A business case for A business case for Municipal wireless Municipal wireless

networksnetworksEvert Bopp, CEO, Wimax EU Ltd.Evert Bopp, CEO, Wimax EU Ltd.

Looking backLooking back Internet access used to be fixed to Internet access used to be fixed to

location.location. Internet access was a business, Internet access was a business,

government & educational tool.government & educational tool. Internet access was “added value”.Internet access was “added value”.

NowNow Internet access is becoming more & Internet access is becoming more &

more mobile (GPRS, WiFi, HSDA, Wimax more mobile (GPRS, WiFi, HSDA, Wimax etc.).etc.).

Internet access has become a social & Internet access has become a social & economical driving force.economical driving force.

Internet access has become an Internet access has become an essential service.essential service.

Internet usage becomes service & Internet usage becomes service & device driven.device driven.

How to meet this How to meet this need/demand?need/demand?

Networks owned & operated by local Networks owned & operated by local governments (public service networks)?governments (public service networks)?

Networks owned by local governments but Networks owned by local governments but operated by private companies operated by private companies (public/private partnerships)?(public/private partnerships)?

Networks owned and operated by private Networks owned and operated by private companies (free-market/private)?companies (free-market/private)?

Public service networkPublic service networkFor:For: Access provided by a public body for the public.Access provided by a public body for the public. Vendor/provider neutral (net neutrality).Vendor/provider neutral (net neutrality). Non-commercial provider, “bridging the digital divide” etc.Non-commercial provider, “bridging the digital divide” etc. Easy access to physical municipal assets for equipment Easy access to physical municipal assets for equipment

placement.placement. Internet access “on-demand” becomes a part of the offered Internet access “on-demand” becomes a part of the offered

utilities.utilities.

Public service networkPublic service networkAgainst:Against: Public entity operating in the private/free market Public entity operating in the private/free market

(legislation etc.)(legislation etc.) Lack of knowledge to build & operate network.Lack of knowledge to build & operate network. Lack of funding.Lack of funding. Creation of wireless hotzone “islands”.Creation of wireless hotzone “islands”.

Public/Private partnershipPublic/Private partnershipFor:For: Build and operated by an entity with established track-Build and operated by an entity with established track-

record.record. Part public ownership ensures “net neutrality”, prevents Part public ownership ensures “net neutrality”, prevents

monopolisation (a network for the people by the people).monopolisation (a network for the people by the people). Provision of services that pure private sector entities would Provision of services that pure private sector entities would

not consider profitable.not consider profitable. Internet access “on-demand” becomes a part of the offered Internet access “on-demand” becomes a part of the offered

utilities.utilities.

Public/Private partnershipPublic/Private partnershipAgainst:Against: Public entity operating in the private/free market Public entity operating in the private/free market

(legislation etc.).(legislation etc.). Conflict of interest between public & private entities might Conflict of interest between public & private entities might

destabilize.destabilize. Requirements of a public entity might slow down network Requirements of a public entity might slow down network

growth.growth.

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

Private/free marketPrivate/free marketAgainst:Against: Profit driven.Profit driven. Might monopolise the market/network.Might monopolise the market/network.

Show me the money!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!Show me the money!So where does the money come from?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 benefitsOther benefits Stimulating effect on local economy (teleworking, Stimulating effect on local economy (teleworking,

companies promoting their services & products via a digital companies promoting their services & products via a digital medium).medium).

Educational use ( the internet is the worlds largest library).Educational use ( the internet is the worlds largest library). Opportunity for non-profit & charities to promote their Opportunity for non-profit & charities to promote their

activities via the network (portal site).activities via the network (portal site). Attract new investment to the town/city (good economical Attract new investment to the town/city (good economical

development potential). development potential).

ConclusionConclusion The demand is only growing (wifi enabled The demand is only growing (wifi enabled

laptops, pda’s & phones).laptops, pda’s & phones). Technology is available (WiFi, Wimax, Mesh).Technology is available (WiFi, Wimax, Mesh). The services are only increasing (web 2.0, The services are only increasing (web 2.0,

IPTV, VOIP etc.).IPTV, VOIP etc.). ““Social responsibility”: Internet access needs Social responsibility”: Internet access needs

to be made available to everyone.to be made available to everyone. First in the market will reap the benefits.First in the market will reap the benefits.