[IP] Wireless Week - Report Critical of Philly's Wi-Fi Plan

[David Farber <dave@farber.net>]

------ Forwarded Message
From: <james.e.innes.cgs80@alumni.upenn.edu>
Date: Mon, 11 Apr 2005 12:07:52 -0700
To: <dave@farber.net>
Subject: Wireless Week - Report Critical of Philly's Wi-Fi Plan

Jim Innes (james.e.innes.cgs80@alumni.upenn.edu) has sent you an article.



Report Critical of Philly's Wi-Fi Plan
Read the full article at:
http://www.wirelessweek.com/index.asp?layout=newsat2direct&starting=1&pubdat
e=04/11/05&


WASHINGTON--A Bell company-supported think tank has issued a report that's
highly critical of the City of Philadelphia's recently announced plans for a
city-sponsored, city-wide Wi-Fi network.

"My principal conclusion is that the analysis and financial projections
contained in [the City of Philadelphia's Wi-Fi] business plan are simply not
plausible," says Thomas Lenard, senior fellow and vice president of research
at the Progress & Freedom Foundation.

Last Thursday, the City of Philadelphia began asking for bids on the $10
million Wi-Fi project that would provide low-cost Wi-Fi access to all
Philadelphia citizens across the city's 135 square miles of territory. The
project's aim is to provide low-cost, high-bandwidth connections for all
Philadelphia residents for about $16 to $20 a month. The winning bidder will
install the network by next summer. The city's plans call for services on
the network to be marketed, sold and billed by the 430 independent, private
ISPs operating in the city.

 "The Business Plan projects that Wireless Philadelphia [the city's plan]
will be able to offer wireless broadband access to everyone, everywhere in
Philadelphia, at a lower cost than competitive broadband offerings such as
DSL and cable modem," Lenard says. "Notwithstanding this rosy scenario, the
Business Plan asserts that this service [Wi-Fi] will not be offered by the
private sector. But there is no explanation as to why the private sector
would pass up such a profit opportunity." 

 The foundation also issued an accompanying essay questioning the wisdom of
local governments' involvement with the rollout of high-speed networks.

 The Progress and Freedom Foundation is backed by many high-tech companies,
including big local wireline phone companies such as BellSouth, SBC
Communications and Verizon Communications, as well as big wireless companies
like Nextel Communications and T-Mobile USA. The city of Philadelphia got an
exemption last fall from a state law that restricted local governments from
installing wireless Internet access networks. Verizon Wireless had backed
the legislation that forced the city to accelerate its installation plans
and forced the city to give Verizon Wireless "right of first refusal" on any
other plans for wireless network services.




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