MuniWireless Texas 07 Kicks Off!!

Business Models - Glenn Strachan

Glenn's background comes from working overseas in the Developing World, building wireless networks in Africa and Eastern Europe. He built the first country-wide network in Macedonia, for instance.

Non-profit Organization Model - using a new organization to create, fund, and manage the network provides flexibility in funding and pricing, among other things. Philadelphia, San Francisco, and Boston.

Cooperative Model - Geek-led, weave together grass roots access points into complex FREE networks.

Contracting Out Model - hands off approach in exchange for discounted services. Cerritos, Madison

Advertising Model - using ads to support the costs of the network. Annapolis

Public-Private Partnership Model - the most popular model by far, the public entity seeks a private partner to cooperate on a network project. San Francisco, Philadelphia, Rhode Island, Macedonia

Glenn focused some on his experience with Macedonia, where Internet penetration use grew in a year from 4% to 14% in a year.

Over 300 RFPs processed in the past 12 months.

Municipal Model - City owned and operated. Chaska, Corpus Christi

Government Loan-Grant Model - in favor for rural broadband solutions...

Other Models: Educational Purposes Model, Off-Peak v. Peak; Free Residential/Fee for Commercial-Govt, etc.

Cost Savings potential for a city of 40K population - $1.2 M!! Including ...
Pub Safety 72K
Schools and T-1 Lines 120K
Muni Backhaul - 50K

The Role of the Nonprofit - Anne-Marie Fowler, SeaKay

SeaKay's slogan is "Opportunity. Broadband. Everyone." Fowler focused on what a non-profit does well - it is entrepreneurial, more than non-profit-like...a success enabler with the community in mind. If the network is more profitable, the penetration increases. Non-profit brings focus to the project, acting in a bridge role. I like this one " the non-profit is the dash of salt in the soup"... business modeling, finance modeling, consensus building, facilitation, economic development, service learning (to educate parties to the network).

Rather than keep a non-profit as an afterthought, consider what adding a non-profit to the mix to bring in more versatility to the project. They can open up new opportunities and perspectives. Adding social goals requires financial profitability, ironically, the non-profit ensures the finanicial soundness of projects, so that there is money to fund the social goals.

Some shared objectives of non-profits and for-profits: Coverage Ubiquity and Customer Ubiquity
Local Relevance and Sustainability
Cutting Edge Technology that Works
Open Markets

The SeaKay Network Model, was next, where Anne-Marie elaborated on the Portfolio Theory, demonstrated here with one of those flower-shaped graphics, showing that putting a basket of different assets together is a key way to manage revenue risks, something a non-profit can help a city do - put philanthropic, private, and public revenue sources together.

Seakay's Digital Opportunity Initiative - all technology users are customers and should be treated as such!

Applications - Ken DiPietro, NextGen Communications

There is no one right business model for a network - but, there are a bunch of bad ones.

Stay away from Kbs - that's 20th Century - need to think about Mbs, even Gbs. Focus on several years into the future to futureproof your network.

Good list of high-bit rate applications - Get this!

Higher Initial Investment = Greater Return (and Future Proofing!)

The Future is Here and more is coming on fast: YouTube / Video on Demand & Business quality VOIP --- and see Joost, a new video-on-demand service as the next Napster, which will bring huge demands on networks...and also, Polycom's RPX HD - Real Presence Experience and High Definition) see Polycom's application

Business Model, Applications, and Network Design are all tightly entertwined.

Wireless Mesh Network Design - Drew Lentz, Meshtek

Overview of technology currently available...Mesh Networks have evolved to provide more value:

Generation 1: Single Radio & Frequency
Generation 2: Dual Radios & Frequencies
Generation 3: Multiple Radios & Frequencies, Dedicated Bandwidth

This analysis showed a preference for more and more complicated equipment...one challenge I'm familiar with, which I believe a planner should balance and that Drew finally brought up, is the cost per node and its impact on overall network budget. You will always need to balance technology capability with requirements (how you want to use the network) with equipment and operating costs, to find the balance that works for you.

Generation 4 will be exciting - single chassis with modular design, and you can BYOB - bring your own bandwidth - WiMAX and Wi Fi will play complementary roles in this new industry, not a case of either - or. I agree, they will co-exist and provide different functions, because both technologies have their own strengths - combined, they are better than separate.

Community-Based Networks - Ash Dyer, MIT/Cambridge, MA

Bring Your Own Router - the Socialist Perspective :)

Super Geeks teach a city how to do networking. Very energetic and passionate presentation!

In turns of cost allocation for connectivity, out of a $40 Broadband bill, $15 is for last-mile access, $16 is for Metro-access - most of the costs are local...

Bring serious capacity into injection points, then use ad-hoc mesh nodes - plug and play. That is the theory. *(From my conversations, there is considerable complexity remaining in network configuration, deployment, and operations, even with Meraki nodes - we are not there yet, IMHO - I think these home-grown community networks, which look good on paper, require a sophisticated user base to work - I'll continue to think so until convinced otherwise - Comments?).

Good model for consensus building! Get this...

I like this one - technology and network support, leverage high school students, volunteers, and/or outsourced firms or city departments.

Digital Inclusion - Karen Archer Perry, Karacomm

How will the community benefit? With public involvement comes the expectation of community benefit...

Leaders need to step up and communicate that the service windows are going away and that everything is going on-line...

Access, Affordability, and Appicability (aka access, speed, digital literacy, and equipment)

On Access: Pew Center says 68% of Americans use the Internet, but the population is off-line tends to be minorites, seniors, disadvantaged...so these factors need to go into program design.

Network Speed is uneven ... 42% have high-speed Internet, but that's under 200 Kbs...when speed/dollar is measured, we stink in terms of value for broadband...

Application Use and Relevance varies widely across user groups.

PC Availability mirrors general ICT access - have to keep in mind also, the age of the PC, because functionality declines with age!

For Success in Digital Inclusion -
First: Vision, Plan, Programs, & Partners
Then: Implement, Evaluate, & Extend

Contract Considerations - Jim Baller, The Baller Herbst Law Firm

Legal Issues are very important ... contracts are new and still being tried out...

Jim gave a fast-paced review of regulatory and legal issues - too complex to cover here - SORRY! His website is a great resource, by the way, so check it out!.

That's all folks - laptop battery going dead, have to go look for an electric outlet...Wish there was wireless electricity, only if Tesla had lived longer...sighh.