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US cities' Wi-Fi dreams fading fast
- Thread starter rpm
- Start date
There are some real lessons to be learnt here. It should not be surprising to learn that "...municipalities continue to focus on large, ambitious public wireless projects that have no clear path to profitability...". Yet some people do seem to be surprised that this kind of approach cannot possibly result in a sustainable service model.
There is certainly a case for this approach in the provision of water, or electricity. However, telecoms has, in recent years, defied the "utility" model that worked for it 50 years ago. The market, the services and the technology are all changing so fast that only the most flexible, agile players can keep up. Generally, that means privately-funded companies whose survival depends on getting the business model right.
This may also be a lesson to those who assume that, because lots of people are doing it, it must work. All that means is that, if it doesn't work, more people are going to be burnt.
The most telling statement of all is "When government gets involved in these projects, no matter what government, it just trips over itself." Now why does that sound so familiar?
There is certainly a case for this approach in the provision of water, or electricity. However, telecoms has, in recent years, defied the "utility" model that worked for it 50 years ago. The market, the services and the technology are all changing so fast that only the most flexible, agile players can keep up. Generally, that means privately-funded companies whose survival depends on getting the business model right.
This may also be a lesson to those who assume that, because lots of people are doing it, it must work. All that means is that, if it doesn't work, more people are going to be burnt.
The most telling statement of all is "When government gets involved in these projects, no matter what government, it just trips over itself." Now why does that sound so familiar?
In the US wireless CDMA 1XRTT is really cheap. Some of the MVNOs are offering unlimited web browsing on a cell phone for just 19 US cents per day (< 6USD / month). It's hard to compete with these kinds of services which are available in most parts of the US not just in one city.
Sprint MVNO
http://www.stimobile.com/index.aspx
Sprint MVNO
http://www.stimobile.com/index.aspx