Word: networking
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Citizens of Corpus Christi, Texas, can thank a snapping dog for the free wireless Internet they enjoy around town. After the pooch took a piece out of a utility meter reader, officials decided they needed a Fido-free system. The city built a small wireless-fidelity (wi-fi) network that transmits meter data from homes via the Web. The pilot worked so well that Corpus Christi dreamed big, using tax dollars to fund a $7.1 million, 147-sq.-mi. network that went live last month. Now park sunbathers can Web surf and this town of 300,000 is home...
...make government more efficient and to stay competitive, the financing appears shaky, and it's uncertain whether the plans will be cost-effective. Big questions remain: What will consumers pay for citywide access? Will advertising sustain free models? And will users really be attracted to a network that lacks speed, security and privacy? The risks are considerable--up to $25 million in capital costs per system plus operating funds. "Half the cities run into funding barriers," says Peter Orne, Wireless Internet Institute's editorial director. "We're still waiting for an unqualified big-city success...
Communities are nonetheless welcoming wireless--public or private--because building a wi-fi network is a steal compared with laying cable, which can cost 10 times as much. Over the next three years, U.S. towns will pony up nearly $700 million to build municipal networks, predicts MuniWireless.com As a public utility, wi-fi has undeniable benefits. City workers can use low-cost VOIP (voice-over-Internet protocol), and police and firefighters have a high-speed bandwidth for on-the-go access to data like criminal records and building plans or live shots from security cameras...
...telcos, including Verizon in New York, argue that city-owned systems have an unfair advantage over privately run ones--which could stifle competition. "Wi-fi as a public service has serious issues like network congestion and security," says Eric Rabe, Verizon's senior vice president for media relations. "Do you really want your government handling your e-mail?" Public outrage caused the telco fight to fizzle, with many bills getting killed or modified. City wireless is set to become a $1.2 billion market by 2010, according to analyst firm ABI Research; AT&T, Verizon and Sprint Nextel spin-off Embarq...
Going head to head with the telcos is EarthLink, a big player in dial-up but a company that was falling behind in broadband because of the high prices cable companies charged for access to the network. EarthLink (projected 2006 revenues: $1.3 billion) is banking on muni wi-fi to grow sales, closing deals with seven cities in public-private partnerships. EarthLink owns and operates the network while the city contributes money or light poles to nest radios for connectivity. The company will cut costs by selling access to wholesale providers like DirecTV. Philadelphia created a government-supported nonprofit...