THE FUTURE IS CLOSER THAN IT APPEARS
Well, it looks like a private company called MetroFi is going to do what a veteran ISP Earthlink says is difficult to do financially. From the newswires, comes this press release:
"MetroFi, the leader in designing, building and operating free citywide Wi-Fi networks, announced today it has been selected by the City of Portland, the 28th largest city in the United States, to deliver and operate a citywide Wi-Fi network that will provide free wireless Internet access and substantially improved public services to Portland residents..."
"The City of Portland, which spans 134 square miles and has a population of approximately 540,000, will be blanketed by a state-of-the-art Wi-Fi mesh network. Residents and visitors of Portland will have wireless access to 1Mbps Wireless Internet at no cost. Portland's public works field personnel and first responders will have greatly expanded access to wireless network services to facilitate more responsive data communications."
The cost to lay down this network is estimated to be around $10 million. The price to consumers? Free for the basic ad-based service. Again, from the press release:
"MetroFi's free Internet access services will be supported by advertising from local and national advertisers. Customers who want an Internet access experience without ads can connect to the MetroFi network premium service for approximately $20.00 per month. Customers accessing the network will see a banner or text advertisement in the browser's frame.
Portland-area businesses can leverage the local and regional nature of the network by providing links to their websites, coupons and announcements for users who are connected in close proximity to their establishment."
In a couple of posts a few days ago, I highlighted similar efforts by Google and Earthlink in the US, and Pipex in the UK (see here and here). In the last one, I also posited that Microsoft and AOL may want to consider similar moves. Also in that post was a quote from Earthlink CEO Gary Betty saying:
"We still don't believe in the free model much," Betty said, citing the expense of maintaining and expanding a network and providing support services to consumers."
Looks like the city fathers of Portland had doubts that MetroFi could make this work as well. As Om Malik highlights in his post, this quote from the Portland Business Journal:
"However, the city “had discussions with their venture partners and with one board member” in particular, said Lampe. All the venture partners are very much interested in the Portland project, and Frank Marshall, a MetroFi board member, has assured the city that if necessary, he and MetroFi CEO and founder Chuck Haas would handle the entire cost of installing the city’s wireless network between them. The network is estimated to cost at least $10 million."
Again, as I stressed in the earlier post, the economics and business models around all this are early. And the goal again for most similar efforts is around creating,
A nation-wide, non-cellular, broadband wireless consumer online service that charges mainstream, flat, monthly access fees.
It's good to see some entrepreneurs like MetroFi stepping up to the plate.
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