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A business case for Municipal
      wireless networks
       Evert Bopp, CEO, Wimax EU Ltd.
Looking back
   Internet access used to be fixed to
    location.
   Internet access was a business,
    government & educational tool.
   Internet access was “added value”.
Now
   Internet access is becoming more & more
    mobile (GPRS, WiFi, HSDA, Wimax etc.).
   Internet access has become a social &
    economical driving force.
   Internet access has become an essential
    service.
   Internet usage becomes service & device
    driven.
How to meet this need/demand?

   Networks owned & operated by local
    governments (public service networks)?
   Networks owned by local governments but
    operated by private companies
    (public/private partnerships)?
   Networks owned and operated by private
    companies (free-market/private)?
Public service network

For:
   Access provided by a public body for the public.
   Vendor/provider neutral (net neutrality).
   Non-commercial provider, “bridging the digital divide” etc.
   Easy access to physical municipal assets for equipment placement.
   Internet access “on-demand” becomes a part of the offered utilities.
Public service network

Against:
   Public entity operating in the private/free market (legislation etc.)
   Lack of knowledge to build & operate network.
   Lack of funding.
   Creation of wireless hotzone “islands”.
Public/Private partnership

For:
   Build and operated by an entity with established track-record.
   Part public ownership ensures “net neutrality”, prevents
    monopolisation (a network for the people by the people).
   Provision of services that pure private sector entities would not
    consider profitable.
   Internet access “on-demand” becomes a part of the offered utilities.
Public/Private partnership

Against:
   Public entity operating in the private/free market (legislation etc.).
   Conflict of interest between public & private entities might
    destabilize.
   Requirements of a public entity might slow down network growth.
Private/free market

For:
   Quicker to discover and exploit opportunities.
   Faster to adapt to technological changes.
   More competitive with competing services & technologies.
Private/free market

Against:
   Profit driven.
   Might monopolise the market/network.
Show me the money!

   Muni-wireless will exceed $400 million by 2007.
   200+ networks in the USA.
   In Europe; Norfolk, UK, Paris issued RFP etc.
Show me the money!

So where does the money come from?
   Internet access.
   Location based advertising.
   Online applications & services (VOIP, IPTV, online backup, social &
    business networking).
   3rd party access (emergency services, utility services, CCTV
    monitoring etc.).
Other benefits
   Stimulating effect on local economy (teleworking, companies
    promoting their services & products via a digital medium).
   Educational use ( the internet is the worlds largest library).
   Opportunity for non-profit & charities to promote their activities via
    the network (portal site).
   Attract new investment to the town/city (good economical
    development potential).
Conclusion
   The demand is only growing (wifi enabled
    laptops, pda’s & phones).
   Technology is available (WiFi, Wimax, Mesh).
   The services are only increasing (web 2.0, IPTV,
    VOIP etc.).
   “Social responsibility”: Internet access needs to
    be made available to everyone.
   First in the market will reap the benefits.

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A business case for municipal wireless networks

  • 1. A business case for Municipal wireless networks Evert Bopp, CEO, Wimax EU Ltd.
  • 2. Looking back  Internet access used to be fixed to location.  Internet access was a business, government & educational tool.  Internet access was “added value”.
  • 3. Now  Internet access is becoming more & more mobile (GPRS, WiFi, HSDA, Wimax etc.).  Internet access has become a social & economical driving force.  Internet access has become an essential service.  Internet usage becomes service & device driven.
  • 4. How to meet this need/demand?  Networks owned & operated by local governments (public service networks)?  Networks owned by local governments but operated by private companies (public/private partnerships)?  Networks owned and operated by private companies (free-market/private)?
  • 5. Public service network For:  Access provided by a public body for the public.  Vendor/provider neutral (net neutrality).  Non-commercial provider, “bridging the digital divide” etc.  Easy access to physical municipal assets for equipment placement.  Internet access “on-demand” becomes a part of the offered utilities.
  • 6. Public service network Against:  Public entity operating in the private/free market (legislation etc.)  Lack of knowledge to build & operate network.  Lack of funding.  Creation of wireless hotzone “islands”.
  • 7. Public/Private partnership For:  Build and operated by an entity with established track-record.  Part public ownership ensures “net neutrality”, prevents monopolisation (a network for the people by the people).  Provision of services that pure private sector entities would not consider profitable.  Internet access “on-demand” becomes a part of the offered utilities.
  • 8. Public/Private partnership Against:  Public entity operating in the private/free market (legislation etc.).  Conflict of interest between public & private entities might destabilize.  Requirements of a public entity might slow down network growth.
  • 9. Private/free market For:  Quicker to discover and exploit opportunities.  Faster to adapt to technological changes.  More competitive with competing services & technologies.
  • 10. Private/free market Against:  Profit driven.  Might monopolise the market/network.
  • 11. Show me the money!  Muni-wireless will exceed $400 million by 2007.  200+ networks in the USA.  In Europe; Norfolk, UK, Paris issued RFP etc.
  • 12. Show me the money! So where does the money come from?  Internet access.  Location based advertising.  Online applications & services (VOIP, IPTV, online backup, social & business networking).  3rd party access (emergency services, utility services, CCTV monitoring etc.).
  • 13. Other benefits  Stimulating effect on local economy (teleworking, companies promoting their services & products via a digital medium).  Educational use ( the internet is the worlds largest library).  Opportunity for non-profit & charities to promote their activities via the network (portal site).  Attract new investment to the town/city (good economical development potential).
  • 14. Conclusion  The demand is only growing (wifi enabled laptops, pda’s & phones).  Technology is available (WiFi, Wimax, Mesh).  The services are only increasing (web 2.0, IPTV, VOIP etc.).  “Social responsibility”: Internet access needs to be made available to everyone.  First in the market will reap the benefits.