[wplug] Be nice if we had such a freenet in Pittsburgh

[Patrick Wagstrom]

Drew from Zhrodague wrote:
>     Isn't the Downtown WiFi thing a municipality-subsidized network?

Incorrect.  Thanks to Verizon, municipalities must give right of first 
refusal to Verizon on an sort of municipal subsidized wifi network -- at 
least if I understand S30 from 2004 correctly and the current debate 
within the city.  I'd imagine most people know my stance of Verizon's 
perpetual failure to deliver for Pennsylvania and the incompetence of 
the state legislature to continue to give them tax breaks ($800M since 
1997, all for the nearly 100% unfulfilled promise of fiber to every 
school in the state which was supposed to be completed by 2000).

The downtown network actually breaks about even or makes a small profit 
from operating, and is run by US Wireless Online.   The equipment was 
paid for by donations from foundations.  There is currently a pretty 
ambitious project at CMU working with councilman Bill Peduto to 
understand to value proposition of wifi coverage in the city. 
Unfortunately, it faces several hurdles, the least of which is that the 
city can't really offer anything to entice someone to build such a 
municipal wifi (even if it's not municipal owned).  Their subscription 
would not cover the base cost, or even a substantial portion (as is the 
case in Philadelphia).  Nor can they offer free access to the light 
poles in Pittsburgh, because those are owned by Verizon and Duquesne 
Light.  Furthermore, economic analysis of the community has shown that 
only a few neighborhoods would most likely be profitable on their own, 
Greenfield, Sq. Hill North, Shadyside, and I think one or two of those 
south hills neighborhoods that I can't remember the name of and get lost 
when I go to.  So, for an independent player to move in, they have 
little incentive to go for the whole city, sorta like the current Fios 
rollout structure.

As far as muni-wifi undercutting current ISP revenue, well, honestly, I 
don't believe that comment.  There are many locations that have some 
sort of muni-wifi, and they have broadband markets that are still 
strong.  In most cases community wifi and household broadband service 
two different needs -- despite the fact that ILECs and even some CLECs 
will have you believe otherwise.

--Patrick