This "article" is really an editorial. The opinion comes from
"industry executive, Craig Reid, vice president of business
development of the municipal networks unit at BelAir Networks in
Ottawa."
Still, interesting proposition. Is the muni wi-fi model in need of a revamp?
http://biz.yahoo.com/ap/060627/wireless_philadelphia.html?.v=1
---
Wireless Networks Need Better Planning
Tuesday June 27, 3:54 pm ET
By Deborah Yao, AP Business Writer
Official: City Wireless Networks Need More Than Good Intentions, Must
Change Business Models
PHILADELPHIA (AP) -- Many municipal wireless networks will need
subsidies to survive in the long run unless they change their business
models to attract more residential, business and government customers
to shoulder the costs of operating the system, an industry executive
said.
ADVERTISEMENT
"Those networks will need subsidies ... to be sustainable in the long
term, or there will be a need to change business models that are being
implemented right now," said Craig Reid, vice president of business
development of the municipal networks unit at BelAir Networks in Ottawa.
Reid made the remarks in a webcast Friday on municipal Wi-Fi that also
featured Dianah Neff, Philadelphia's chief information officer charged
with deployment of the planned citywide wireless network.
Next month, EarthLink Inc. is expected to start building a wireless
network over Philadelphia's 135 square miles. The system, which
initially will be a test, should be in operation next year.
Neff said the project, aimed at providing affordable broadband access
for poorer families, will also save the city $10 million to $20
million in telecom costs over a decade.
Philadelphia is one of more than 250 communities nationwide that are
preparing or have deployed Wi-Fi service.
Reid said the business plan chosen by cities will determine whether
the networks will make money or at least break even. Such plans
include an ad-support Internet service that would be free to users, a
network that charges subscribers, and a free system paid for and used
by local governments.
Reid said cities in many cases are asking for more than what companies
are willing to take on.
Earlier this month, MobilePro Corp. in Bethesda, Md., declined to
build a wireless network in Sacramento, Calif., after submitting the
winning bid. The company said the city changed its terms and wants an
Internet service free for residents and supported by ads.
MobilePro's President Jerry Sullivan said in a statement that the
ad-supported model is not "financially sustainable." Initially,
MobilePro was to provide free service of limited bandwidth to
customers in certain areas but would charge for higher bandwidths.
Oakland, Calif. resident Craig Settles, author of "Fighting the Good
Fight for Municipal Wireless," said a network needs to sign up major
government and business accounts to support residential subscribers.
Philadelphia's model, which will rely on paid subscriptions, is being
watched closely because it seems one of the most viable around, said
Godfrey Chua, research manager of the wireless and mobile network
infrastructure program at IDC, an IT market research and consulting
firm in Framingham, Mass.
Philadelphia's network will be built, managed and owned by EarthLink,
and the Atlanta-based Internet service provider will act as wholesaler
and retailer. Officials say they hope the cost to consumers will be no
more than $20 per month.
Last year, the city was the first major metropolitan area to announce
a muni Wi-Fi initiative.
"We're going to be watching very carefully," he said. "This will show
us whether it can go big."
.
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