Moving Beyond Single-Use Public-Access Models

But by targeting the failings of these models, however, are the media missing a broader, ongoing story on broadband-wireless business-model planning and several leading-edge implementations currently under way?

Industry Reassessment
As far back as 2003, W2i has consistently identified the single-use low-cost public-access business model as speculative. Around the U.S., poor subscriber rates and low revenues from this model are now confirming this, leading the primary investors and service providers behind such models-EarthLink, AT&T, and MetroFi-to reconsider their business strategies. Pending and potential agreements between these operators and their local-government and vendor partners will clearly be affected and could lead either to the abandonment of some projects or to a broad renegotiation of others.

The local-government broadband-wireless industry essentially rests on five key participants-technology equipment vendors, service providers, systems integrators, application providers and local governments. W2i believes that a long overdue realignment of core business strategies-more inclusive, for example, of anchor tenancy and local-government business processes reengineering-could not only reshape the industry in a positive way but could open up opportunities to a whole new set of actors, both on the technology-equipment side and on the service-provider side. Simultaneously, systems integrators and application vendors, who are more technology agnostic, will likely welcome a refined business-model landscape that is based on a balanced view of reality.

While the industry is reassessing itself, W2i is observing an increase in the number of U.S. states providing serious organizational support and funding for deployments in rural and underserved areas. The demand for broadband-and the applications and services it supports-has by no means abated, and the trend at the state level is a positive one for equipment vendors and service providers because the private or local-government investment dollars required in cities may not be relied nearly so much in coordinated regional efforts.

Bad Wireless Technology or Bad Business Model?
On August 1st, the I-35W bridge in Minneapolis collapsed into the Mississippi River, causing nearly a dozen fatalities as well as an immeasurable inconvenience and economic impact on the region. In the face of this crisis, USI Wireless, the service provider deploying Minneapolis's citywide broadband-wireless network, immediately responded by (a) opening the network to emergency first responders, providing an alternative wireless communication channel to the public after cellular service failed, and (b) wirelessly enabling surveillance cameras on the riverbank that linked back to the emergency response centers below Minneapolis City Hall and on the Mississippi River.

While USI Wireless's Wi-Fi mesh network was only 20 percent deployed at the time, its availability and immediate expansion was vital to emergency workers and city, county, state and federal officials who needed both instant communication and the ability to remotely assess the disaster site to prioritize and coordinate action.

Clearly, the technology is not what is in question when broadband-wireless networks are properly architected. (This