Time to Consider Alternatives

Labor costs are always inflationary - they go up over time. Cities traditionally have few options to raise revenues other than through tax increases, which is often politically infeasible. In tight economic times, revenues retract, but fixed costs can stay high. But technology costs trend down over time, just as capabilities trend upward. The essence of investing capital in technology is to bring more efficiency by enabling new business processes. By doing things differently through technological innovation, city managers bring the focus around to doing more with less.

And the added bonus when it comes to Wi Fi Mesh networks in particular, is that a city network provides extra bandwidth after all the municipal application needs have been met. The city can use that surplus bandwidth as an asset to generate additional NON-TAX revenue. This is an equation that features both greater cost control and enhanced revenue opportunities. That is a message that all cities should embrace, but certainly cities under stress. But cities under stress tend to go the other way, don't they? Go figure.

Indeed, the conventional approach for cities under stress is fiscal conservatism: clamp down on spending, seek to get more work out of existing staff, using hiring and salary freezes and reductions in force. Does that make sense? Fearful employees may produce more at first, but it seems that over the long haul you would actually get less when you treat employees that way.

Its actually a good time to invest in metropolitan broadband, even as the economy would seem to indicate that most cities will pull back. The cost of equipment has come down, while performance levels and capabilities are up. Vendors are highly motivated, and new business models show the way to a low-risk project. And what applies to all cities goes double for a city that is struggling to get by under the conventional business model reliant upon outsourced services and in-house labor, in bad economic times. Adjust the equation with a city network and watch the potential grow. If you want different results, you have to do things differently.

Look for interest to develop among cities out on the cutting edge, looking to make a name for themselves. Watch smaller towns and rural towns with few broadband options, who know they will be passed over in the first few rounds by private providers. Third World cities, especially cities and towns with large portions of disadvantaged populations will still be interested in metropolitan broadband. And cities hard-hit by real estate and other macro-economic downturns, like Vallejo, believe it or not, should be interested in a metropolitan broadband network project.

For when these networks begin to be viewed tools for business efficiency, as they truly are, then this argument will make more and more sense to those who come to it with an open mind.