Municipal Wi-Fi spending estimates down
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A leading industry analyst on municipal wireless projects is revising its 2007 spending estimates as cities find their projects costing more and drawing less interest from residential customers than expected.
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What has gone wrong, might not go wrong Comment A new report "warns that cities considering municipal WiFi shouldnât fool themselves into believing that the experience will be as routine as running water, gas and electricity systems." The report should come with a Thatcher Warning; it's not ideologically neutral.â¦
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Some smaller ISPs want the FCC to designate an unused spectrum for nationwide wireless broadband.
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Pah - we sneer at your global economies of scale! More dismal news for the US consumer. After the simultaneous failure of Municipal Wi-Fi projects in three major US cities - something we predicted four years ago - faster, cheaper mobile data looks further away than ever.â¦
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An ambitious plan to blanket the city with wireless broadband Internet will be shelved because it is too costly and too few residents would use it, Chicago officials said Tuesday.
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By JUDY O'ROURKE  SANTA CLARITA -- The days of patronizing certain food or coffee joints to tap a wireless Internet feed may soon be past, with citywide access on the horizon.
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Ambitious municipal wireless project may include eight technologies and take longer than expected.
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While the news about municipal Wi-Fi has been grim lately, columnist Craig Mathias describes why he thinks it will inevitably succeed.
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It's been a tough year for municipal Wi-Fi projects and emerging wireless technologies, but with the bruises comes new muscle.
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(InfoWorld) - EarthLink's announcement that it will lay off 900 people is a blow to broadband competition, but some industry followers say it doesn't signal the end of municipal Wi-Fi. While EarthLink's statement about the job cuts doesn't include a single mention of Wi-Fi, the company's municipal Wi-Fi business is likely to be hit hard. A filing with the U.S. Securities and Exchange Commission made on Tuesday says the position of president of municipal networks is being eliminated and Don Berryman, who held the position, is one of the employees being let go. At the end of June, EarthLink had just over 2,000 employees. In addition, EarthLink has been reining in its municipal efforts since earlier this year. Most recently, in July, the company saidÂ it would not take on any new municipal Wi-Fi projectsÂ until it's confident of a reasonable return. EarthLink's woes could eliminate the potential for new competition in the broadband industry. "What you won't see any more is a new entrant in the telecom business coming in like EarthLink did and trying to build green-field networks and compete against the incumbent to build a third pipe to the consumer," said Ron Sege, CEO of Tropos Networks, the vendor that supplies EarthLink with Wi-Fi network equipment. Instead, he suspects that existing operators will build Wi-Fi networks as an extension of their DSLÂ offerings and that cities may build the networks in order to use them for public safety applications or meter reading. EarthLink's troubles point to a couple of problems with many of the municipal Wi-Fi business plans, said Phil Solis, an analyst at ABI Research. "The whole premise of doing municipal Wi-Fi was that it would be extremely low cost," he said. "But the low-cost assumptions were built on having 30 or 40 Wi-Fi [access points] per square mile." In practice, operators found they might need as many as 100, which changed the economics, he said. In addition, some operators assumed that the municipalities would use the networks, but in some cases that didn't happen. Some newer contracts are requiring municipalities to commit to a certain level of business, guaranteeing the operators some revenue, he said. Solis called EarthLink's restructuring a "reality check." Operators and cities are better off considering Wi-Fi, WiMax, and cellular, depending on the application, he said. Wi-Fi can still work in dense areas and will work even better when 802.11n, a faster Wi-Fi standard, becomes widely used, he said. Given more time, EarthLink might have succeeded, Sege said. Gary Betty, EarthLink's former president and CEO, started the municipal Wi-Fi business at the company. But Betty suddenly died in early January, leaving no one to "carry the flag" for municipal Wi-Fi, Sege said. He suspects that Betty may have had a long-term growth plan that would have seen the networks start to pay off in around five years. New President and CEO Rolla Huff hopes for a quicker payoff, he said. EarthLink, which has scheduled a conference call for Wednesday to further discuss the restructuring, has not said what it plans to do with the Wi-Fi networks it has already built. It operates networks in Anaheim, California; Corpus Christi, Texas; Milpitas, California; New Orleans, and Philadelphia. It could continue to operate them or consider selling them to Clearwire or Sprint Nextel, companies that are just beginning to build WiMax networks. EarthLink's customers and access to city infrastructure for hanging network equipment could be valuable to them, Sege said. News of the restructuring could cloud the municipal Wi-Fi initiative in San Francisco, where city officials early this year finished negotiating a contract with EarthLink. The network still needs approval by the city's Board of Supervisors. A committee is scheduled to vote next week whether to send the contract on to the full board for approval. Opponents have used EarthLink's financial woes to raise question the viability of the plan. In its statement, EarthLink said it expects subscriber additions to slow down in 2008. At the end of June, EarthLink had more than three million dial-up and 1.1 million broadband subscribers. In addition to offering wired and wireless Internet service, EarthLink is also part owner of Helio, a struggling mobile virtual network operator. (Stephen Lawson in San Francisco contributed to this story).
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Municipal Wi-Fi, full of promise and hype over the past two years, has hit the wall of reality in the U.S. because of economics, politics and even the technology.
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A look at the uneven course of WiMax, municipal Wi-Fi, and other wireless stories of the year.
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Business models followed technology too closely A year ago, hardly a week went by without news of a major municipal wireless project in the US, supporting free or subsidized access and a host of shiny business models. Now hardly a week goes by without news of the death of one of these plans.â¦
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Columnist Craig Mathias says eventually all cities will deploy municipal Wi-Fi, but the system remains in its early stages because many business and political hurdles need to be overcome.
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By CHRIS WETTERICH STAFF WRITER  Did the city of Springfield move too fast to scuttle a proposed downtown wireless Internet network?   One member of the group that planned that network said last week that may be the case.
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Two-thirds of survey respondents say public safety is the main reason for spending tax dollars on wireless broadband networks.
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Big city's WLAN okay. Little towns not so lucky