Commission says telcos best for PSMB

Commercial carriers are the most cost-effective option for deploying a public-safety-grade mobile broadband capability to public safety agencies, according to a draft Productivity Commission report commissioned by government and released today.

Mobile broadband technology represents a significant opportunity to save lives and property, improve first-responder safety and drive productivity gains in the delivery of public safety. It will enable frontline officers to access high-speed video, images, location tracking and much more.

However, its use is unlikely to increase significantly until a ‘public safety grade’ service is available.

The draft report evaluated options for delivering a public safety mobile broadband capability to Australian public safety agencies, including the construction of a dedicated network, a commercial approach and hybrids of the two.

The commission found that a commercial option would be significantly lower cost than a dedicated network or hybrid option.

“A commercial option is lower cost because considerable existing infrastructure could be used or shared, meaning significantly less new investment is required,” said Commissioner Jonathon Coppel.

The commission says that the benefits of each option are not expected to vary markedly, since the options evaluated have been designed to deliver a similar level of PSMB capability.

On that basis, it says, the cost evaluation is likely to provide the best guide to net community benefit for each option.

The commission also considered factors other than cost, such as risks and the need for protocols for sharing information and network capacity among agencies to get the most out of a public safety mobile broadband capability.

“Small-scale trials would provide an opportunity for jurisdictions to gain confidence in a commercial approach, gauge the costs and benefits of the capability more precisely and develop a business case for a wider-scale rollout,” said Commissioner Jonathan Coppel.

The commission is seeking written feedback on the draft report by 28 October 2015.

A final report will be provided to the Australian Government in December 2015.

Key points of the report

• Public safety mobile broadband (PSMB) holds considerable potential to improve how the police, fire, ambulance and other public safety agencies (PSAs) deliver their services. It will allow frontline officers to access high-speed video, images, location tracking and much more.
• PSAs currently rely on their own radio networks for voice communications and some low-speed data. Mobile broadband use has been modest due to concerns that the quality of commercial services is insufficient to support ‘mission critical’ operations.
• The network capacity that PSAs require is uncertain. PSAs are seeking a higher quality of service than what is currently available on commercial networks. However, the standards required (in terms of coverage, reliability, security, priority access and so on) are not specific.
• There are many ways to provide a PSMB capability, including the construction of a dedicated network, a commercial approach or some combination (hybrid) of the two.
• A dedicated network would give PSAs access to (and control over) their own PSMB network using their own parcel of spectrum.
• A commercial approach would mean that PSAs obtain PSMB services from one or more of the commercial mobile carriers through a contract for service.
• The commission has undertaken an illustrative evaluation of the costs of several specific delivery options over a 20-year period. The cost of a dedicated network was estimated to be in the order of $6.1 billion, compared to $2.1 billion for a commercial option. Even the lowest-cost hybrid option is twice as expensive as a commercial option.
• A commercial option is cheaper because it requires significantly less ‘new investment’ than a dedicated or hybrid option as considerable existing infrastructure could be used or shared.
• Risk factors also influence the relative merits of different options.
• A dedicated network would likely take longer to deliver and offer less flexibility to scale up network capacity in the short term, relative to other options.
• Providing priority services under commercial or hybrid options would be more technically complex than under a dedicated option. There are also commercial risks arising from limited competition and supplier ‘lock-in’.
• The benefits of each option are not expected to vary markedly, since the options under evaluation have been designed to deliver a similar level of PSMB capability. On that basis, the cost evaluation is likely to provide the best guide to net community benefit for each option.
• On first principles, a commercial approach represents the most efficient, effective and economical way of delivering a PSMB capability to PSAs.
• Small-scale trials would provide an opportunity for jurisdictions to gain confidence in a commercial approach; gauge the costs, benefits and risks of PSMB; and develop a business case for a wider-scale rollout.
• Competitive procurement is essential. Splitting up tenders, leveraging infrastructure assets and insisting on open technology standards can help governments secure value for money.
• Achieving interoperability will require jurisdictions to agree on common technical standards. PSAs will also need to adapt their operations to make the most of PSMB. This includes protocols for sharing information and network capacity among agencies.
• Spectrum allocation is an Australian Government responsibility. Any spectrum made available for PSMB should be priced at its opportunity cost to support its efficient use.