[CWN-Summit] Philly

[Laura Forlano]

Message: 1
Date: Tue, 28 Sep 2004 10:31:27 -0400
From: Anthony Townsend <anthony at nycwireless.net>
Subject: [nycwireless] Fwd: NYTimes: Big Wi-Fi Project

>
> some details from today's NY Times.... looks like
the Philly project  
> is a lot more modest that the original spin - just
public areas with  
> some potential spillage into homes.
>
> $10 million for this sounds a lot more feasible.
>
>>
>> Big Wi-Fi Project for Philadelphia
>>
>> September 27, 2004
>>  By BOB TEDESCHI
>>
>> FORGET cheese steaks, cream cheese and brotherly
love.
>> Philadelphia wants to be known as the city of
laptops.
>>
>> The city recently announced a two-year effort to
string a
>> free wireless network across its 135 square miles,
>> potentially giving Philadelphia an entirely new
identity as
>> the most wired - or unwired - municipality on the
planet.
>> But skeptics said this initiative, as well as
similar
>> efforts elsewhere across the United States, could
also run
>> aground on its own ambitions.
>>
>> In a recent survey by Jupiter Communications, 8
percent of
>> online consumers said they had tried accessing the
Web
>> through wireless connections. About half said they
had no
>> need or desire to do so. And because many of
Philadelphia's
>> households have no computer - let alone a computer
with an
>> Internet connection - the city's numbers would fall
far
>> below those figures.
>>
>> "Consumer interest will grow, slowly, but right
now, they
>> don't have the equipment or desire for this," said
Julie
>> Ask, a wireless analyst with Jupiter.
>>
>> For those considering municipal wireless projects,
the big
>> questions go beyond how quickly consumers will warm
to the
>> service. Cities and towns are also weighing whether
the
>> technology is as cheap and reliable as many
perceive, and
>> whether these projects will lure customers from
local
>> Internet providers, thereby undermining the
economic
>> benefits such initiatives are meant to provide.
>>
>> Philadelphia is betting its technological
reputation that
>> these concerns will not derail its ambitious plan.
>> According to Dianah Neff, the city's chief
information
>> officer, the plan is to offer free wireless access
in
>> public areas, using Wi-Fi, the wireless fidelity
standard,
>> but free or lower-cost connections could also
extend to
>> households or businesses that qualify for economic
>> assistance. Ms. Neff said she believed the project
could be
>> started by next June and completed a year later at
a cost
>> of $10 million, which the city would raise
privately.
>>
>> "Obviously we won't tax people," she said. "But
I've
>> already had extreme interest from banking
institutions
>> interested in investing. It's a very do-able
funding
>> structure."
>>
>> Building a 135-square-mile hot spot to serve 1.5
million
>> people would not be too hard, Ms. Neff suggested.
The city
>> would probably mount wireless transmitters on light
poles,
>> which it owns, to send signals throughout the area.
But,
>> she said, Philadelphia would not become a municipal
>> Internet company. "This won't be government-run,"
she said.
>> Among other options, the city could pass the
project to a
>> management company, which would build and run the
system in
>> exchange for user fees. "We'll look at all the pros
and
>> cons for each possible model," she said.
>>
>> The plan's proponents argue that wireless Internet
access
>> would benefit Philadelphia in many ways. First, Ms.
Neff
>> said, wireless connections would speed economic
development
>> in areas where businesses cannot afford to pay $800
to
>> $1,500 monthly for high-speed T-1 lines. The
wireless
>> initiative would also improve education, Ms. Neff
said,
>> because children would have better access to
information,
>> and parents could communicate more effectively with
>> teachers.
>>
>> Because more than 70 percent of the city's students
qualify
>> for economic assistance, she said, few families
currently
>> can afford to do that.
>>
>> "The reason we won't just let the market do this is
that
>> there are societal needs that aren't inherently
part of the
>> capitalist system. We need to be sure no
communities in
>> Philadelphia are excluded, whether there's an
R.O.I. or
>> not," Ms. Neff said, using the initials for return
on
>> investment.
>>
>> As to whether enough Internet users are
sufficiently
>> enthusiastic about wireless technology to justify
the
>> investment, Ms. Neff pointed to a pilot test in the
city's
>> Love Park, in which 1,200 users logged on during a
>> two-month stretch beginning in June. "It was a
very, very
>> positive response," she said.
>>
>> Other city leaders are grappling with the question
of
>> whether to follow in Philadelphia's footsteps. "I
can't say
>> why we should be investing taxpayer dollars in
this," said
>> Bill Schrier, chief technology officer for Seattle.
"There
>> might be reasons. I just can't answer the question
at the
>> moment."
>>
>> Mr. Schrier said the city recently asked a group of
private
>> citizens to help decide whether to build a wireless
>> network, perhaps atop Seattle's light poles.
>>
>> City government may be poorly suited to oversee
such things
>> as network security and customer service, he said.
And with
>> the advent of new wireless technologies like the
Wi-Max
>> standard, in which transmitters could send signals
30 miles
>> instead of 300 feet, the city risks adopting a
system
>> destined for obsolescence.
>>
>> Furthermore, Mr. Schrier said, a municipal Internet
>> initiative could hurt city businesses that sell
similar
>> services.
>>
>> Ms. Neff of Philadelphia said she met with
executives of
>> Comcast, which is based in the city, and found them
"very
>> interested in the contract on the management and
support on
>> this."
>>
>> Asked for comment, however, Comcast gave a more
tepid
>> response. A statement from the company said, in
part, "we
>> are looking forward to assisting our hometown to
make an
>> informed decision."
>>
>> Some cities have found success in working with
commercial
>> Internet providers. Hermosa Beach, Calif., for
instance,
>> last month introduced a system to provide free
wireless
>> access, primarily to businesses and residents in
the
>> downtown area. A local Internet company, LA
Unplugged, bid
>> to run the project, which is being financed by
>> advertisements on log-in screens.
>>
>> According to Michael Keegan, the Hermosa Beach city
council
>> member who led the project, the council will vote
early
>> next month on whether to extend the project to all
21,000
>> residents. If it does, he said, the city will have
to find
>> an additional $500 to $700 in monthly advertising
revenues
>> to maintain the system and raise an additional
$65,000 to
>> buy equipment. "Which will be no problem," Mr.
Keegan said.
>> "Even if we don't, this will cost taxpayers maybe
50 cents
>> each. Maybe."
>>
>> The average Internet user will have to spend
between $75
>> and $150 to set up their homes to receive wireless
signals,
>> Mr. Keegan said. Wireless cards for notebook
computer users
>> cost about $40.
>>
>> Mr. Keegan said he was not worried that the service
might
>> hurt existing Internet providers. "Should I care?
I'm not a
>> shareholder," he said. "I'm more concerned about
residents,
>> and they love it."
>>
>> New York City has cast its lot with commercial
Internet
>> providers. It recently awarded contracts to six
wireless
>> contractors, who paid a total of $23 million for
the right
>> to use 3,000 city light poles as bases for cellular
and,
>> possibly, wireless Internet service for paying
customers.
>>
>> Citizens of Austin, Tex., are sidestepping any
potential
>> conflict between city government and Internet
companies
>> through the Austin Wireless City Project, a
nonprofit
>> organization. Richard MacKinnon, the project's
president,
>> said the organization's volunteers had set up 85
free Wi-Fi
>> zones, or hot spots, to serve about 15,000
registered
>> users.
>>
>> Just as with the Hermosa Beach effort, Mr.
MacKinnon said,
>> the project finances each hot spot with
advertising. If a
>> local restaurant establishes a free wireless access
point,
>> for example, when users log in to the network, they
see an
>> advertisement for that restaurant's daily specials.
>>
>> Even if local residents use that wireless signal as
their
>> home Internet connection, "it's really strong
messaging for
>> the neighbors of that restaurant," said Mr.
MacKinnon. "It
>> encourages them to come in."
>>
>>
http://www.nytimes.com/2004/09/27/technology/27ecom.html?

>> ex=1097316083&ei=1&en=e158a21cd5284c61
>>