FirstNet was created by Congress with provisions in Title VI (Spectrum Act) of the Middle Class Tax Relief and Job Creation Act of 2012 ( P.L. 112-96 ) to ensure the deployment and operation of a nationwide, broadband network for public safety communications. In addition to establishing the structure and goals for FirstNet, Congress provided $7 billion for costs related to planning and deploying the broadband network, and a $135 million grant program to assist states with plans to connect to FirstNet's broadband network. To attract private sector partners, FirstNet can offer access to its assets, including radio frequency spectrum capacity, in return for financial payment or other support. The total cost to build out the network is estimated by most experts to be in excess of $30 billion over 10 years. On November 21, 2016, Rivada Mercury filed a lawsuit against the U.S. government in the U.S. Court of Appeals of Federal Claims over what Rivada says is the illegal and wrongful exclusion of the consortium from the FirstNet procurement process. The lawsuit is expected to delay the contract award until March 1, 2017, at the earliest, although further delays are possible depending on the resolution of the lawsuit. State Public Safety Radio Networks

Since September 11, 2001, state and local agencies—aided by federal grant programs—have invested in improving the reliability and interoperability of mission critical voice communications over Land Mobile Radio (LMR) networks. Each state and other participants have appointed a coordinator to work directly with FirstNet. The state has 90 days to agree to participate or to notify FirstNet, the NTIA, and the FCC of its intent to deploy its own part of the Radio Access Network, and an additional 180 days to provide its plan to the FCC. These costs include the continued operation and possible expansion of state and local LMR 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 competition and innovation in wireless services at the state and local level. Network Construction Fund

The Spectrum Act requires that $7 billion, reduced by the amount needed to establish FirstNet, be available for a Network Construction Fund established in the Treasury to be used by FirstNet for costs associated with building the nationwide network and for grants to states that qualify to build their own networks. The act effectively creates three types of expenditures from the Network Construction Fund but does not specify how funds would be allocated for (1) expenditures by FirstNet on construction, maintenance, and related expenses to build the nationwide network required in the act; (2) by the NTIA to make payments to states that are participating in FirstNet; and (3) by the NTIA for grants to those states that qualify to build their own Radio Access Networks. Among federal agencies designated by the act to provide consultation and support are the Federal Communications Commission (FCC), the National Telecommunications and Information Administration (NTIA), the National Institute of Standards and Technology (NIST), and the Office of Emergency Communications (OEC). As required by the act, the initial, 10-year license to use these frequencies was assigned by the FCC to FirstNet. A total of 34 MHz of spectrum capacity will therefore be available for public safety networks within the 700 MHz band: the 22 MHz designated for broadband, and 12 MHz allocated for narrowband communications, primarily voice. Public Safety Trust Fund

The law provides for transfers from a Public Safety Trust Fund, which is established in the Treasury by the act, to receive revenues from designated auctions of spectrum licenses. These partnerships may be formed between FirstNet and a secondary user for the purpose of constructing, managing, and operating the network. As an independent entity, FirstNet—the First Responder Network Authority—has been given both goals and time frames.
Congress included provisions in the Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96) for planning, building, and managing a new, nationwide, broadband network for public safety communications, by creating the First Responder Network Authority (FirstNet). The act allocated 10 MHz of additional radio frequency spectrum to accommodate the new network and required that the Federal Communications Commission (FCC) assign a license to FirstNet, comprising the newly designated frequencies plus 10 MHz previously assigned to states by the FCC for public safety use. In addition, the act designated federal appropriations of over $7 billion for the network and other public safety needs. These funds are provided through new revenue from the auction of licenses to the commercial sector in other spectrum bands.
The establishment of FirstNet is an important step toward reaching what has been a national goal since September 11, 2001: the provision of interoperable communications for first responders. The immediate goal for FirstNet is to provide a broadband network nationwide to carry data, although it will provide an option for voice communications as well. The cost of constructing and maintaining a nationwide network is estimated by many experts to be in the tens of billions of dollars over the long term. The law anticipates that most of these costs will be covered by partnerships between FirstNet and the private sector in return for commercial access to FirstNet's spectrum.
In order to maintain control over the quality and nature of communications, many states are likely to continue to invest in and maintain their own Land Mobile Radio (LMR) networks that operate on narrowband frequencies under the jurisdiction of state and local public safety agencies. Information available to the public indicates that FirstNet intends to discourage states from building and operating their own networks within FirstNet, in part by limiting the amount of spectrum available for this purpose. FirstNet has taken the position that state autonomy in network design decisions and management will jeopardize FirstNet's ability to provide a network that meets its coverage and service goals.
P.L. 112-96 was signed into law on February 22, 2012, setting in motion the process of setting up FirstNet as an "independent authority within the National Telecommunications and Information Administration," as required by the act; laying out the parameters for partnerships and state, tribal, and federal participation; and meeting requirements either statutory or practical. After extensive consultation with stakeholders and potential partners in preparing proposals for partnering with FirstNet, the initial phases of organization culminated with the deadline for submitting proposals to build and operate the nationwide network, on May 31, 2016.
On November 21, 2016, one of the FirstNet bidders eliminated from consideration, Rivada Mercury, filed a lawsuit in the U.S. Court of Appeals of Federal Claims over what Rivada says is the illegal and wrongful exclusion of the consortium from the FirstNet procurement process. The lawsuit is expected to delay the contract award until March 1, 2017, at the earliest, although further delays are possible depending on the resolution of the lawsuit.
Once the contract is awarded, the contractor will have up to 180 days to deliver detailed deployment plans to each state and territory. Governors will then have 90 days to decide whether to opt in to FirstNet or to opt out and build their own Radio Access Network which must be interoperable with FirstNet. As FirstNet becomes operational, the potential level of public safety agency participation should be better understood, providing opportunities to evaluate the success of FirstNet in meeting the goals Congress set for it in 2012. The 115th Congress will likely continue monitoring the development and deployment of FirstNet through periodic hearings in both the House and Senate.