T AT&T Inc

By John D. McKinnon 

WASHINGTON -- A federal judge Friday cleared the way for AT&T Inc. to build a long-delayed national broadband network for first responders, rejecting a challenge to the government's process for awarding the deal.

In a sealed order, Judge Elaine Kaplan of the U.S. Court of Federal Claims rejected a rival firm's legal challenge to the process for awarding the huge deal, siding with the government and AT&T.

But wrangling over the long-delayed FirstNet system appears likely to continue for some time.

FirstNet would allow first responders greater ability to communicate during major emergencies by dedicating a slice of the nation's airwaves to the public-safety network. The idea grew out of the terrorist attacks of Sept. 11, 2001, as a way to assist responders at times when other networks are overloaded or inoperable. The project has taken years to reach fruition, however, because of both political and technical challenges.

While details of the bid process and the lawsuit remain secret, AT&T appears to have won the competition in part because of its size and experience. Rival bidder Rivada Mercury LLC complained that it was unfairly excluded.

FirstNet CEO Mike Poth said in a statement Friday that the government agency was "pleased with the court's decision." He added: "FirstNet intends to move expeditiously to finalize the contract for the nationwide public safety broadband network."

AT&T said in a statement Friday that the ruling "allows FirstNet to select its partner and jump-start the process." AT&T said in earlier court filings that it "stands a substantial chance of receiving the award."

Still, further debate over the network is likely. In response to Friday's ruling, challenger Rivada Networks said it would focus on working "directly [with] the states and territories that may want to exercise their right to opt out of FirstNet's federal solution."

The 2012 legislation that created FirstNet allows for states to build their own alternative systems. Some observers believe FirstNet's viability could be endangered if too many states drop out.

In a tweet on Friday, Rivada Networks CEO Declan Ganley said the FirstNet deal would be "quite a wedding present for @ATT Time Warner," a reference to the pending merger of AT&T and Time Warner Inc., which President Donald Trump has opposed.

Rivada was working with a consortium of major high tech firms, including Harris Corp., Nokia Inc. and Fujitsu Network Communications, in the FirstNet competition. It has recruited political heavyweights including former Florida Gov. Jeb Bush and former Maryland Gov. Martin O'Malley to its board.

--Ryan Knutson and Thomas Gryta contributed to this article.

Write to John D. McKinnon at john.mckinnon@wsj.com

(END) Dow Jones Newswires

March 17, 2017 18:51 ET (22:51 GMT)

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