Another New Millenium Put-On Job

RBOC astroturf campaign Fwd: NEWS RELEASE: The Problem with Municipal Wireless Networks

Anti-muni wireless so called studies coming out full tilt.

So wrote Gordon Cook, wireless expert and telecom analyst, about an email pertaining to a new report by Competitive Enterprise

"I was REALLY NAUSEATED by this. This was spam... they found me and sent their stuff. some folk may or mnay not want to give them a piece of their mind"

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The Problem with Municipal Wireless Networks

Study: Cities Could Be on the Wrong Path with "Wi-Fi" Spending

Washington, D.C., February 3, 2005-Around the nation, several major

cities are considering funding programs to construct Wi-Fi wireless

broadband networks for Internet access. Advocates of these municipal

Wi-Fi projects argue that they will be inexpensive to operate,

foster new business investment and help bring access to underserved

communities, but a new study by the New Millennium Research Council,

co-authored by Competitive Enterprise Institute Technology Counsel

Braden Cox, tells a much different story.

 

The study, Not In The Public Interest - The Myth of Municipal Wi-Fi

Networks, details that, among other potential difficulties, cities

are focusing solely on the start-up costs of wireless broadband

networks and ignoring the impact on private sector competition.

"Municipalities that enter the wireless broadband market make it

even harder for private firms to compete," says Cox. "Instead,

municipalities should focus on ways to make it easier for private

companies to provide service, such as removing franchise licensing

barriers and making right-of-way access available on terms that are

fair, administratively efficient, nondiscriminatory, and

pro-competitive."

 

Municipal Wi-Fi networks, though sometimes a collaboration of public

and private efforts, are generally at least partly paid for with

taxpayer funds. Because of that partial (and sometimes complete)

subsidy, municipal networks make it less attractive for

telecommunications companies to invest in large-scale broadband

deployment. In addition, urban planners are often keen to use

technological infrastructure as a way of attracting new business

investment in certain locations. There is little evidence, however,

that millions spent on building Wi-Fi will necessarily attract the

expected investment to targeted areas.

 

While the intentions of city officials are admirable and Wi-Fi does

have positive benefits, the contributors to Not in the Public

Interest believe city ownership of wireless broadband networks is

not the solution for bridging the "digital divide" or encouraging

ompetition in the broadband market.

Read the full report athttp://www.newmillenniumresearch.org/archive/wifireport2305.pdf

CEI is a non-profit, non-partisan public policy group dedicated to

the principles of free enterprise and limited government. For more

information about CEI, please visit our website at

http://www.cei.org/

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