ABI: Municipal Wi-Fi Needs Paradigm Shift
January 13, 2008 // Published as a news service by IHS
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Municipal Wi-Fi can be a success, if its goals and business models are redefined, according to ABI Research. More than 400 cities in the U.S. have planned municipal Wi-Fi networks, but there is a widespread perception that the concept is fundamentally flawed.
"We need to change our expectations of what a municipal Wi-Fi network is actually good for, from 'free Internet access for all,' to a narrower, higher value role centering on public safety and municipal workers," said Stan Schatt, ABI Research vice president.
Analysts said the free consumer broadband Internet model, which helped sell the idea to the municipalities, is not sustainable in the long term, but these networks are perfect for enhancing municipal workers' productivity and first-responders' emergency communications.
The U.S. federal government's Public Safety Interoperable Communications (PSIC) grant program allocated $1 billion to fund up to 80% of interoperable communications systems for emergency services.
"Whether that entire billion gets funneled into the equipment that's used for municipal Wi-Fi is questionable, but we believe a good part of it will," said Schatt.
To negotiate this shift in priorities, analysts said municipal governments will have to backpedal from the promises they made to voters about free universal Internet access and instead focus on improving public safety and efficiency.
For digital inclusion, pre-paid Wi-Fi Internet access cards can still be distributed by U.S. social services agencies.
Under a revised business model, the municipality would become a paying anchor tenant and the provider would enable connectivity for mobile municipal employees and first-responders. Services would also include public space video surveillance for security or traffic monitoring.
Analysts said where the municipality sees monetary value in those services, the model succeeds. Meanwhile the service provider is free to sell additional services to consumers for a modest fee, stimulating local competition.
Source: ABI Research.