Saturday, April 09, 2005
Wireless Philadelphia - Reality & Model?
Philadelphia is on a breakthrough path to providing all residents with wireless broadband and voice over wireless services, including WiFi, WiMax, and mesh networks. As reported in MuniWireless.com, Muniwireless: Philadelphia announces business plan and RFP, which show a good blend of government and multiple business partnerings : "Philadelphia has officially released the business plan for "Wireless Philadelphia", the citywide wireless broadband network, and the RFP. They are using the Cooperative Wholesale model (similar to the model used by UTOPIA in Utah). You can also go to www.phila.gov/wireless to view these documents. There will be a web conference today at 15:00 Eastern time - details for joining the conference are here.
I spoke to Dianah Neff (City CIO) about the city's plans, the model they are using and what they expect to gain through it. Under the Cooperative Wholesale model, the city will create a non-profit organization whose task is to build the network by contracting out to private parties. The non-profit will get its funding through foundation grants and bank loans; it plans to earn revenue by selling access to private ISPs at wholesale prices. .... What's interesting as well is that a number of national and local ISPs have told Dianah that they are definitely interested in purchasing access from the non-profit because the ISPs don't have to set up their own infrastructure (getting roof and pole rights, having put to their own equipment on light poles). The projected wholesale prices range from $9 for residential (fixed and nomadic) to $100 for premium business (T1 with local loop; service directly using WiMAX base stations). The estimated typical residential end user price would be $16-$20 and low-income residents will have even cheaper broadband (target is $5 per month). .... The only opposition they have received has come from the incumbent telcos. This is not surprising since Philadelphia is essentially developing a telco-bypass network. .... The Philadelphia plan shows that cities can get creative about designing public-private partnerships that involve as many private enterprises as possible and that lower the cost of communications for businesses and residents. However, if states pass laws that restrict municipal broadband deployments, cities will not even be able to use their creativity to come up with innovative models such as the one devised by Philadelphia."
More details can be found in the pdf version of the plan here : Wireless-Phila-Business-Plan.
Unfortunately, I think Pennsylvannia has passed HB30 which seems to have just that chilling effect on the ability of the rest of the state to get as creative as Philly, which got an exemption for this project. Doesn't seem fair does it? Well, while we could use this capability in NEPA and other rural parts of the state, we don't seem to be ready yet in terms of political organization. When we are, there should be some useful experience from the 'Wireless Philadelphia' project to guide us. Alternatively, existing service providers may get motivated to offer more and better services to rural residents by then. Competition, even the fear of it, can do wonders.
I spoke to Dianah Neff (City CIO) about the city's plans, the model they are using and what they expect to gain through it. Under the Cooperative Wholesale model, the city will create a non-profit organization whose task is to build the network by contracting out to private parties. The non-profit will get its funding through foundation grants and bank loans; it plans to earn revenue by selling access to private ISPs at wholesale prices. .... What's interesting as well is that a number of national and local ISPs have told Dianah that they are definitely interested in purchasing access from the non-profit because the ISPs don't have to set up their own infrastructure (getting roof and pole rights, having put to their own equipment on light poles). The projected wholesale prices range from $9 for residential (fixed and nomadic) to $100 for premium business (T1 with local loop; service directly using WiMAX base stations). The estimated typical residential end user price would be $16-$20 and low-income residents will have even cheaper broadband (target is $5 per month). .... The only opposition they have received has come from the incumbent telcos. This is not surprising since Philadelphia is essentially developing a telco-bypass network. .... The Philadelphia plan shows that cities can get creative about designing public-private partnerships that involve as many private enterprises as possible and that lower the cost of communications for businesses and residents. However, if states pass laws that restrict municipal broadband deployments, cities will not even be able to use their creativity to come up with innovative models such as the one devised by Philadelphia."
More details can be found in the pdf version of the plan here : Wireless-Phila-Business-Plan.
Unfortunately, I think Pennsylvannia has passed HB30 which seems to have just that chilling effect on the ability of the rest of the state to get as creative as Philly, which got an exemption for this project. Doesn't seem fair does it? Well, while we could use this capability in NEPA and other rural parts of the state, we don't seem to be ready yet in terms of political organization. When we are, there should be some useful experience from the 'Wireless Philadelphia' project to guide us. Alternatively, existing service providers may get motivated to offer more and better services to rural residents by then. Competition, even the fear of it, can do wonders.
