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The Managing Technology Letter
A free monthly newsletter from
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September 2007

Mixed Signals on Municipal Wireless
Plans for blanketing U.S. cities with inexpensive wireless computer networks took a big hit last week. Atlanta-based EarthLink announced a major shakeup, with hundreds of layoffs and big changes in the leadership and direction of its municipal broadband group. That news came the same day that Chicago announced it was putting on ice its plan for building an $18.5 million citywide Wi-Fi service. In analyzing separate proposals from EarthLink and rival AT&T, Chicago found the same thing that many other communities with wireless ambitions also have discovered: Increasing costs and growing private-sector competition are quickly changing the financial equation for Wi-Fi projects -- at least when the public is the primary customer.

Mark Stencel
The Managing Technology Letter is edited by Governing's Mark Stencel. Got an idea? Contact us at techletter@
governing.com.
So is the much-heralded Wi-Fi revolution over?

The first person I turn to when I have questions about public sector wireless plans is Governing associate editor Christopher Swope. Chris has noted the turn to more realistic wireless business models, in which local governments are the primary customers (or "anchor tenants"), using citywide Internet access to enable or improve municipal services. In this model, the mushier and frankly more speculative needs of local citizens and businesses (for low-cost connectivity and spurring education and economic development) come second. (Blog entry: Muni Wi-Fi: Not Dead Yet; May 2007 cover story: Working Without Wires)

Another trusted source is Alan R. Shark, executive director of the Public Technology Institute, a Washington-based organization that focuses entirely on cities and localities. PTI is hosting a timely conference on this very subject in two weeks in Corpus Christi, Texas -- the Gulf Coast community that increasingly is viewed as the city that got wireless right. (Web site: PTI conference details)

Alan also brings knowledge to wireless questions from his past lives with the American Mobile Telecommunications Association, the Rural Broadband Coalition and the Power Line Communications Association. He also founded the International Wireless Telecommunications Association. (Web site: Shark's bio)

Shark answered my questions right after the news about the EarthLink shakeup broke last week.

Q: What do EarthLink's moves and Chicago's decision say about the business model for municipal wireless projects?

A: Many of us felt the so-called "business model" was more political than economic. The broadband environment, in which wireless is a key segment, is fast-moving. Many plans that were made didn't adequately contemplate the increasing need for capacity as application requirements grew, coupled with the price cutting of DSL and other broadband services.

The bottom line is wireless systems are not inexpensive and it is unrealistic to think that someone can simply come in and pay for and build a system for free.

CONTINUED BELOW

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Wireless (Continued)

Q: Signups by citizen users for those services that are available seem to be going slowly. Has the need for municipal Wi-Fi, at least in terms of the public's need, been overstated?

A: The need or demand for wireless broadband or Wi-Fi will grow dramatically as new Wi-Fi phones and other accessories come to market. Rural areas have particular needs and will require special strategies. Cities are struggling with the issue of affordability as well as accessibility. There are other strategies to achieve these goals other than building an owned and operated city system. The most obvious one is to build wireless zones or pods, or bubbles as they have been referred to, as opposed to blanketing an entire city.

Q: Is Wi-Fi the right technology? Should the focus be on WiMAX, or on fiber?

A: Like any healthy diet, nothing beats fiber! But when it comes to wireless, Wi-Fi is still a very vibrant and cost-effective technology as long as one understands its pluses as well as its limitations. Wi-Fi works best under environmentally controlled environments. WiMAX certainly holds promise, but as far as consumer wireless applications are concerned, we will not fully see what it can do until at least 2009. Because a signal will need to travel much greater distances in the WiMAX environment, battery-life technology will need to be dramatically improved for this technology to take hold in the mobile universe.

[EDITOR'S NOTE: No idea what we're talking about? Start with this WiMAX FAQ from WiMAX.com Broadband Solutions of Austin. -- Mark]

But let's not forget the wireless broadband offerings by Sprint, Verizon, and AT&T. The wireless incumbents have some interesting advantages, which include the ability to be truly mobile in any city or location where cell phone coverage exists; bundled services, including text messages, video and music downloads; and they are less interference-prone due to both the technology and the fact that they operate on licensed spectrum.

Q: The focus of late has been on "anchor tenancies" to make municipal wireless initiatives viable for private partners.

A: The "anchor tenant" model is necessary to make muni wireless initiatives possible. But moving to a public or consumer market approach requires far greater infrastructure and controls. You need marketing, billing and collection systems, spectrum management and control systems, etc. But an internal-only or internal-mostly systems would be less expensive at every level for communities that only wanted wireless service for government needs (security cameras, parking meters, water/electric meters, remote log-ins for field staff, building inspectors, etc). It just would come with a cost -- not for "free."

Is this idea just ahead of its time?

A: No, I believe local governments have a responsibility to build internal wireless systems to better serve citizens. And like any other utility, there is nothing wrong with building such a system as they would any other infrastructure. There are many other innovative ways to bring broadband to the disadvantaged -- economic incentives to wireless providers, zoning requirements, etc.

The word that is so often misunderstood is the "why" in Wi-Fi. Too much attention has been paid to the "how." One must begin the discussion with why are we building this, what are the alternatives and most importantly how will it be used and by whom?

The tragedy with the EarthLink collapse and muni-wireless dilemma is that everyone told everyone else what they wanted to hear -- and such talk made its way into contracts that could never have been carried out in a fiscally responsible way!

Muni wireless is alive and well -- it just needed a reality check, and a focus on the "Wi."

OK, "Wi"?
By the way, the changing economics and technological realities of providing municipal broadband services directly to the public -- as explained by Alan Shark above -- does not mean the digital divide has been bridged. A new report by John Horrigan, associate director of the Pew Internet and American Life project, uses national survey data to help explain why broadband access in the United States continues to fall behind other countries -- and why catching up will be difficult. (Web site and PDF: Pew's report)

Horrigan's conculsion:

    "The passage of time has taken care of a portion of the gap in broadband adoption. The passage of time may well take care of the rest, but the likely time horizon will test the patience of many stakeholders in the broadband debate. To be sure, more competition, lower prices, and greater availability of faster infrastructure will be welcomed by American consumers. By themselves, however, they are not likely to be enough to lure non-online users off the digital sidelines. Pew Internet Project research makes it clear that non-users don't yet see the benefits of home high-speed access. To reach the underserved, policymakers might consider more aggressive and targeted outreach efforts that educate hard-to-reach populations about the benefits of online connectivity."

Deals
VisionAIR and GeoComm have implemented a dispatch mapping system for the Virginia Department of Game and Inland Fisheries, integrating the new system with VisionAir's computer-aided dispatch application.

Affiliated Computer Services Inc. has renewed a three-year contract to provide parking-ticket services for the City of Boston. ACS also has been awarded three-year contract renewals by Riverside and Orange, Calif., to continue providing a variety of information-techology services.

CivicPlus will design, develop and host the Web sites for Bethany Beach, Del., Roselle, Ill., Yarmouth, Mass., Centennial, Colo., Crowley, Texas, Osawatomie, Kan., Riverdale, Ga., San Mateo, Calif.,, Tehachapi, Calif. and the Manhattan, Kan., Convention and Visitors Bureau.

Municipal Software's system for permitting and inspections, planning and code enforcement has been adopted by Foristell, Mo., Suffield, Conn., Owyhee County, Idaho, Winter Park, Colo. and Medina, Ohio.

The Virginia Department of Transportation has contracted with Iteris for intelligent-transportation systems and related technical expertise.

Salt Lake City has awarded a contract to Accela to help streamline its plan-review and permitting process for developers and business owners.

Purvis Systems has been selected by the Central Coventry, R.I., Fire District to optimize and maintain the department's fire-management system and provide a voice-over-Internet-protocol phone system.

The Montana Motor Vehicle Division has awarded L-1 Identity Solutions a seven-year contract to provide a secure issuance system for driver's licenses and state identity cards.

Metavante's LINK2GOV has provided an interactive voice response payment application to enable Columbia, S.C., Water Services.

The Jefferson County, Texas Sheriff's Department has awarded a contract to Adesta to install a waterside video-surveillance system along the Sabine and Neches rivers between Beaumont and Port Arthur.

The Orange County, Calif., Sheriff's Department has deployed software from NetMotion Wireless to provide officers in the field with secure access to the department's dispatching system, state and federal criminal databases and other applications.

The California Division of Recycling has awarded Maximus a four-year contract to design and build an integrated information system based on Oracle's E-Business Suite.

Virginia and Microsoft are partnering to use the company's Virtual Earth geospatial-mapping platform to make it easier for campus officials to communicate important public safety information to parents, students, faculty and area residents.

More Deals on Governing.com's technology page

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