As previously noted and predicted in this space, the flood of offers by service providers to build out city-wide networks on their own dime with no service commitments is over: Clovis, Calif., is the latest case in point. The city found after performing quite a bit of analysis that they couldn't find a business model that would work, and costs were too high to hire a firm. This article doesn't note whether the costs are upfront but could be conserved through savings in telecom fees, like reducing leased lines or replacing cell data network subscriptions.
Clovis's information systems manager told the Sacramento Bee: "Nine months ago, companies were lining up at the door saying they wanted to do it for free." This comment has been echoed across the country. With EarthLink's at least temporary abeyance of new bids, with MetroFi having a new model (and its hands full), and Kite not appearing to participate in new bidding that I'm aware of outside the Southwest, the most prominent early firms in the space have checked out for smaller towns, at the very least.
The manager, Jesse Velez, also noted that a system installed today could be obsolete in a couple of years. I might normally ridicule that statement, because that's universally true, except that metro-scale systems are at a unique juncture. In two years, all equipment vendors will have multiple-antenna (MIMO) systems, with 802.11n as an option for improving range and bandwidth. Mobile WiMax will either be succeeding or crashing in the marketplace.
It's very reasonable for a city or town to say today, "Let's wait." There's going to be a shakeout in the provider market in the next three to six months. I also suspect many of the awarded bids and bids-in-progress for smaller towns fall apart--we've seen the leading edge in the last few weeks of that. And 802.11n is barreling down the road with interim certification for the draft and a final version due next spring. It's time to keep experimenting with parks, downtowns, and business districts, but the time doesn't seem ripe to launch major new efforts.
As a resident of Corpus Christi, I would say thus far EarthLink is doing a miserable job. They took over the city network last year and launched the service several months ago. To this day I have seen no effort to promote it. I would say virtually no one is aware of the service and the small number that used it has since quit after the free period ended.
This raises serious questions for me and I'm sure others. What exactly is going on at EarthLink that they wouldn't want to advertise their service to the public? It is almost as if they don't want people to sign up. Problems anyone?
Wi-Fi works well at the grass roots level. Are there widespread problems with wireless home networking? Don't think so.
When the mindset, and the business model, is modified to include local businesses and residences in the provision of Wi-Fi service, we'll see cities making progress.
But right now, everyone is thinking so 'Top Down', they don't realize the obvious answer.
Good review Glenn. You and Craig Settles have been consistent with your position that someone will need to pay for these services-effectively taking the Politics out of the equation.
Unfortunately some of the first generation Mesh Vendors and providers used this ploy to capture the business and equally frustrating is the fact that many of these networks will struggle and fail because of the technologies being deploy and not just because they were offered free.
I would add that there are some Mesh Vendors delivering what I would consider Carrier Grade Mesh products (Strix and BelAir). Both are offering 3 & 4 Radio Mesh systems today that can support the Access and Backhaul bandwidth required today and near term.
With 802.11n we will first see it delivered as a backhaul radio (5Ghz) delivering 100+Mbps between Nodes and extended range. Second Intel will Commit to build and deploy a dual radio 802.11n based product (2.4 &5Ghz)for their Centrino (eliminating the a/b/g) along with their WiMAX 802.16e Mobile)chips. This should cover the market until 700Mhz becomes available (late 2009-10)in the gateway backhaul side.
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