Comments on: EarthLink to evaluate performance of muni Wi-Fi business

By: David H. Deans

David H. Deans — Wed, 09 May 2007 14:11:12 +0000

Perhaps it’s not a “paradigm shift” if you forget the technology aspect, and remember that it’s merely “transport” for the global networked economy.

From that point of view, would a government entity support a rail, road or airport project without appropriate demand and usage studies?

My point: many of the MuniWireless projects to date seem to have skipped over the key market assessment step within the validation process, in their apparent haste to attain a head-start on other local markets.

So, if you don’t understand the clusters of segmented users, and the most compelling needs of each cluster, then recognize that you have the makings for a leap-of-faith project. That’s the reality.

By: jay

jay — Sat, 28 Apr 2007 06:08:13 +0000

I don’t agree with someone who say wi fi business is dying across
the country, obiously the city requiere the huge sum of money to
install the wi fi network,but no one understand the way the service provider or the city should deliver this proyect which
can bring a lot of benefit for the comunity specially lower income
resident who hardley can be connected to this wonderfull new era
technology.
The concept of this business is pretty much fresh and innovative
also techologicaly, financialy possible but we do not have the tool to make this service to be succesfull.
If the service provider would have proper business model specially focus on the strategy for advertisment which would deliver more
profit for the service provider, consecuently more coverage and
low cost to acces to wi fi network and more suscriber would enjoy
and feel happy because the cost of service and the area it could be covered.
But I concern about service provider do not find good business model soon which they can bring down the service fee, a lof of
user would be disapointed.

By: John Cooper

John Cooper — Fri, 27 Apr 2007 16:12:40 +0000

First, to address the brief but highly inaccurate note above from RickT – those with closed minds and tightly-held opinions are bound to see any news or setbacks in this industry as confirmation of their opinions. But it’s a far stretch to get from the Earthlink announcement to Rick’s “muni Wi Fi projects are dying quickly across the country.” Give me a break!

What I see is one more sign of an industry that is evolving fairly rapidly. From the surprise offer of Earthlink to fund the Philadelphia network a few short years ago to any number of city projects that sought to negotiate a similar free lunch, we all knew this was a phase in the birth of a new industry, a phase not meant to last for long. How long could one-sided deals last, after all?

A more balanced read of the situation is that these networks are tools that can accomplish a lot, but projects have to be fiscally sound and widely demanded in a community, just like with any other major capital project. They’re not for everyone. But for those towns and cities with real interest, and there are a lot of them out there now, wireless mesh networks offer an alternative to speed up deployment of broadband. We’re in the middle of a paradigm shift, and we’re not sure what it looks like on the other end.

Projects will require more effort but I believe they will continue, because many projects make a lot of sense, and there is definite interest around, which I encounter daily. Earthlink, exciting as it has been and still is, is not the only game in town, and it has its limits. Cities are newly empowered and are open to new possibilities, and there’s no putting this toothpaste back in the tube.

By: Craig Settles

Craig Settles — Fri, 27 Apr 2007 13:41:24 +0000

This move by EarthLink reflects a rational approach to business finance realities that local governments now have to face.

As a major player in this space Earthlink is smart enough to realize this. They have generated lots of good press, they have driven a nationwide movement and thus created a great market demand, and they are an established leader in the industry. But it’s time to look at changing up the approach.

Cities’ reluctance to hold a financial stake in these networks is going to be met with vendor resistance to do business with them. Municipalities that continue to make general public access a main pillar of their business case will be disappointed. The winners will be local governments that build the case on paid government and business use of the network.

I just finished a workshop with a city in southern Calif. and it was invigorating to listen as city department managers and reps from various constituencies came up with idea after idea on alternative – but fiscally sound – avenues for funding their potential network. And yes, several of those options involved the city’s financial involvement in some way. The key for every local government is its willingness to aggressively think outside the box.

By: RickT

RickT — Fri, 27 Apr 2007 11:04:01 +0000

Wow. I am surprised it has taken this long for reality to set in. Muni wi-fi projects are dying quickly across the country, not because it is a bad concept, but because it is technically and financially infeasible. This is the first back step of many in this “industry”.