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Philly Announces Plan Tomorrow







Philly Announces Plan Tomorrow

Philly Announces Plan Tomorrow 04/06/2005 05:35 PM

Muniwireless.c om has the details on the conference call: Philly mayor and CIO will announce the details of their metropolitan-scale wireless network's business plan. The next phase should be issuing an RFP and considering vendors and financing.




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The Philly plan suggests non-profit, wholesale model: Philadelphia's business plan for their wireless city-wide network is out. Esme Vos interviewed the CIO of Philadelphia on her site, linked above. The report and the RFP are available for download in PDF form.

In its broadest form, Philly proposes to create a separate non-profit organization which will conduct fundraising and obtain bank loans. Its finances will be separate from the city by charter. The non-profit will not operate as an ISP, but will handle infrastructure. This is a model that I have suggested in the past is ideal for municipalities because it promotes competition for the customer among many entities without requiring that each entity build their own infrastructure as a cost of entry into the market.

The business plan includes extensive technical and financial details that now must be factored into the very broad and often inaccurate criticisms of Philadelphia's plan. For instance, previous criticism suggested the plan didn't include WiMax in its thinking. Oops. It does. Extensively, in both pre-WiMax and certified WiMax forms.

Much of the criticism suggested that the city was going to give away Wi-Fi to everyone, thought that Wi-Fi receivers inside laptops wouldn't receive signals indoors, and that the number of nodes was unreasonably small. My reading of the report finds these criticisms specifically answered in depth.


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Not to beat a dead horse, but an Investor's Business Daily article offers some good insights into Philadelphia's plans to build a Wi-Fi network: As much as I hate to sympathize with a huge telco, I have to agree with comments from a Verizon spokesman. He points out that city governments don't pay the same kinds of taxes as companies like Verizon so it's not really fair when companies have to compete with cities that use taxpayer money to build networks. While I like the idea of cities building low-cost networks, it strikes me as odd that they may end up competing against companies--large or small--trying to make a business out of Internet access. 3rd Wave, a provider of hotspot services in Atlanta, suggests that it's not necessary for cities to build networks using taxpayer dollars. It's not news when cities talk about spending money to research the affects of building a Wi-Fi network. "It's news when a city actually brings the Wi-Fi online, which we have done for Atlanta without any public money or help," Rich Tanksley, a 3rd Wave spokesman, wrote in an email exchange. However, 3rd Wave and cities often have slightly different goals. 3rd Wave networks are hotspots that may be useful to customers while they sit in a cafe or other public locations. The cities like Philadelphia are usually trying to offer residents a low cost broadband Internet access option in their homes and anywhere they travel in the city. At the end of the day, however, the problem is that cities wouldn't be interested in building Wi-Fi or other networks if they had good broadband service--landline or wireless--from commercial providers. On a side note, I'd like to encourage my fellow writers to resist the temptation to cite the largest Wi-Fi network in the world. Some writers said the Philadelphia network would be the largest in the world, the Investor's Business Daily piece points to Taipei, Taiwan as the biggest city to offer Wi-Fi, and a recent Seattle Post-Intelligencer article describes a network in Washington that covers 1,500 square miles. The moral of the story is that it's really hard to figure out who has the largest network in the world and that designation probably changes by the day anyway so it will probably suffice to just discuss really large networks....

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It has been interesting to watch the debate progress over the city of Philadelphia's plan to create a city-wide outdoor public WiFi network. The project generated a lot of attention when first announced. At that time, Verizon and Comcast didn't have much to say about it. Then word leaked out that a bill in the Pennsylvania legislature would prohibit Philadelphia and other cities from engaging in such projects. (After a firestorm of protest, Philadelphia got an exception.)

Now that the city has moved along with its plans, the incumbent phone and cable companies are hard ening their opposition. They are talking as though the governing is nationalizing broadband access. Nothing could be further from the truth. The city of Philadelphia is doing what cities do -- look for ways to provide valuable services to its citizens, when the market doesn't meet the entire need. It isn't killing off private competitors. City-run public housing competes with private real estate, and city buses compete with private cabs, but no one seems to have a problem with that.

What gets lost in this debate is that the city and its citizens will benefit in many other ways from a ubiquitous public WiFi network. The city spends millions of dollars on wireless networks for police, fire department, and other city departments. This will decrease costs and greatly increase capabilities for those service. For example, think of how city building inspectors could use the network to access plans and send filings back in real-time. And that's just the start.

Let's not allow reflexive opposition to "bureaucracies" to kill a worthwhile program. Sometimes governments do good things too.


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