By Al Senia
http://www.americasnetwork.com/americasnetwork/article/articleDetail.jsp?id=314704
Municipal Wi-Fi networks are sprouting up around the United States, and
it’s been independent ISPs such as EarthLink and Google that typically
have struck deals with cities to provide wireless broadband access in an
attempt to wrest market share from incumbent service providers.
Now in an example of the “if you can’t beat ‘em, join ‘em” mentality,”
Sprint Nextel has entered into a 60-day trial with the Las Vegas suburb
of Henderson, Nev. to launch a mesh Wi-Fi broadband network. The
wireless service is primarily aimed at helping city officials and
emergency responders work more efficiently in the field, although it
will also be made available to every resident, visitor and business in
the city of 175,000.
Sprint views the trial as a learning experience. “We are doing this to
better understand how people use it and to measure network performance,”
explained one Sprint executive at the TelecomNext trade show, where the
announcement was made this week. Like other service providers, Sprint is
studying how to develop a Wi-Fi business model that can actually make a
profit. (Sprint is covering the network’s cost, but it won’t reveal the
amount of the investment.) Henderson Mayor James Gibson says police and
fire personnel, as well as safety inspectors will heavily utilize the
wireless system.
The trial is being touted as the first municipal Wi-Fi trial of any
magnitude carried out by a local operator in the US market. The Wi-Fi
service is actually being operated by Sprint’s local communications
business, which is expected to separate from the parent company later
this year and operate under the name Embarq.
What’s interesting about this situation is that Sprint is actually
competing with itself since it offers PCS and EVDO service in the same
service footprint. Of course, it’s not at all clear whether the
Henderson trial will extend beyond the end of May. But if it does,
Sprint could conceivable lose existing broadband customers to the new
citywide broadband network. (It could also lose telephone customers to
VoIP running over the network.)
Of course, Sprint and other incumbent providers face the same problem
battling the municipal networks in cities across the US. At least in
Henderson’s case, Sprint can somewhat control the competitive fray, as
well as lock out other Wi-Fi service providers. For these reasons, if
this experiment extends beyond its initial date, it could serve as a
model for incumbent telcos, especially if Sprint ends up with a business
model that actually works and turns a profit.
(Al Senia is the editor of America’s Network.)
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Peter
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