Funding the New Campus Connectivity Mark Faulkner Fred Siff Assistant Vice President Vice-President & Chief Information Officer Network & Telecommunication Services & Professor of Information Systems University of Cincinnati © M. Faulkner, 2005 This work is the intellectual property of the author. Permission is granted for this material to be shared for non-commercial, educational purposes provided that this copyright statement appears on the reproduced materials and notice is given that its use is by permission of the author. To republish or otherwise disseminate this work requires the written permission of the author. Or, Are You Still Selling Buggy Whips?

The New Campus Connectivity What is it The old world The AY world The new world Its issues User service expectations Business Technical Financial models are entirely different from the past and from each other No clear cut answers/directions/best practices yet – but here’s one approach

Campus Telecommunications Around the Turn of the Century Network & Telecommunications provided telephone service and even LD ~12,000 lines, including 3800 dorm phones recharge at monthly rate (below market, no cross subsidy) data networking (I1&2) gigabit Ethernet on campus, 45Mbps off (then; 150Mbps now) ~21,000 jacks recharge at monthly rate (below market, no cross subsidy) Isn’t this what you looked like? but when most access is wireless… will this work?

Campus Telecommunications in AY Wireless data is common by now 5 years, over 550 WAP sites (~ 50% of campus) Necessitated change in rate model short-term modification: charge at 3X the wired rate approved by governance committees, strong support But a short-term fix at best -- not good enough what about new technologies -- VoIP? cellular data service? need a rate model independent of technology to allow for the introduction of new technologies

Campus Telecommunications Now and into the Near-future This is a risk, because that world is uncertain, in flux. Just the sort of thing we should be discussing at EDUCAUSE 05. A Scary Vision: "by 2006, data network access from personally owned mobile devices will be the leading problem facing education IT managers" (.7 probability, Gartner Predicts, 2005) Scarier: The biggest challenge…will be meeting the expectation for servicing disparate devices that (we) do not own, control or even manage.

Campus Telecommunications Now and into the Near-future The challenge comes from not just disparate devices but from users with those devices interacting with disparate networks -- and expecting it all to work. network interoperability specific characteristics (speed, range, power, security…)

Why Enter the Market? It is a business opportunity each of 35,000 students has a cell phone why isn’t it ours? It is a service expectation increasingly, faculty (and many staff) have/want smartphones 14,000 of our clients for other services Yet should be a conscious decision based on a sound business case. We will cover the service expectations and technical issues, then the business case based on them.

User Service Expectations Start with user’s expectations. clients’ needs drive business execs have Blackberries/Treos/Smartphones – why not ‘us?’ isn’t this like the PC  laptop of 10 years ago? Do we have an obligation to deliver this new service? I s it the campus IT organization’s job? get out of the business? outsource it? avoid the issue for now, wait for clarification ? or define a new business & enter the market.

Business Issues Timing reinvestment traditional telephone infrastructure fully depreciated the greater good hyper-competition Community wants the service and is already paying for it – to someone else, without our economies of scale or value add

Wireless Service Providers AT&T Wireless Cingular Nextel Sprint T-mobile Verizon Cingular Sprint, Nextel T-mobile Verizon, MCI Smaller andRegionalcarriers likeVirgin Mobile,U.S. Cellular,and AllTel.

Business Issues Traditional wireless in place handsets w/built-in Wi-Fi Students #1 reason Americans are hanging up on Baby Bell’s Faculty would relinquish the office phone for a better alternative Revenue Potential leverage our buying power; create apps; sustainable model

Is it too early to make technology bets? Engaged IBM BCS to help us place our bet. sharpen our vision feasibility study identifies potential partners reviewed business plan Wi-Fi no bet for campus next frontier is beyond campus to community Wi-Max no real products available yet future appeal Educational Broadband Service (EBS) Spectrum

Is it too early to make technology bets? VoIP same old service, new delivery doesn’t change business but does provide business continuity Cellular & Smartphones risky business? big bet CDMA/GSM? BYOD equivalent to open architecture

Wireless Generation / Performance ProviderNetworkAverage Data Speed NexteliDEN / WiDEN / Kbps T-Mobile/CingularGPRS Kbps T-Mobile/CingularEDGE Kbps HSDPA3Mbps Sprint/VerizonCDMA/1xRTT60 – 80 Kbps Sprint/VerizonCDMA 1xEVDO200 – 300 Kbps EVDO Rev A3Mbps

The MVNO Model Mobile Virtual Network Operator (MVNO): Communications entity that provides service without owning a mobile license. “By 2010, the MVNO market will be comprised of 29 million subscribers and worth $10.7 billion in service provider revenue,” The Yankee Group, 2005 Buy wholesale – sell retail Can customize differentiated features Branded campus cell phone: Bearcat phones 3 bar coverage for 90% of campus “unlimited minutes” campus zone 5-digit dialing to University exchanges Integration to UM for single-message store

Wireless Service Providers AT&T Wireless Cingular Nextel Sprint T-mobile Verizon Cingular Sprint, Nextel T-mobile Verizon, MCI MVNO’s –(Disney,ESPN, CableOperators UC MVNO’s –(Disney,ESPN, CableOperators UC

The Community Model Uptown Cincinnati Community -- beyond the campus boundaries Creating community via the integrated network Leveraging buying power to the benefit of the community Adding Wi-Fi as an integral feature reciprocal roaming arrangements support guests and visitors free Internet Access easy login capabilities

Initial Steps in Uptown Wireless 350 dorm students Jan ‘06 A college faculty (~ 50 faculty) Jan ‘06 Focus groups develop custom apps develop service and funding models Then offer to all students all dorms the community …and the final slide in this presentation