Citywide WiFi networks: a must-do?
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While no report has yet related the building of a metro area WiFi network and what chances the mayor has to get reelected, citywide WiFi networks are emerging everywhere. San Fransisco, London, Philadelphia, and now Toronto, Canada and oh, there’s also Lagos, in Nigeria. It is sure nice to provide such a network to city residents, but some projects might end in failure. Here’s why.
Taking the role of private-sector businesses
At soon as they were announced yesterday, Toronto Hydro citywide WiFi plans have been sparking deceptions and criticisms. Some believe, as telecom consultant Mark Goldberg told Canada Post, that the public utility raves to possess a citywide surveillance network to track the household needs in electricity in real time.
But Canadian telcos don’t think this citywide WiFi network will help them. They even say it will dry out their profits. And they could be right. Why Toronto Hydro, which self-claims the Canada’s largest municipal electrical utility, needs to compete with the private sector? To provide a free service to city residents? So why Toronto Hydro is expected to charge a fee for Internet connection? The mystery is still on.
On the other hand, the City council of Philadelphia didn’t face such problem. The reason: they are contracting Earthlink to do the job, install access points on street lights, pay $300,000 a year to rent city lampposts, and on top of that, educate 10,000 low-income households to use the new technologies. Even if the deal might be considered over rated, the City Council could say they do their job and try to fill the “digital gap”.
WiFi is cool but is it useful?
London have elected The Cloud to blanket the Square Mile (the bank buildings area) with radio signals. Great, for City workers and tourists alike, this means continuous WiFi access in the center of London.
However, some analysts pinpointed that The Cloud is covering an already well covered zone. Said Dean Bubley, analyst at Disruptive Analysis, to Silicon.com: “It’s hard to see what the use cases are. For email [business workers] have got BlackBerry, voice they’re on cellular – I can’t imagine anyone wanting a wireless VoIP phone just for the City. Laptop users tend to be indoors and there’s a coverage issue there. The main potential user is the City of London or its contractors.“
So, if we talk about profitability on a short term, The Cloud might not have made the best decision.
Mar 8, 2006 | By Nuno
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