Wireless Tech Chat

Craig Settles, who is, in my opinion, a “guru” on citywide wireless networks, has written a very interesting piece on how these network providers, and the cities that want them, need to work together to come up with a solid business plan that will go a long way to insure that these networks won’t die flaming deaths because the equation “eyeballs equals revenue” did not come to pass.

When the muni WiFi phenomenon took flight just a couple of years ago, it seemed that every town far and wide in this country wanted to get in the act of providing wireless access to their citizens at NO COST. Of course, it sounded like a great deal, and everyone was tripping over themselves to conduct feasibility studies and the like to see if and when the network would be hooked up so that people would be able to get on-line from anywhere within the city limits.

However, let’s look at this two little words that have caused a great deal of consternation and angst lately for citywide wireless network supporters–NO COST. The promise of free wireless internet access is sounding everyday more like a threat.

More and more industry experts are questioning the reality of offering free wireless while still retaining the ability to keep these networks afloat. In addition, who is going to pay to keep them going?

You can’t rely solely on advertising and sponsorships to make them work. Try selling an advertising package to the local pizza shop and more often than not you’ll be sent packing with nothing. That likely is the case with many of these muni WiFi networks–the promise of loads of local advertising to pay for these networks is not becoming a reality.

Let’s face it–the only realistic way for these networks to operate is for users to pay access fees. The fact is that you can’t provide this service for free–if you do, you’re not going to be able to provide much in terms of usability to your customers. Also, if you don’t establish any kind of viable and reliable revenue stream, these “free” networks will bite the dust sooner rather than later.

From this vantage point, and Settles encapsulates it very well in his piece, city governments have to identify areas where they feel a wireless network will help them streamline services, such as meter reading, code enforcement, and public safety. In addition, they will have to realize that offering “free” wireless access to citizens is a no-win situation.

Providers will no longer accept the notion that “eyeballs equals revenue” and that the promise of advertising and sponsorships from local businesses is a dicey proposition, at best.

We all must realize that “free” does not always equal “good,” and that to insure the quality of citywide wireless networks, we’ll have to pay for them through access fees. That way, we’ll have a better chance of seeing and experiencing reliable network access and usability.

[Via KillerApp.com]