Skip to main content

Municipal Wi-Fi Needs a Redefined Model

More than 400 cities in the United States have planned municipal Wi-Fi networks, but after a honeymoon period there is a widespread perception -- fueled by media reports of high-profile problems -- that the concept is fundamentally flawed.

According to a new study from ABI Research, however, there is a disconnect between that media-driven gloom and the reality on the ground. Municipal Wi-Fi can be a success, if its goals and business models are redefined.

According to vice president and research director Stan Schatt, "We need to change our expectations of what a municipal Wi-Fi network is actually good for, from free Internet access for all, to a narrower, higher value role centering on public safety and municipal workers."

The free consumer broadband Internet model, which helped sell the idea to the municipalities, is not sustainable in the long-term, says Schatt, but these networks are perfect for enhancing municipal worker's productivity and first-responder's emergency communications.

Enter PSIC, the Public Safety Interoperable Communications grant program. On September 30, the U.S. Federal Government allocated $1 billion to fund up to 80 percent of interoperable communications systems for emergency services.

"Whether that entire billion gets funneled into the equipment that's used for municipal Wi-Fi is questionable," says Schatt, "but we believe a good part of it will."

To negotiate this shift in priorities, municipal governments will have to back-pedal from the promises they made to voters about free universal Internet access and instead focus on improving public safety and efficiency. For Digital Inclusion, pre-paid Wi-Fi Internet access cards can still be distributed by social services agencies.

Under a revised business model, the municipality would become a paying anchor tenant and the provider would enable connectivity for mobile municipal employees and first-responders. Services would also include public space video surveillance for security or traffic monitoring.

Where the municipality sees monetary value in those services, the model succeeds. Meanwhile the service provider is free to sell additional services to consumers for a modest fee, stimulating local competition.

Popular posts from this blog

Banking as a Service Gains New Momentum

The BaaS model has been adopted across a wide range of industries due to its ability to streamline financial processes for non-banks and foster innovation. BaaS has several industry-specific use cases, where it creates new revenue streams. Banking as a Service (BaaS) is rapidly emerging as a growth market, allowing non-bank businesses to integrate banking services into their core products and online platforms. As defined by Juniper Research, BaaS is "the delivery and integration of digital banking services by licensed banks, directly into the products of non-banking businesses, commonly through the use of APIs." BaaS Market Development The core idea is that licensed banks can rent out their regulated financial infrastructure through Application Programming Interfaces (APIs) to third-party Fintechs and other interested companies. This enables those organizations to offer banking capabilities like payment processing, account management, and debit or credit card issuance without