Municipal Broadband Wireless North American Business Models Axel Leblois, Co-Founder, W2i EUROCITIES Knowledge Society Forum - Telecities ICT for Safe Digital Cities, Bologna June 28, 2007

Municipal Broadband, North American Cities, 2006 Capital Investment in Municipal Wireless Broadband Networks Source: W2i/Yankee Group Research 2006 Over 300 US Municipal Wireless Projects Deployed in 2006 Mix of Municipal Ownership and Public-Private Partnership Models

Moving from Single Application Networks to Multi-Purpose Networks Source: W2i/Yankee Group Digital City Survey, 2005 Municipal wireless networks are increasingly leveraged for multiple applications reducing costs and offering new services to citizens:  Public Safety/Police/Fire  Meter Reading/Monitoring  Field Inspections  Intelligent Traffic Management  Neighborhood/Community Portals  Educational Broadband  Public Access  Digital Inclusion

Public Safety: San Mateo (CA) Police Department 72 Officers in 40 Patrol Cars Tropos MetroMesh: 3 backhaul points 37 access points 3.5 sq.miles Applications: CAD, Records Mgt, Reporting Database access (LAWNet, DMV, video monitoring…) Impact: 2 hours/day/officer saved

Workforce Productivity Increases: Medford (OR) Public Works 20 Public Works Crews on shared network among other municipal agencies Motorola MotoMesh: Applications: Work order access from the field Impact:  1 hour/day/crew member  Shared infrastructure with public safety Future Impact:  20+ additional applications including:  Records access  Location based services  GIS

Machine to machine communications Corpus Christi (TX) Water & Gas Utility System

Field Workforce Automation Scenario City population100,000 Local Government workforce 3%3,000 Field workforce30%900 Productivity improvement20%180 man/years Dollar savings$30-50,000/man/year$ 5.4 to 9 million/year *Assuming 20% public subscriber uptake

How are you financing the network build? Source: W2i Yankee Group Houston Survey 2006 Patterns are starting to emerge attesting to a negotiation between local government and the private sector to determine the right mix of cooperation

Municipal Broadband Business Models Business ModelBenefits Public/Private Partnership  Philadelphia  Minneapolis Lower risk for community Expert knowledge in network design and management Private Ownership  Rio Rancho, New Mexico  Grand Haven, Michigan Eliminates all risk, but removes flexibility and government having any role in network Municipal Own and Operate  Chaska, Minnesota  Allegheny County, Maryland Complete financial burden Lack of expertise and knowledge in network build Own and Outsource  Corpus Christi, Texas  Miami Beach, Florida City owns network and outsources to integrator or service provider Focus on government applications

Municipal Wireless: Key Observations Measurable benefits in government operational efficiencies abound Broadband wireless infrastructure deployment is first and foremost driven by the need for “Better City Management” “Cheap Public Access” as a primary driver for deployment of wireless infrastructure is highly speculative and should be viewed as a secondary objective, or side benefit

A Resource for Municipalities Involved with Broadband Wireless Networks

Thank You Wireless Internet Institute 225 Franklin Street, Boston, MA Tel: (617) Fax: (404)

Existing Technology in Communities Source: W2i/Yankee Group Digital City Survey, 2005

2004 US Broadband Penetration By Income The Digital Divide Is Real 2004 US Broadband Penetration By Income 5x Difference in Broadband Availability BroadbandPenetration 0 10% 20% 30% 40% 50% 60% >$100k$75-$100kAverage$10-$30k<$10k Source: Pew Research, 2005

Knysna, South Africa Geography: Sub-urban Operating Area: 1,059 km². Population Served: 51,000 Cost: US$ 370,000 Local Champion: Knysna municipality Partners Include: Several local government agencies UniNet Communications Driving Factor: Cost effectively connect all 46 municipal branches with data connectivity and voice Secondary Applications: To improve local government service delivery To further differentiate Knysna as a destination of choice for businesses, tourists and citizens Provide low cost connectivity and voice solutions for citizens

Digital Cities Convention:Major Applications Priority driven by compelling ROI based business case:  Priority #1: service local government mobile workers  Priority #2: provide infrastructure necessary for job-saving and job- creating investments  Priority #3: digital inclusion  Priority #4: deliver lifestyle changing services to citizens Priority 1&2 are the short/medium term, lower risk compelling economic business case that higher risk priority 3&4 can leverage to achieve long term political goals 17,7 % growth 6.3% growth