has not publicly stated how much money would be allocated to the initiative.

 


Tags: homepage-featured-4 5G Companies Coverage/Interference Critical
Infrastructure Deployables Federal Government/Military Funding In-Building Long
Term Evolution (LTE) News NTIA/FirstNet Policy Public Safety Public-Safety
Broadband/FirstNet State & Local Government System Design System Installation
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