802 Planet reports a new study from the New York City Council is recommending that the Big Apple throw open the competitive bidding process for its annual $130 million phone and Internet bill in order to leverage one of the most expansive — and underused — fiber optic networks in the country.
In so doing, New York City could not only cut its annual telecom bill, but would also be in a position to deploy wireless networking links as the “last mile” connecting metropolitan area networks. In addition, it suggested using the fiber to deploy free Internet access with a Wi-Fi Network in Brooklyn’s Prospect Park.
The 22-page study, “Network NYC: Building the Broadband City“, released Thursday, recommends that the Mayor’s office competitively bid the city’s $130 million annual phone and Internet bill.
New York City is the largest municipal buyer of telecommunications goods and services in the U.S., said the report. The Department of Information Technology and Telecommunications (DoITT) manages franchise agreements for 21 separate fiber-optic companies, as well as a portfolio of over 2,220 municipal rooftops potentially ripe for wireless deployments.
The report suggests “secure, point to multi-point wireless last mile or last hundred feet links, can distribute bandwidth wirelessly to all the various municipal sites off of the one building’s fiber backbone.”
The report also said excess fiber capacity, built as a consequence of city funding, should be open to third parties at competitive wholesale rates.
“Dark fiber” is everywhere; under city streets, overhead on utility poles, connecting cities.
Indefeasible Right of Use (IRU) is an agreement to use “dark fiber”. It has been used in transoceanic fiber, and can be used to lease capacity or a facility in a region. It allows an organization to enter the market but bypass the costs associated with a buildout.
Agreements with BPA’s NoaNet or city-built fiber networks like Portland’s I-Net, might allow backbones to be used cost/effectively with a percentage of revenue returned to the owner.
TeloPhase’s Community-Based Network model is built to be scaleable and portable. It provides broadband services for 25% to 30% less than current DSL subscriber rates. In addition, TeloPhase returns a minimum of 75% of its operating profits back to sponsoring municipalities. Ottawa’s fibre-optic cables with wireless nodes may Cross The Digital Divide with every resident having access the Internet through fibre-optic pipes, wireless Net connections on cell towers and DSL connections over phone lines. SkyRiver.net provides 802.11b service on cable plant like Time/Warner Cable - or Portland’s I-net.
“Free” wireless city-clouds might be given serious consideration. Cities might save enough on cellular bills to make it worthwhile. Then add in revenue from MP3s, ring-tones, messaging, location-based services, Video On Demand, games and other services. The market for Ringtones alone is over $1 billion. Put them on your broadband menu for 5% off the top. Location-based advertising could deliver targeted eyeballs (and transactions) for advertisers. Free connections pulls them in. Charge for support. Subscription fees restrict your market.
The market should be open to everyone. Like radio. Like Wal-Mart.
Churn is reduced and penetration explodes. “Free” wireless broadband could do to Wi-Fi subscription models what they are doing to “3G”. Make it go away. A $500 box with a wireless backbone will likely be available soon. Then VoIP on your PDA. It’s here! (.ra)
A regional “free” wireless network that makes good business sense may not be practical. But it would create a hell of a buzz.
The question is simple: can a “free” cloud make more money than a pay network? Enlist an Urban Planning college. Study “free” broadband. Find out.
The impact could be huge.
Cheap broadband with 70% penetration is common in Asia. The United States is loosing a trillion dollar intellectual property war.
That means you.
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