Brian McConnell posted an article on GigaOm on how to fix muni Wi-Fi. He says (in part): “It seems reasonable to me to require mobile operators — as a condition for siting cell towers throughout a community — to provide basic service to users who can’t afford it. What might this wireless “lifeline” service look like?
- 24×7 access to emergency and social services (911, 311, local agencies)
- 15 minutes per day of voice calls
- Basic data service, downgraded when the network is in demand from paying users
- Ability to upgrade to paid plans
- Paid plans that go delinquent or to zero balance are automatically downgraded to “lifeline” phones with limited service
- Ability to re-use second-hand phones
In exchange for supporting the concept of universal service, the mobile operators would receive permission to build more cell towers, tax credits and other incentives to add incremental capacity.”
McConnell argues that muni Wi-fi did not work because it did not solve a pressing problem — that is anyone who can afford a laptop already has cheap broadband at home and they can always find a hotspot when they need to get online. He says the problem is economics.
First, I can’t always find a hotspot when I need it, for example, walking around a city trying to find a restaurant on a Google map on an iPhone. If you use the EDGE network, it’s slow (and if you are from another country, you get roaming charges). Of course, this is not a problem that MOST people have but as more people end up with portable Wi-Fi devices (iPod Touch, iPhone), there will be more demand for Wi-Fi everywhere. The operators could also reduce their customers’ demand for Wi-Fi if they upgrade their EDGE networks to HSPA, which is being done in Europe AND to offer truly flat-rate plans (beware of the data caps though, which if exceeded, could saddle you with a massive bill).
Second, the operators will resist regulations to make them offer universal data service, but if they are sneaky, they can, like with voice universal service, use it to their advantage, that is, get the local governments to subsidize it.
What do you think of Brian’s proposal? Post your comments below.
Making private industry provide any free service or pay for infrastructure is wrong. This is not much different than requiring Cafe’s to provide Internet. What is the difference between simply taxing these companies and then the government installing the infrastructure with those tax dollars. Nobody would stand for it. Why does everyone think that because some companies don’t know how to read a spreadsheet or have dumb business plans that there aren’t some companies out there that actually could work? Why should somebody be forced to subsidize an industry that failed in the private sector?
How about this, we simply allow wireless companies the chance to make a profit with a reasonable business plan? Don’t make them give away free anything. Believe it or not, there really is a way to install a system that can be profitable in a competive environment if stupid business plans that are doomed to failure don’t get in the way again. Hopefully the industry can gain back some of the ground it lost and we don’t have to force an industry to subsidize a hole in our telecommunications infrastructure.
I say we give some real companies a chance to deploy. Earthlink and Metrofi are just now finally getting out of the way. I believe we have a good solution that is cost-effective and scalable. I also think other companies do as well and you will see them come forward. Municipalities move slowly so my guess is that it will take several months until these designs start getting deployed not to mention the re-education of the municipalities. Relax and give some real designs and business plans time to make things right again and restore faith to the concept.