Digital Inclusion: Wireless Initiatives

Thanks to the hard work of civic-minded activists and policymakers, wireless initiatives in cities like Philadelphia and Minneapolis are creating new lines of revenue to support digital inclusion. The question now is how to spend that revenue. Decision- makers in both cities agree on the desired outcome, but the path of their respective dollars toward that outcome will be very different.

"The deliverable is computers, software, local technical support, relevant Internet education, and a high-speed Internet account for your household. Pretty straightforward," said Greg Goldman, CEO of Wireless Philadelphia, the nonprofit managing the city's network. "And the way we're going to deliver that is through existing organizations in the community that people already know, that they are already related to, that already have related services around a technology education and other programs oriented towards helping people become economically independent."

In Minneapolis, well known local organizations will also be delivering the digital inclusion services, but the emphasis will be on traditional community technology programs like access to computers outside of the home, computer refurbishing, and training on those computers, according to Catherine Settanni, founder and executive director of the Digital Access Project and the Digital Inclusion Task Force coordinator for Wireless Minneapolis.

In contrast to Philadelphia where EarthLink is providing at least 25,000 "EarthLink Assisted" accounts at $9.95 a month and regular accounts at $21.95 a month, the Minneapolis deal does not include free or lower-cost access for low-income consumers.

"It seems to me like a marketing ploy to get new users, turning us all into a sales force to market these low-cost accounts to people, and then those people become full paying customers in the future," said Settanni. "We looked at the idea of free accounts but when we realized how much it would cost to manage a sales force, that's not a game we wanted to be in. We don't want to create another bureaucracy."

Wireless Philadelphia faces the complicated task of doling out those EarthLink Assisted accounts. To qualify for an account, a subscriber must have an income of up to 130 percent of the poverty level. In this model, a reduced-cost Internet account is another form of assistance, like food stamps. But the process of applying for food stamps can be daunting. People will go through that trouble for food, but if getting low-cost Internet is complicated, they might not bother.

Philadelphia has one-stop government service shops around the city called Employment Advancement and Retention Network (EARN) Centers. Some, like People for People and the Caring People Alliance also have computer centers and technology programs. In addition, Philadelphia is home to the innovative Solutions for Progress whose "Benefit Bank" software simplifies the process of applying for state and federal benefits online. Instead of forcing poor people to wait in another line and complete additional forms, Goldman would like to have these organizations offer EarthLink Assisted accounts as part of the benefits package they help people obtain.

In Minneapolis, community technology organizations will receive direct funding rather than added value through partnerships or fees from contracts with a central nonprofit like Wireless Philadelphia.

US Internet Wireless (USIW), the Internet and hosting provider Minneapolis chose to build its network, will donate $500,000 to the community for digital inclusion ? $200,000 at signing of the contract and $300,000 when the network launches. In addition, the company agreed to give back 5 percent of its pre-tax revenue from Minneapolis subscribers and 2 percent of its pre-tax revenue from future subscribers in surrounding municipalities as they join the network.

In Philadelphia, the potential social benefits were part of the plan for a wireless network from the beginning. City officials wanted to be involved in awarding those benefits, so they established Wireless Philadelphia as a managing entity. In contrast, Minneapolis city officials originally intended their network to be used only for public safety. They eventually