July 31, 2007

WiFi needs investment, expert says

By MICHAEL NOVINSON
of The Chronicle

     No single entity can afford to drive a WiFi network, stressed Karl DeLyria of Metaskills Consulting during a July 24 Q-Life meeting.
     Q-Life plans to explore WiFi options for the region, particularly in the downtown area.
     DeLyria said that successfully implementing a WiFi network requires a broad density of committed stakeholders. He has installed WiFi in Corvallis and Port Huron, Mich.
     “You can’t just roll it in and turn the thing on,” DeLyria said. “It just doesn’t work.”
     Prior to installation, a city must recruit a base of stakeholders who will contribute to the system in exchange for part of the revenue, he said.
     “There has to be enough going into it and managing infrastructure that everybody can take back out,” DeLyria said. “No single entity can afford to put it all in and expect people to come.”
     He warned against an “If you build it, they will come” mentality, noting that MetroTime employed that line of thinking when they installed WiFi in Portland. They now have a 40 percent failure rate.
     Hundreds of wireless “ghost towns” exist across the nation, DeLyria said, where service is installed, but a lack of money or support eventually causes the network to fall apart.
     Some of the stakeholders can actually be competitors to WiFi development, he noted. In Corvallis, he worked with broadband companies to fund WiFi.
     “Through the stakeholding process, each and every entity that’s involved in the community gains something back,” DeLyria said.
     He recomended getting entities such as the water, sewer, or police involved since they do not require any bandwidth or affect network performance.
     For example, WiFi would enable police officers to file reports from outside the office. In Washington County, public officials mapped out wireless hot spots where police officers and others could connect to the network.
     DeLyria said that WiFi typically costs $150,000-$200,000 per square mile to deploy. Annual recurring costs are normally $10,000-$12,000 per square mile.
     In Port Huron, customers are charged $18 per month for WiFi, while the wholesale cost is only $9-$10 per month. This profit margin has enticed internet service providers to enter the market and maintenance the network.
     Most cities also provide discounted or free service for low-income residents and guests. Options include limited access, low-cost access for a period of time, or low-cost all-day access.
     City Manager Nolan Young said the city is experiencing a sense of urgency.
“We’ve got a community that’s about to have wireless service and we don’t have the anchor tenant,” he said.
     However, DeLyria said the project could be spread over many years.
     “I don’t think you have to build the whole damn thing at once,” he said. “I think you can start putting up some things [soon].”
     Link Shadley suggested that the city recruit the PUD, businesses, and county and state buildings to reduce costs.
     Young hypothesized that, for the downtown area, Q-Life could install the hardware while vendors and internet service providers could provide services and take care of maintenance. He anticipated having a guest program and school program.
     Board member Bill Lennox thought that companies would support connecting the future cruise dock to the WiFi network. DeLyria said that major WiFi developments occur at marinas and truck stops.
     DeLyria suggested that Q-Life create a vision for the next three to four years. He said they should speak to potential stakeholders, the college, and existing internet service providers.
     DeLyria also said that Q-Life should organize and establish placement rights and work with multi-tenant residential units.
     “I look at this community and I really think it can be done,” he said.
In other Q-Life news:
     —The board unanimously re-elected Dan Ericksen as President and Erick Larsen as Secretary. It unanimously elected Jim Broehl to the vacant Vice President position.
     —The board unanimously approved a dark fiber lease procedure, amendments to the line extension policy, and amendments to the service rates.
     —John Amery and Young proposed looking into a phased redundancy approach plan for Aristo Management, with Larson suggesting a three-phased plan based on available funds.
     —The next Q-Life meeting will be held September 11, 2007 at 5:30p.m. There will be no August meeting.