The dream of creating a citywide wireless network, first begun under Mayor John Street, seemed nearly dead last month when Earthlink decided to abandon the effort. A group of local investors has breathed new life into the proposal by announcing plans to purchase the network on Tuesday. Good news for Wireless Philadelphia? Perhaps. But the new version of the initiative looks dramatically different than the original conception of the project.
The new group of investors came together so quickly that they haven't even figured out a name. The firm, currently called Network Acquisition Company, is led by businessman Derek Pew and former Verizon executive Mark Rapp, The investment group plans to dramatically alter the business plan.
First, the intended customers have changed. Earthlink provided residential internet service for $20. The new company plans to sell high speed internet access to businesses, hospitals, universities and other large tenants. Singing up big anchor tenants is very different from signing up thousands of individuals.
Second, it is not really going to be "wireless" anymore. The new company plans to hardwire customers to high speed internet. That's an important distinction because it may be the key to solving the technological shortcomings of the original plan. However, it does represent a fundamental shift in what kind of connection will be used to access the network.
Outdoor wireless is still a part of the plan. The new company intends to provide free internet access to anyone who can pick up the signal. However, it remains to be seen if the investment group can strengthen the signal and extend coverage to the areas of the city currently without service. The new company has already made clear that they will not be providing customer service to users of the free wireless network.
Another big question is digital inclusion. Providing internet access, computers, and technical literacy to low-income individuals was the centerpiece of the original proposal. The new investors have said that they plan to continue that portion of the initiative, but it will clearly take a different form. Since the new company will not be signing up new residential customers, how exactly will it provide services to poor households?
There is one component that has stayed the same: the cost to city taxpayers. The new owners of the network say they can accomplish everything without a major new investment of public dollars. If that wasn't true, the deal probably could not have happened.
Public funding of Wireless Philadelphia been a thorny issue in the past. "It's Our Money" covered this angle of Wireless Philadelphia story during city budget hearings. City Councilman Frank Rizzo, an early opponent of the plan, pointed to $200,000 in the budget of the Mayor's Office of Information Services for Wireless Philadelphia.
The deal is extremely new, so I don't want to rush to judgment. However, we need to keep a close eye on this new formation of Wireless Philadelphia. It is very different from the original plan. The original spirit of the proposal should be honored.
Comments (1)
You know, it's not often Philadelphia makes a Silicon Valley tech blog. This is worth a read for a different perspective:
http://valleywag.com/5017358/philadelphias-wi+fi-network-saved-for-now-but-the-time-for-citywide-wireless-has-past
Posted by Evan | June 19, 2008 2:08 PM