Lessons learned

Communications News, Oct, 2006 by Ken Anderberg

Several years ago, we were discussing Wi-Fi technology here in the office and how, one day, the possibility loomed that the entire country could have a continuous, overlayed Wi-Fi network. Wi-Fi hotspots were being built so rapidly that eventually they might all be interconnected, sharing their traffic in leapfrog fashion across the nation.

Today, that network is beginning to take shape. The footprint, however, is not one of individual hotspots overlapping, but of wireless broadband mesh technology connecting entire cities, regions and, in fact, whole states.

Minneapolis, for example, is planning citywide broadband wireless for 54 square miles for municipal, residential and business applications. Rhode Island will spend $20 million on WiMax and Wi-Fi technologies to blanket the state's 1,045 square miles. And in this issue (page 18) Corpus Christi describes its Wi-Fi network that will cover 147 square miles and serve 277,000 residents at a cost of $7.1 million.

Unlike earlier efforts in this area, however, local governments are generally keeping themselves out of the service provisioning, maintenance and customer service aspects of these projects. Learning from the mistakes of early adopters, local governments today are bringing in private-sector partners for system installation and ongoing operations. Early desires to provide such services for free also are being replaced by sustainable business models.

Corpus Christi's efforts fall somewhere in the middle. The city is funding the startup with tax proceeds and expects those dollars to be repaid through ongoing income from the network. It expects, however, to continue to maintain the physical support of the system to ensure communications for government agencies, and will act as a bandwidth wholesaler to Internet service providers.

Use of tax dollars to fund these wireless networks has been controversial on some fronts, as the benefits fall mostly to those who can afford laptops, home PCs and handhelds, as well as monthly access charges. In addition, local governments that tried to "own" the whole process found themselves under-funding and understaffing their operations.

Rhode Island's installation is motivated mostly by economic development considerations and competition with neighboring Massachusetts. What is unique about the Ocean State's network is that it is being created to support business, education, healthcare and port security communications, but not for consumer use. Rhode Island is appropriately using tax dollars for general public reasons.

According to a year-old Jupiter Research report, only 4% of 83 municipalities were installing wireless networks for the sole purpose of providing residents and businesses with government-sponsored Internet service. Mixed government and commercial needs are behind 63% of the installed networks, with 34% focused on specialized government uses. Local governments have learned, as a result of a number of financial and operational hiccups, that the best road is paved with private-sector involvement.

kanderberg@comnews.com