NTIA would allot $7 billion for public safety network

The White House estimates the cost of the network at over $10 billion, but that includes as a cost the $3 billion the government would cede by choosing not to auction off the D Block of spectrum to commercial providers. Under this proposal, the D Block would instead be devoted directly to police, fire and other safety agencies. 

Seven billion dollars is still well below the FCC’s guess for how much the network would cost, which placed its estimate at up to $15 billion last year.

The public safety proposal is contingent on Congress passing incentive auction legislation to pay for the network. 

Paul Gallant of MF Global said in an analyst note on Monday that passage is still “uncertain.”

“That will be a tough fight because of the difficult budget environment and competing policy and political incentives of the key players,” he wrote.

Still, the proposal has timing working its favor: “We are inclined to think it gets done because of its revenue-raising potential and the looming 10th anniversary of 9/11,” Gallant added.

NTIA sent this statement: “NTIA’s activities support urgent national priorities, including improving public safety communications, spurring economic growth and innovation, and preserving America’s technology leadership. While taking on new duties to assist first responders, we will continue our efforts to free up spectrum for wireless broadband, advance America’s interests in the rapidly growing Internet economy, and vigorously oversee $4 billion in broadband expansion projects.” –Deputy Assistant Secretary for Communications and Information and NTIA Deputy Administrator Anna Gomez