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Municipal Broadband Wireless North American Business Models
Axel Leblois,Co-Founder, W2iEUROCITIES Knowledge Society Forum - TelecitiesICT for Safe Digital Cities, BolognaJune 28, 2007
Municipal Broadband, North American Cities, 2006
$0$50
$100$150$200$250$300$350$400
Do
llar
Va
lue
(M
illio
ns
)
2004 2005 2006 2007
Municipal Wireless Broadband Market
Capital Investment in Municipal Wireless Broadband Networks Source: W2i/Yankee Group Research 2006
•Over 300 US Municipal Wireless Projects Deployed in 2006
•Mix of Municipal Ownership and Public-Private Partnership Models
Moving from Single Application Networks to Multi-Purpose Networks
Is it a multi-purpose network?
0% 20% 40% 60% 80%
No
Yes
Source: W2i/Yankee Group Digital City Survey, 2005
Municipal wireless networks are increasingly leveraged for multiple applications reducing costs and offering new services to citizens:
Public Safety/Police/Fire Meter Reading/Monitoring Field Inspections Intelligent Traffic Management Neighborhood/Community
Portals Educational Broadband Public Access Digital Inclusion
Public Safety: San Mateo (CA) Police Department
72 Officers in 40 Patrol Cars
Tropos MetroMesh:
• 3 backhaul points
• 37 access points
• 3.5 sq.miles
Applications:
• CAD, Records Mgt, Reporting
• Database access (LAWNet, DMV, video monitoring…)
Impact:
2 hours/day/officer saved
Workforce Productivity Increases: Medford (OR) Public Works
20 Public Works Crews on shared network among other municipal agencies
Motorola MotoMesh: Applications: Work order access from the field Impact:
1 hour/day/crew member Shared infrastructure with public safety
Future Impact: 20+ additional applications including: Records access Location based services GIS
Calculated Cost per Read - Personnel Costs
$(0.10)
$0.10
$0.30
$0.50
$0.70
$0.90
$1.10
$1.30
$1.50
$1.70
$1.90
0 2 4 6 8 10 12 14 16 18 20
Year
Dol
lars
Current Drive By Fixed Network
Machine to machine communicationsCorpus Christi (TX) Water & Gas Utility System
Field Workforce Automation Scenario
City population 100,000
Local Government workforce
3% 3,000
Field workforce 30% 900
Productivity improvement 20% 180 man/years
Dollar savings $30-50,000/man/year
$ 5.4 to 9 million/year
*Assuming 20% public subscriber uptake
How are you financing the network build?
38%
8%
24%
44%
15% 14%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Localgovernment
entity budget/tax money
Bondunderwritings
Grants Dual fundingfrom privatepartner andcommunity
Privatelyfunded by
private partner
OperationalCost Savings
Source: W2i Yankee Group Houston Survey 2006
Patterns are starting to emerge attesting to a negotiation between local government and the private sector to determine the right mix of cooperation
Municipal Broadband Business Models
Business Model Benefits
Public/Private Partnership Philadelphia Minneapolis
Lower risk for community
Expert knowledge in network design and management
Private Ownership Rio Rancho, New Mexico Grand Haven, Michigan
Eliminates all risk, but removes flexibility and government having any role in network
Municipal Own and Operate Chaska, Minnesota Allegheny County, Maryland
Complete financial burden
Lack of expertise and knowledge in network build
Own and Outsource Corpus Christi, Texas Miami Beach, Florida
City owns network and outsources to integrator or service provider
Focus on government applications
Municipal Wireless: Key Observations
Measurable benefits in government operational efficiencies abound
Broadband wireless infrastructure deployment is first and foremost driven by the need for “Better City Management”
“Cheap Public Access” as a primary driver for deployment of wireless infrastructure is highly speculative and should be viewed as a secondary objective, or side benefit
A Resource for Municipalities Involved with Broadband Wireless Networks
www.w2i.com
Thank You
Wireless Internet Institute 225 Franklin Street, Boston, MA 02110
Tel: (617) 439 5400 Fax: (404) 252 0628
www.w2i.com
