January 10th, 2008
Frontline Wireless folds but Martin 'hopeful' public safety network will survive
Whither the next-generation national public safety network? Frontline Wireless, which had been trumpeting a proposal for a public/private partnership for public safety, announced a few days ago that it was “closed for business.” The problem? FW couldn’t raise the $128 million bond required to bid on spectrum expected to cost $1.4 billion.
Even so, FCC Chair Kevin Martin said Wednesday that he is “hopeful” a solution for a national public-safety wireless network would be found.
Frontline was founded by former FCC Chair Reed Hunt and had backing from leading Silicon Valley venture capitalists John Doerr, James Barksdale, and K. Ram Shiram.
Even with a 25 percent discount for Frontline Wireless, the price proved too high. The $1.4 billion entry fee would be just the start because the winner of the auction would spend billions more building out the network. Additionally, because the network would be used by fire and police personnel, the FCC is requiring a rapid build-out.
Democratic commissioner Michael Copps said FW’s failure may herald a new auction model for a public safety network.
“It’s certainly possible the FCC may have to reevaluate things and develop a new model for using this spectrum. The really important thing for America is that we find some way to improve the tools available to our nation’s first responders. We’re six and a half years past 9/11 and we still don’t have a national, interoperable broadband wireless network for public safety users.
One idea for the right model is to rely on current commercial networks. I got an email from a PR guy representing John Kneuer, a former head of the National Telecommunications and Information Administration and currently an executive with Rivada Networks. Kneur provided a statement to me that FW’s failure is “not necessarily bad news for public-safety communications, because robust, reliable solutions that don’t rely on the D Block auction are commercially available today.”
You see, the FCC got it half-right. The concept of having a public-private partnership for public safety communications is exactly right. But the better way is to promote the sharing of the existing commercial infrastructure with public safety. That is the kind of robust, reliable solution that our company is providing to customers in more than a dozen states today. This is vastly better than establishing one carrier with uncertain commercial prospects as “the” national public safety network.
So whether it was lack of interest or lack of financing, the fact remains: The needs of public safety are far too important to leave to one network operator that may or may not succeed in the marketplace.
Other analysts said Wall Street doesn’t want to get close to this auction. Stifel analyst Blair Levin said investors don’t want to play with auction rules that public safety officials final say on technology choices. So what happens now? Maybe just auction the spectrum off to the commercial world and impose public safety rules afterwards. If companies like AT&T don’t like those rules, they can walk away from their li’l billion-dollar buy.
