2006 MuniWireless State of the Market Report

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    -ETHODOLOGY

    3TUDYDESIGNDATATABULA

    TIONANALYSISANDMODELING

    WEREPROVIDEDBY'UY#URRIER

    OF-ARKET!RTMEDIAWORKS

    A.EW9ORKBASEDRESEARCH

    ANDMARKETINGRMSPECIAL

    IZINGINNEWMEDIA#URRIER

    HASHELDVARIOUSRESEARCH

    POSITIONSAT:IFF$AVIS)NC

    ."#AND'RUNEERICR*AHR

    53!0UBLISHINGAUTHORED

    NUMEROUSWHITEPAPERSAND

    ANALYTICALREPORTSANDWRITTEN

    ARTICLESFOR0#-AGAZINEAND

    9AHOO)NTERNET,IFE

    &IELDINGANDDATACOLLECTION

    SERVICESWEREPROVIDEDBY

    )NSIGHT%XPRESSARESEARCHRM

    BASEDIN3TAMFORD#4

    $!4!#/,,%#4)/.!SAMPLEOF-UNIWIRELESS

    COMNEWSLETTERSUBSCRIBERSANDEVENTATTENDEESWERE

    INVITEDBYEMAILTOPARTICIPATE

    INASHORTSURVEYABOUT

    MUNICIPALWIRELESSNETWORKS

    2ESPONDENTSWERESCREENEDBY

    PERSONALINVOLVEMENTINONE

    ORMOREMUNICIPALWIRELESS

    NETWORKDEPLOYMENTSWHETHER

    ASEMPLOYEESOFAMUNICIPALITY

    ORASANEMPLOYEEOFASERVICE

    PROVIDERORSYSTEMSINTEGRATOR

    BUILDINGORMANAGINGPUBLIC

    WIRELESSNETWORKS

    )NTOTALRESPONDENTS

    QUALIEDFORANDCOMPLETED

    THESURVEY%ACHWASASKEDA

    SERIESOFQUESTIONSABOUTUPTO

    TWOMUNICIPALWIRELESSNET

    WORKSWITHWHICHTHEYWERE

    MOSTFAMILIAR4HISRESULTEDIN

    DISTINCTDATASETSCOVERING

    THESCOPEUTILIZATIONAND

    EXPECTEDSPENDINGLEVELSFOR

    MUNICIPALWIRELESSNETWORKS

    CURRENTLYINSTALLEDOREXPECTED

    TOBEINSTALLEDWITHINTHENEXT

    THREEYEARS

    7%)'(4).'&OURSEGMENTSWEREUSEDFOR

    WEIGHTINGBASEDONMUNICI

    PALITYTYPEANDPOPULATION

    ,ARGECITIESPOPULATIONOF

    ORMORE-EDIUMCITIESPOPULATION

    BETWEENAND

    3MALLCITIES POPULATION

    LESSTHAN

    #OUNTIES4OWEIGHTANDPROJECTGROSS

    SPENDINGGURES-UNI7IRE

    LESSMOSTRECENTCENSUSOF53

    MUNICIPALWIRELESSNETWORKS

    CURRENTLYINSOMESTAGEOF

    DEPLOYMENTWASUSED3URVEY

    RESULTSINEACHSEGMENTWERE

    MULTIPLIEDBYAWEIGHTING

    FACTORREPRESENTINGTHERATIO

    BETWEENTHENUMBEROFSUR

    VEYSPERFORMEDTOTHENUMBER

    OFNETWORKSINTHATSEGMENT

    !3#2)04)/.4HREEDIMENSIONSWEREUSED

    INTWOSTAGESTOASCRIBEBLANK

    ANDDONTKNOWRESPONSES

    WHERETHOSERESPONSESWERE

    NEEDEDFORMODELINGANDGROSS

    SPENDINGGURES4HERST

    STAGEUSEDMEDIANVALUESFOR

    THEMUNICIPALITYSIZESEGMENTS

    DELINEATEDABOVETOASCRIBEATHEGEOGRAPHICSCOPEOFTHE

    NETWORKANDBTHENUMBER

    OFUSAGECATEGORIESMUNICIPAL

    BUSINESSORCONSUMERFORTHE

    NETWORKWHERETHERESPONDENT

    DIDNTKNOWUSAGES4HESECONDSTAGEOFASCRIP

    TIONUSEDMEDIANVALUESFOR

    SPENDINGPERSQUAREMILE

    PERUSAGECATEGORY33-5

    TOLLINNONRESPONSESFOR

    GROSSSPENDINGESTIMATES4HE

    DIMENSIONSUSEDFORTHISSTAGE

    WERETHENUMBEROFUSAGE

    CATEGORIESANDTHENUMBEROF

    MUNICIPALAPPLICATIONSFORTHE

    NETWORKUSEOF33-5ALLOWED

    THEWEIGHTINGSEGMENTS

    TOREMAININDEPENDENTOF

    SPENDINGASCRIPTION

    -/$%,).'!.$02/*%#4)/.37ITHINEACHCLUSTERREGRES

    SIONANALYSISWASAPPLIEDTO

    DATACONCERNINGYEAROFNETWORK

    INSTALLATIONOREXPECTED

    INSTALLATIONTOMODELTHERATEOF

    DEPLOYMENTAMONGMUNICIPALI

    TIESINTHATCLUSTERASWELLASTO

    COMPLETEHISTORICALGAPSPRESENT

    DUETOSAMPLESIZE4HEDEPLOY

    MENTRATESWEREWEIGHTEDBY

    CENSUSCOUNTSTOESTIMATE

    THENUMBEROFMUNICIPALITIES

    DEPLOYINGWIRELESSNETWORKSIN

    THEYEARS4HERESULT

    WASAGRIDSHOWINGTHENUMBER

    OFCOUNTIESLARGECITIESMEDIUM

    CITIESANDSMALLCITIESDEPLOYING

    INEACHYEAR-ARKETSIZINGWASACHIEVED

    BYUSINGTHEMODELEDNETWORK

    DEPLOYMENTGRIDINCOMBINA

    TIONWITHSURVEYDATAGIVING

    SPENDINGANDLENGTHOFTIMEIN

    EACHSTAGEOFNETWORKDEPLOY

    MENT3UMMINGTHESEGURES

    PROVIDEDTOTALGURESBYYEAR

    STAGEANDMUNICIPALITYTYPE

    FORSPENDINGONMUNICIPAL

    WIRELESSNETWORKS

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    %XECUTIVE3UMMARY

    Exceeding Expectations/UR-UNICIPAL

    7IRELESS3TATEOFTHE-ARKET

    2EPORTPOINTSTOASTRONG

    ROBUSTANDFASTGROWING

    53MARKETFORSPENDINGON

    MUNICIPALWIRELESSNETWORKS

    4OANYONEINTHISMARKETEITHER

    ASASUPPLIERCUSTOMEROR

    INUENCERTHATSHOULDCOMEAS

    NOSURPRISE

    7HATMAYBEASURPRISE

    HOWEVERISTHATTHEMARKET

    ISBIGGERANDGROWINGFASTER

    THANWEPROJECTEDAYEARAGO

    !MONGOURKEYNDINGSINTHIS

    YEARSREPORT

    3PENDINGFOR53

    MUNICIPALITIESWIRELESS

    NETWORKSWILLEXCEED

    MILLIONTHISYEARCOMPARED

    WITHLASTYEARSESTIMATEOF

    MILLION

    .EXTYEARSPENDINGWILLNEARLYDOUBLETOMILLION

    ALSOSIGNIFICANTLYHIGHER

    THANWEPREDICTEDONLY

    MONTHSAGO

    3PENDINGISSTARTINGTO

    SHIFTDEMONSTRABLYTOWARD

    LARGERCITIESANDCOUNTIES

    .ETWORKSAREBECOMING

    MOREMULTIFUNCTIONAL

    DESIGNEDTOACHIEVEMOREGOALS

    ANDACTASVESSELSFORMORE

    TRANSFORMATIVEAPPLICATIONS

    "USINESSMODELSCOVERING

    NETWORKOWNERSHIPAND

    OPERATIONARESHOWINGSIGNSOF

    SIGNICANTCHANGEAWAYFROM

    MUNICIPALCENTRICAPPROACHES

    INFAVOROFHYBRIDMODELSOR

    EVENOUTSOURCING

    4HESEANDOTHERNDINGS

    DISCUSSEDWITHINTHISREPORT

    POINTNOTONLYTOTHEMARKETS

    DRAMATICGROWTHBUTTOITS

    IMPORTANTCHANGESCOMPARED

    TOLASTYEAR

    7HATSHAPPENINGTODAY

    TOCAUSESUCHSIGNICANT

    INCREASESINSPENDINGAND

    IMPORTANTSHIFTSINHOW

    NETWORKSAREBUILTMANAGED

    ANDUSED4HEREARESEVERAL

    KEYDRIVERS

    3MALLTOWNSARESTILLDEPLOYINGPUBLICWIRELESS

    NETWORKSBUTTHENUMBER

    OFCOUNTYWIDEPROJECTSHAS

    INCREASEDDRAMATICALLY

    3MALLTOWNSANDRURAL

    COUNTIESARECONTINUINGTO

    DEPLOYCOMMUNITYWIDE

    WIRELESSBROADBANDNETWORKS

    !SWEMENTIONEDINLAST

    YEARS-ARKET2EPORTRURAL

    COMMUNITIESHAVEBEEN

    LEFTOUTOFTHEBROADBAND

    REVOLUTIONANDMANYARE

    STILLSTRUGGLINGWITHDIALUP

    CONNECTIONS4HETRENDAMONG

    RURALCOUNTIESTOISSUEREQUESTS

    FORPROPOSALS2&0SHASBEEN

    NOTICEABLETHISYEARANDASWE

    EXPECTEDHASACCELERATEDINTHE

    PASTMONTHS

    4HISSHOULDCOMEASNO

    SURPRISETOANYONE4HE

    LIKELIHOODTHATAMAJOR)30

    SUCHAS%ARTH,INKORAREGIONAL

    TELECOMPROVIDERWOULDBID

    ONAN2&0ISSUEDBYATOWN

    OFPEOPLEISVERYLOW

    "UTIMAGINETHEINTERESTOF

    )30SSYSTEMSINTEGRATORSAND

    EQUIPMENTVENDORSIFACOUNTY

    CANAGGREGATEDEMANDAND

    ISSUEAN2&0THATWOULDDELIVER

    APOTENTIALCUSTOMERBASEOF

    HUNDREDSOFTHOUSANDSOREVENMILLIONSOFPEOPLE)T

    BECOMESMUCHMOREAPPEALING

    ASABUSINESSOPPORTUNITY

    7HATSURPRISEDUSISTHAT

    URBANIZEDCOUNTIESNOWARE

    AGGRESSIVELYPURSUINGTHIS

    TECHNOLOGYANDHAVEBEGUN

    ISSUING2&0S2ECENTLY3UFFOLK

    AND.ASSAUCOUNTIESON,ONG

    )SLAND.9ISSUEDAJOINT2&0

    FORABICOUNTYWIDENETWORK

    THATWILLDELIVERWIRELESS

    BROADBANDSERVICETOALMOST

    MILLIONPEOPLE

    4HEAGGREGATIONOFDEMAND

    TAKESPLACENOTONLYONTHE

    COUNTYLEVELBUTALSOINALOOSE

    NETWORKOFCOMMUNITIES

    4HE7IRELESS3ILICON6ALLEY

    PROJECTHASBROUGHTTOGETHER

    MUNICIPALITIESANDTHEY

    HAVEJUSTAWARDEDTHEBID

    TOACONSORTIUMOF)"-

    #ISCO3EAKAYAND!ZULSTAR

    3EVERALCOMMUNITIESINTHE

    GREATER3ACRAMENTOREGION

    ARECONSIDERINGTHE7IRELESS

    3ILICON6ALLEYMODELTOBRING

    WIRELESSBROADBANDTOANAREA

    THATEXTENDSFARBEYONDJUST

    THECITYOF3ACRAMENTO

    -OREANDMOREFAST

    GROWINGCOMMUNITIESAREISSUING2&0SFORMUNICIPAL

    WIRELESSPROJECTSANDMANY

    OFTHOSEPROJECTSAREQUITE

    AMBITIOUSINTHEIRSCOPE

    ANDSCALE

    !SWEMENTIONEDINTHE

    LASTREPORTTHEMAINDRIVERS

    ARELOWERINGTHECOSTOF

    PROVIDINGMUNICIPALSERVICES

    ANDIMPROVINGTHEMATTHE

    SAMETIME!STRENDSIN53

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    POPULATIONANDDEMOGRAPHICS

    SEEMOREPEOPLELIVINGOUTSIDEMAJOR53CITIESINSUBURBSOR

    EXURBSCOMMUNITYLEADERS

    AREEXPLORINGWAYSTOPROVIDE

    ARICHERSUITEOFCONSTITUENT

    SERVICESNORMALLYSEENINLARGE

    CITIES!NEXAMPLEOFAFAST

    GROWINGCITYUSINGMUNICIPAL

    7I&ITOAPPEALTONEWRESIDENTS

    ANDBUSINESSESIS3AHUARITA

    !RIZONAWHOSEPOPULATION

    HASGONEFROMINTO

    THISYEAR3AHUARITAHAS

    ISSUEDABIDFORACITYWIDE7I&I

    NETWORKWHERE)NTERNETACCESS

    ISCOMPLETELYFREEOFCHARGE

    TORESIDENTS4HECITYPLANSTO

    USETHENETWORKFORMUNICIPAL

    PURPOSESSUCHASPUBLICSAFETY

    CODEENFORCEMENTANDMOBILE

    WORKERAPPLICATIONS7E

    EXPECTMORECOMMUNITIESLIKE

    3AHUARITATOTURNTOWIDEAREA

    WIRELESSBROADBANDTOMEETTHECOMMUNITYSNEEDS

    !NOTHERIMPORTANTFACTOR

    ENCOURAGINGFASTGROWING

    COMMUNITIESTOCONSIDER

    MUNICIPALWIRELESS4HE

    INTENSECOMPETITIONTOATTRACT

    NEWBUSINESSESTOTHOSE

    COMMUNITIES%CONOMIC

    DEVELOPMENTHASQUICKLY

    EVOLVEDINTOAPOWERFULFORCE

    BEHINDTHEEFFORTSOFCITIES

    ANDCOUNTIESINEVALUATING

    MUNICIPALWIRELESSFOREVERYTHINGFROMATTRACTING

    AYOUNGERMORETECHSAVVY

    WORKFORCETOREINVIGORATING

    STAGNANTDOWNTOWNBUSINESS

    DISTRICTSTOMAKINGPUBLIC

    TRANSPORTATIONSYSTEMS

    MOREUSEFULBYSUPPORTING

    ONBOARD7I&I

    ,ARGEMETROPOLITANAREAS

    AREDEPLOYINGMUNICIPAL7I&I

    NETWORKSMUCHFASTERAND

    MOREBROADLYTHANEXPECTED

    'OVERNMENTSEVENATTHE

    LOCALLEVELHAVENEVERBEEN

    KNOWNASEARLYADOPTERSOF

    TECHNOLOGY3OITWASNATURAL

    FORUSTOSEEBIGCITIESINITIALLY

    TAKEAWAITANDSEEAPPROACH

    TOMUNICIPAL7I&IUNTILITWAS

    PROVENTHATTHETECHNOLOGY

    WORKEDANDITWASASOUNDUSE

    OFMUNICIPALFUNDS"UTITSNOWCLEARTHATBIG

    CITIESARENOTWAITINGFOROTHER

    CITIESSUCHAS0HILADELPHIA

    AND3AN&RANCISCOTOGOLIVE

    ASWEPREVIOUSLYTHOUGHT3INCE

    OURLASTREPORT#HICAGO!TLANTA

    AND(OUSTONHAVEISSUED

    2&0SAND"OSTONISPLANNING

    TODOTHESAMEBASEDUPON

    THERECOMMENDATIONSOFTHE

    "OSTON7I&I4ASK&ORCEREPORT

    RELEASEDIN*ULY

    !LTHOUGHPOLITICIANSHAVEACQUIREDAWELLEARNED

    REPUTATIONFORBEING

    RISKAVERSEANDFORONLY

    CONSIDERINGPOLITICALLYSAFE

    SOLUTIONSITAPPEARSTHAT

    SUPPORTINGMUNICIPALWIRELESS

    INITIATIVESNOWISCONSIDERED

    SMARTPOLITICS

    ,IKETHESMALLER

    COMMUNITIESTHESEANDOTHER

    MAJORMETROPOLITANAREAS

    WILLUSETHEIRNETWORKSFOR

    SUCHCONSTITUENTFRIENDLY

    APPLICATIONSAS

    -UNICIPALAPPLICATIONS

    SUCHASPUBLICSAFETYEXAMPLE

    #ORPUS#HRISTILAUNCHESITS

    NETWORKWHICHINITIALLY

    WASCENTEREDONAUTOMATED

    WIRELESSMETERREADINGIN

    /CTOBER

    0UBLICACCESSINCLUDINGON

    PUBLICTRANSPORT$IGITALINCLUSIONPROGRAMS

    %DUCATION

    #OMMUNITIESARELOOKING

    TOMUNICIPALWIRELESSTO

    CREATEAMORECOMPETITIVE

    BROADBANDMARKETANDTO

    LOWERACCESSPRICES

    )NBOTHLARGEANDSMALL

    COMMUNITIESLOCALOFCIALS

    RESIDENTSANDBUSINESSESARE

    CONVINCEDTHATBROADBAND

    COULDBECHEAPERANDMOREWIDELYAVAILABLEANDTHATTHE

    ABSENCEOFROBUSTCOMPETITION

    ISKEEPINGPRICESHIGH

    4HEDISSATISFACTIONWITHTHE

    STATEOFBROADBANDINTHE53IS

    BORNEOUTINAREPORTPUBLISHED

    IN3EPTEMBERBY&REE

    0RESSENTITLED"ROADBAND

    2EALITY#HECK))4HE4RUTH

    "EHIND!MERICAS$IGITAL

    $ECLINEBY$EREK4URNER

    4HEREPORTSGOALISTOCOUNTER

    THEROSYPICTUREOF!MERICAN

    BROADBANDTHATTHE&EDERAL

    #OMMUNICATIONS#OMMISSION

    PAINTS4HEREPORTREVEALSTHAT

    4HE5NITED3TATES

    ISTHINTHEWORLDIN

    BROADBANDPENETRATIONAND

    OTHERNATIONSWITHINTHE

    /RGANIZATION&OR%CONOMIC

    #OOPERATIONAND$EVELOPMENT

    /%#$SAWHIGHEROVERALLNETGROWTHINBROADBANDADOPTION

    THANTHE53FROMTO

    #ONSUMERSINOTHER

    COUNTRIESHAVEBROADBAND

    CONNECTIONSTHATAREFARFASTER

    ANDCHEAPERTHANWHATIS

    AVAILABLEINTHE53YET53

    CONSUMERSPAYNEARLYTWICE

    ASMUCHASTHE*APANESEFOR

    CONNECTIONSTHATARETIMES

    ASSLOW

    %XECUTIVE3UMMARY

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    $ESPITEMOREEXTENSIVE

    USAGEPRICESOF53BROADBANDSERVICESARENTDROPPING#ABLE

    MODEMPRICESAREHOLDING

    CONSTANTORRISINGAND$3,

    CUSTOMERSONAVERAGEARE

    GETTINGLESSBANDWIDTHPER

    DOLLARTHANJUSTAYEARAGO

    $ESPITECLAIMSOFERCE

    COMPETITIONCABLEAND$3,

    ACCOUNTFORPERCENTOFTHE

    RESIDENTIALBROADBANDMARKET

    !NDOVERPERCENTOF53

    :)0CODESHAVEONEORFEWER

    $3,ORCABLEMODEMPROVIDERS

    SERVICINGTHOSECOMMUNITIES

    4HEMOSTIMPORTANT

    FACTORSEXPLAININGTHEDIGITAL

    DIVIDEAMONGNATIONSARE

    HOUSEHOLDINCOMEANDPOVERTY

    NOTPOPULATIONDENSITY

    4HOSELIVINGINURBANAREASARENEARLYTWICEASLIKELYTO

    HAVEHOMEBROADBANDACCESS

    ASTHEIRRURALCOUNTERPARTS!PPROXIMATELYONEOUTOF

    HOUSEHOLDSWITHINCOMES

    BELOWREPORTEDHAVING

    HIGHSPEED)NTERNETACCESSBUT

    SIXOUTOFEVERYHOUSEHOLDS

    WITHINCOMESABOVE

    HADBROADBAND

    4HEPRICEOFBROADBAND

    SERVICEANDNOTNECESSARILY

    THELACKOFAHOMECOMPUTER

    ISTHEKEYBARRIERTOBROADBAND

    ADOPTIONBYLOWINCOME

    HOUSEHOLDS4HE#USESMISLEADING

    ANDMEANINGLESSMEASURES

    OFBROADBANDCOVERAGE

    ANDCOMPETITIONINATING

    ESTIMATESOFBROADBAND

    AVAILABILITYANDCOMPETITION

    .EWPLAYERSWITHDEEP

    POCKETSAREENTERINGTHE

    MUNICIPALWIRELESSMARKET

    HELPINGTODRIVETECHNOLOGY

    ADVANCESGIVEMUNICIPALITIES

    MOREOPTIONSFORDEPLOYMENT

    ANDSERVICESANDRAISING

    AWARENESSOFTHETECHNOLOGY

    ANDWHATITCANDOFOR

    COMMUNITIES

    4HEUPTICKOFMARKETENTRIES

    AMONGINCUMBENTTELECOM

    OPERATORSCABLECOMPANIES

    PUBLICUTILITIESANDLARGE

    SYSTEMSINTEGRATORSALSO

    ACCOUNTSFORMORESPENDINGINTHISMARKET#OMPANIESSUCH

    AS%MBARQA3PRINTSPINOFF

    AND!44AREBIDDINGON

    MUNICIPAL7I&IPROJECTSAND

    SYSTEMSINTEGRATORSLIKE)"-

    AREDEVOTINGMORERESOURCESTO

    MAKINGTHESENETWORKSVIABLE

    4(%.%84&%79%!23

    )-0/24!.442%.$3)NLASTYEARSREPORTWE

    HIGHLIGHTEDSEVERALTRENDS

    ANDWEBELIEVETHATTHESEWILL

    CONTINUE-ETROPOLITANAREAS

    DEPLOYINGCITYWIDENETWORKS

    COUNTYWIDEBROADBAND

    PUBLICUTILITIESENTERINGTHE

    MARKETEG4ORONTO(YDRO

    THEPOPULARITYOFPUBLIC

    PRIVATEPARTNERSHIPSUSEOF

    MUNICIPALNETWORKSTOMAKE

    GOVERNMENTSERVICESMORE

    EFCIENTTHERISEOFSOCIAL

    NETWORKINGAPPLICATIONSAND

    LOCATIONBASEDSERVICESAND

    FREE)NTERNETACCESSSUPPORTED

    BYADVERTISING

    (EREAREMORETRENDSWECAN

    EXPECTONTHECOMINGYEAR

    $EVICEMANUFACTURERS

    SUCHAS.OKIAAND-OTOROLA

    WILLLAUNCH7I&IENABLEDMOBILEPHONESANDPORTABLE

    DEVICESTABLETSTOTAKE

    ADVANTAGEOFTHEUBIQUITYOF

    WIRELESSBROADBAND

    !PPLICATIONSFOR

    CONSUMERANDGOVERNMENT

    MARKETSWILLBEGINTOSEE

    INCREASEDDEMANDASMORE

    PEOPLEBUY7I&IENABLED

    PORTABLEDEVICESANDMORE

    CITIESANDCOUNTIESOFFER

    WIRELESSBROADBANDSERVICE

    EVERYWHERE7I&IWILLCONTINUE TO

    BETHEWIRELESSTECHNOLOGY

    OFCHOICEDESPITETHEHYPE

    SURROUNDING7I-AX

    4HEPRICETHATWIRELESS

    )30SCHARGETHEIRCUSTOMERS

    INTHE53WILLNOTDROP

    SIGNICANTLYWITHOUTA

    DECREASEINTHEWHOLESALEPRICE

    OFBANDWIDTH!MERICANSPAY

    MUCHMOREFORBANDWIDTH

    THAN*APANESE+OREANAND

    %UROPEANCUSTOMERS

    %XECUTIVE3UMMARY

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    -ARKET&ORECASTS

    -!2+%43):).'!.$

    '2/74(02/*%#4)/.3)NLASTYEARSINAUGURAL

    3TATEOFTHE-ARKET2EPORT

    WEWROTETHATOURRSTEVER

    SIZINGANDFORECASTFORTHE53

    MUNICIPALWIRELESSMARKET

    MADEITEVIDENTTHATALLTHE

    BUZZANDEXCITEMENTAROUND

    THEMARKETWASNTJUSTHYPE

    THEREWASSUBSTANTIALMONEY

    ALREADYBEINGSPENTANDALOT

    MOREWOULDBESPENTINTHE

    NEARFUTURE7EPEGGEDTHE

    MARKETATMILLION

    ANDPREDICTEDTHATTHEMARKET

    WOULDEVENTUALLYECLIPSE

    MILLIONBY

    7ELLWEMISSEDTHEMARK

    BYABIT4HEMARKETIN

    WASBIGGERTHANWETHOUGHTIT

    WOULDBEANDITSGOINGTOBE

    EVENLARGERTHANWEORIGINALLYTHOUGHTOVERTHENEXTSEVERAL

    YEARSTOO

    !CTUALLYOURFORECASTSLAST

    YEARREALLYWERENTOFFTHAT

    MUCHWEDISCUSSEDAVARIETYOF

    FACTORSTHATCOULDACCELERATETHE

    MARKETSGROWTHBYASMUCH

    ASPERCENT-ANYOFTHOSE

    FACTORSTHEUSEOF7I&IASA

    CITYAMENITYFORVISITORSAND

    POTENTIALRESIDENTSEMPLOYERS

    THEENTRYOFLARGESYSTEMS

    INTEGRATORSINTOTHEMARKETAND

    INCREASINGCOMPETITIONAMONG

    EQUIPMENTPROVIDERSMAKING

    NETWORKSLESSEXPENSIVETO

    PURCHASEANDDEPLOYHAVE

    ALREADYCOMETOPASS

    !-5#(,!2'%2-!2+%44HERESULTISTHATTHISYEARS

    REPORTINDICATESTHEMARKET

    ISBIGGERTHANWEEXPECTED

    AYEARAGO!NDEVENMORE

    SIGNICANTISTHEFACTTHATTHE

    HEADYYEARTOYEARGROWTH

    RATESNORMALLYEXPERIENCEDBYALLEARLYSTAGETECHNOLOGY

    MARKETSWILLLIKELYCONTINUE

    THROUGHTHEREMAINDEROFTHE

    CURRENTDECADE

    /URLATESTMARKETSIZING

    EFFORTINDICATESTHAT

    MILLIONWASSPENTON53

    MUNICIPALWIRELESSNETWORK

    INITIATIVESINCOMPARED

    TOOURORIGINALESTIMATEOF

    MILLIONAYEARAGO

    !LLOURESTIMATESINCLUDE

    MONIESSPENTEITHERBYTHE

    MUNICIPALITIESTHEMSELVES

    ORBYTHIRDPARTIESSERVICE

    PROVIDERSINTEGRATORSOR

    NOTFORPROTCORPORATIONSON

    BEHALFOFTHEMUNICIPALITIES

    )NWEBELIEVETHE

    MARKETWILLGROWBY

    PERCENTFROMTHEPREVIOUS

    YEARTOMILLIONWITH

    THEMARKETREACHING

    MILLION!GAINTHESE

    ESTIMATESARESIGNICANTLY

    HIGHERTHANOURESTIMATES

    MADELASTYEAR7EDORIGINALLYPREDICTEDTHAT

    SPENDINGWOULDBE

    MILLIONGROWINGTO

    MILLION

    %ARLIERINTHISREPORTWE

    DISCUSSANUMBEROFREASONS

    FORTHISHIGHERTHANEXPECTED

    GROWTHPRIMARILYFOCUSED

    UPONTHEFASTERTHANEXPECTED

    DEVELOPMENTOFMUNICIPAL

    WIRELESSSTRATEGIESBYALLTYPES

    OF53MUNICIPALITIESBUT

    ESPECIALLYBYLARGERCITIESAND

    COUNTIES"UTOURLATESTDATA

    INDICATETHEREARENUMEROUS

    ADDITIONALMARKETDRIVERS

    INCLUDINGPROMISINGINITIAL

    DEPLOYMENTSTHATALREADY

    AREBEINGEXPANDEDTOLARGER

    GEOGRAPHIESWITHINTHE

    MUNICIPALITIESANDADDITION

    OFNEWOFTENMOREAMBITIOUS

    APPLICATIONS

    4HESEANDOTHERFACTORSNOW

    ALLOWUSTOHAVEMUCHGREATER

    VISIBILITYINTOTHEMARKETS

    GROWTHOVERTHEREMAINDEROFTHEDECADEFORTHERSTTIME)N

    LASTYEARSREPORTWELIMITED

    OURFORECASTSFORTHEMARKETS

    DEVELOPMENTTOBECAUSE

    OFSTILLUNCERTAINISSUES

    REGARDINGTHETECHNOLOGY

    FUNDINGMODELSANDEARLY

    SUCCESSRATES(OWEVERWE

    NOWFEELMUCHMORECONDENT

    ABOUTTHOSEFACTORSANDASA

    RESULTWERENOWPROJECTING

    2004-2009 U.S. Spending for Municipal Wireless Networks2004 2005 2006 2007 2008 2009

    Spending ($millions) $47.4 $116.9 $235.5 $459.6 $941.0 $1,757.5

    YTY Growth Rate N/A 147% 102% 95% 105% 87%

    Source: 2006 Municipal Wireless State of the Market Report (Muniwireless.com)

    A Big Market . . . and Getting Bigger

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    SUSTAINEDMARKETGROWTH

    OUTTO7ESEETHEMARKETGROWINGTO

    MILLIONAPERCENTGROWTH

    RATEFROMWITH

    EXPENDITURESGROWINGBY

    ANOTHERPERCENTTO

    BILLION

    .OTE/URESTIMATES

    INCLUDESPENDINGONHARDWARE

    ANDPACKAGEDSOFTWARE

    SERVICESSUCHASAPPLICATIONS

    DEVELOPMENTCONSULTING

    TRAININGANDINTEGRATIONAND

    POSTDEPLOYMENTACTIVITIES

    SUCHASMAINTENANCEAND

    SUPPORT)NTERNALSTAFFCOSTS

    ARENOTINCLUDEDINTHESE

    EXPENDITUREESTIMATES

    ,!2'%#)4)%3!.$#/5.4)%3

    0)#+5034%!-!SWEMENTIONEDEARLIERAN

    IMPORTANTTRENDWEPREDICTED

    AYEARAGOWASTHEACCELERATEDADOPTIONRATESBYLARGER

    CITIESANDCOUNTIES,ASTYEAR

    0HILADELPHIASTOODALONEASTHE

    ONLYMAJOR53CITYTHATHAD

    DONESUBSTANTIALWORKTOWARD

    IMPLEMENTINGACITYWIDE

    7I&INETWORKOTHERSLIKE3AN

    &RANCISCOHADMADEPROGRESS

    BUTHADYETTOSELECTANAL

    SUPPLIERANDMOVETOWARD

    INITIALIMPLEMENTATIONS

    4HATCHANGEDSIGNICANTLYIN

    ASLEADINGCITIESSUCHAS!TLANTA#HICAGO,OS!NGELES

    AND(OUSTONHAVEISSUED

    2&0SFORAMBITIOUSWIRELESS

    PROGRAMSWHILEOTHERSSUCHAS

    "OSTON0HOENIX.EW9ORKAND

    !USTINHAVEMOVEDFORWARD

    THEIROWNSTILLDEVELOPING

    PLANS!LTHOUGHEACHCITYS

    BUSINESSMODELANDFUNDING

    STRATEGYDIFFERSEACHHAS

    MADEHIGHVISIBILITYPUBLIC

    PRONOUNCEMENTSABOUTTHE

    VITALNATUREOFMUNICIPAL

    7I&IINTHEIRCOMMUNITYAND

    APPEARSCOMMITTEDTODRIVING

    THOSEINITIATIVESTOWARDSOME

    LEVELOFOPERATIONIN

    4HISEMBRACEOFMUNICIPAL

    WIRELESSBYLARGECITIESISBEINGMATCHEDBYCOUNTIES

    ANDOTHERREGIONALMUNICIPAL

    COLLABORATIONSTHROUGHOUTTHE

    COUNTRY)NITIALLYLIMITEDTO

    RURALAREASSUCHAS3ANDOVAL

    #OUNTY.EW-EXICO

    5MATILLA#OUNTY/REAND

    7ASHTENAW#OUNTY7ASH

    SEVERALCOUNTYWIDE7I&I

    PROGRAMSHAVEEMERGEDFOR

    BOTHSTREAMLINEDMUNICIPAL

    OPERATIONSANDTOUNWIRE

    THELASTMILETOLOCALHOMES

    ANDBUSINESS

    .OWEVENLARGEMORE

    POPULOUSCOUNTIESARE

    GETTINGINONTHEACT/AKLAND

    #OUNTY-ICHHASBEENAN

    AGGRESSIVESUPPORTEROFEFFORTSTOBRINGTOGETHERMULTIPLE

    MUNICIPALITIESOUTSIDEOF

    $ETROIT%ARLYIN3UFFOLK

    AND.ASSAU#OUNTIESIN.EW

    9ORKANNOUNCEDTHEYWERE

    TEAMINGUPFORANAMBITIOUS

    BICOUNTYPLANTHATCOULD

    SPANSQUAREMILESAND

    SERVEMORETHANMILLION

    PEOPLEAFORMAL2&)WAS

    ISSUEDIN!UGUSTWITH

    ANEYETOWARDAPOTENTIAL

    DEPLOYMENT!NDTHREELARGE

    COUNTIESINSOUTHERN.EW

    *ERSEYRECENTLYENTEREDTHE

    MIXBYINDICATINGANINTEREST

    TOBRINGMUNICIPALWIRELESSTO

    -ARKET&ORECASTS

    Counties20%

    Counties

    29%

    Large Cities

    33% Large Cities

    40%

    Medium

    Cities

    16%

    Medium

    Cities

    19%

    Small Cities

    31%

    Small

    Cities12%

    Municipal Wireless Spending By Municipality Type

    2004 vs. 2009

    2004 2009

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    DOZENSOFLOCALCOMMUNITIES

    WITHINTHOSETHREECOUNTIES/FCOURSEPERHAPSTHEMOST

    CLOSELYWATCHEDREGIONAL

    MUNICIPAL7I&IINITIATIVEIS

    THE3MART6ALLEYPROJECTIN

    3ILICON6ALLEYENCOMPASSING

    THREECOUNTIESANDNEARLY

    INDIVIDUALCITIES7ITHTHE

    HIGHPROLE3AN&RANCISCO

    PROJECTTOITSNORTHAND

    WITH'OOGLESINNOVATIVE

    DEPLOYMENTINITSHOMETOWN

    OF-OUNTAIN6IEW#ALIF

    HELPINGTORAISEAWARENESS

    FORMUNICIPAL7I&ITHE3MART

    6ALLEYPROJECTHASBECOMEAN

    ICONFORWHATCOULDBEPOSSIBLE

    WHENADJOININGMUNICIPALITIES

    POOLTHEIRSTRATEGICTECHNICAL

    ANDNANCIALRESOURCES3MART

    6ALLEYIN3EPTEMBERSELECTEDA

    CONSORTIUMCONSISTINGOF#ISCO

    )"-3EAKAYAND!ZULSTARTO

    BUILDDEPLOYANDRUNTHEIRNETWORKINHOPESOFBRINGING

    THEIRNETWORKLIVEIN

    )NDEEDWESAWTWO

    SIGNICANTMETROWIDE

    MUNICIPALWIRELESS

    ANNOUNCEMENTS4HECITIES

    INTHEGREATER3ACRAMENTO

    AREAARELOOKINGTOFOLLOWTHE

    7IRELESS3ILICON6ALLEYMODEL

    AND#OLORADOCITIESARE

    PLANNINGTOISSUEAN2&0FOR

    ALARGEWIRELESSBROADBAND

    NETWORK4HESTATEOF2HODE)SLANDMEANWHILEISROLLING

    OUTASTATEWIDE7I&IAND

    7I-!8NETWORK

    !SARESULTOVERALLSPENDING

    ONMUNICIPALWIRELESSWILL

    INCREASESIGNICANTLYIN

    ANDBEYONDASTHEOVERALL

    PERCENTAGEOFTHATSPENDING

    SHIFTSDRAMATICALLYFROM

    SMALLERMUNICIPALITIESTOLARGER

    ONESCITIESWITHMORETHAN

    POPULATIONASWELLAS

    COUNTIES7EPROJECTTHATLARGE

    CITIESSHAREOFOVERALLSPENDING

    WILLRISEFROMPERCENTIN

    TOPERCENTIN

    WHILECOUNTIESPORTIONWILL

    INCREASEFROMPERCENTTO

    PERCENTDURINGTHATSAMETIME

    4/0!00,)#!4)/.30UBLICSAFETYCONTINUESTOBE

    THENUMBERONEAPPLICATIONDEPLOYEDONNETWORKSTHAT

    AREBOTHOPERATIONALTODAY

    ANDTHOSEEXPECTEDTOGO

    LIVEINTHENEXTMONTHS

    3IXTYVEPERCENTOFTHOSE

    MUNICIPALITIESINDICATETHAT

    THEYHAVEORWILLHAVEAPUBLIC

    SAFETYAPPLICATIONONTHEIR7I&I

    NETWORKTHISISANOTHERCASE

    OFTHEINUENCEOFCOUNTYWIDE

    INITIATIVESONTHEOVERALL

    MARKETSINCEMOSTCOUNTIES

    AREUSINGORPLANTOUSETHEIRNETWORKSASARESOURCEFOR

    SMALLCOMMUNITIESTOLEVERAGE

    FORPOLICEREANDEMERGENCY

    SERVICES4HATGUREISHIGHER

    THANWEREPORTEDINLASTYEARS

    REPORTWHENPERCENTOF

    THEOPERATIONALORPLANNEDNETWORKSWERESUPPORTING

    PUBLICSAFETYAPPLICATIONS

    )NFACTPUBLICSAFETYIS

    THETOPAPPLICATIONFORALL

    MUNICIPALITIESFROMSMALLAND

    -ARKET&ORECASTS

    Public safety

    65%

    51%

    49%

    40%

    36%

    34%

    30%

    27%

    Building inspection

    Public works

    Asset tracking

    Education

    Utilities

    Parking/traffic

    SCADA

    Top Municipal Applications

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    MEDIUMCITIESTOTHELARGEST

    CITIESANDCOUNTIESTHREEQUARTERSOFALLCOUNTIESSAY

    THEYREUSINGORPLANTOUSE

    THEIRMUNICIPALNETWORKSFOR

    PUBLICSAFETYAPPLICATIONS

    4HENEXTMOSTFREQUENTLY

    MENTIONEDAPPLICATIONSARE

    BUILDINGINSPECTIONAND

    PUBLICWORKSWITHAND

    PERCENTRESPECTIVELY!SSET

    TRACKINGALSOHASCOMEON

    STRONGINTHEPASTYEARWITH

    ANESTIMATEDPERCENTOF

    CITYWIDEANDCOUNTYWIDE

    NETWORKSBEINGUSEDFOR

    EVERYTHINGFROMLOCATION

    SERVICES'03ANDOR2&)$

    4HEDATAALSOSUGGEST

    ANOTHERPOTENTIALFACTOR

    DRIVINGTHEGREATERTHAN

    ANTICIPATEDMARKETGROWTH

    !NINCREASEINTHENUMBEROF

    APPLICATIONSRUNNINGONTHOSE

    NETWORKS7HENMOSTOFTHEEARLIESTMUNICIPALNETWORKS

    WERELAUNCHEDINTHEPAST

    FEWYEARSITWASTYPICALTHAT

    ASINGLEPOINTAPPLICATION

    WASDEPLOYEDASATESTBED

    "UTASMANYOFTHEINITIAL

    NETWORKROLLOUTSHAVEENJOYED

    SUCCESSMUNICIPALITIESHAVE

    QUICKLYMOVEDTOEXPANDTHEIR

    NETWORKSUTILITYBYLAYERING

    ONADDITIONALAPPLICATIONS/N

    AVERAGEMUNICIPALWIRELESS

    NETWORKSARESUPPORTINGAPPLICATIONSSIMULTANEOUSLY

    WITHLARGECITIESBEINGTHE

    MOSTAMBITIOUSWITH

    APPLICATIONS

    !SLARGESYSTEMSINTEGRATORS

    SUCHAS)"-AND.ORTHROP

    'RUMMANDEVOTEMORE

    RESOURCESTOTHISMARKETWE

    EXPECTCITIESANDCOUNTIESTO

    UTILIZETHEIRNETWORKSEVEN

    MOREINTENSELYFORMUNICIPAL

    APPLICATIONS.ORTHROP

    'RUMMANISTHESYSTEMS

    INTEGRATORFOR#ORPUS#HRISTI

    4EXASTHERSTMAJORCITYINTHE

    53TODEPLOYACITYWIDE7I&I

    NETWORKCOMBININGWIRELESS

    AUTOMATEDMETERREADING

    PUBLICSAFETYANDPUBLICACCESS

    #ORPUS#HRISTIISSAIDTOBE

    SPENDINGABOUTMILLIONIN

    ROLLINGOUTANDDEPLOYINGITS

    NETWORK.ORTHROP'RUMMANALSOWONAMILLION

    CONTRACTTODEPLOYACITYWIDE

    WIRELESSBROADBANDNETWORK

    FOR.EW9ORK#ITYHOWEVER

    THATNETWORKCURRENTLYISFOR

    PUBLICSAFETYUSEONLY

    &INALLYLARGEINCUMBENT

    SERVICEPROVIDERSLIKE!44

    ANDEVENPUBLICUTILITIES

    SUCHAS4ORONTO(YDROARE

    GETTINGINONTHEACTION4HE

    MARKETENTRYOFTHESEAND

    OTHERLARGEWELLRESOURCEDPROVIDERSWITHDEEPTECHNICAL

    EXPERTISEISEXPECTEDTOHELP

    BUILDCONDENCEAMONG

    MUNICIPALITIESTHATNUMEROUS

    RELIABLEOPTIONSEXISTWHENIT

    COMESTOSELECTINGSUPPLIERS

    ANDORPARTNERSINTHEIRPUBLIC

    WIRELESSINITIATIVES

    .%47/2+54),):!4)/.-UNICIPALNETWORKSALSO

    AREBEINGUTILIZEDINANUMBER

    OFDIFFERENTWAYSINORDER

    TOEXTENDTHEIRCAPABILITIES

    TOVARIOUSCONSTITUENTS

    BOTHINSIDEANDOUTSIDETHE

    MUNICIPALITIESTHEMSELVES

    &ORINSTANCESEVENIN

    NETWORKSAREBEINGUSED

    FORINTERNALORMUNICIPALAPPLICATIONSPRIMARILY

    DESIGNEDTOHELPFUNCTIONS

    SUCHASPUBLICSAFETY

    NANCEPERMITSINSPECTIONS

    TELECOMMUNICATIONSAND

    GENERALADMINISTRATIONOPERATE

    MORECOSTEFFECTIVELY"UTON

    AVERAGEGOVERNMENTSARE

    USINGTHEIRNETWORKSBETWEEN

    TWOANDTHREEDIFFERENTWAYSIN

    THEIRCOMMUNITIES

    &ORINSTANCENEARLYONEHALF

    PERCENTOFTHENETWORKS

    AREBEINGUSEDFREEBYRESIDENTS

    ANDORVISITORSWITHPERCENT

    BEINGACCESSFORAFEEBYLOCAL

    BUSINESSES!NOTHERPERCENT

    OFTHENETWORKSAREUSEDFORA

    -ARKET&ORECASTS

    Internal/Municipal

    Usage

    46%

    38%

    31%

    48%

    70%

    Free usage byresidents and

    visitors

    Paid accessby businesses

    Paid accessby residents/

    visitors

    Free usage bybusinesses

    Network Utilization

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    PERCENTAGEOFTOTALSPENDING

    DEVOTEDTOPRODUCTSHAS

    DROPPEDSOMEWHAT

    3LIGHTLYLESSTHANONEHALFOF

    ALLMUNIWIRELESSEXPENDITURES

    PERCENTCURRENTLYGO

    TOWARDPRODUCTSHARDWARE

    SUCHASMESHROUTERS7I&IEN

    ABLEDCLIENTDEVICESSERVERAND

    STORAGEUPGRADESETCASWELL

    ASPACKAGEDSOFTWAREWITHTHEMAJORITYNOWGOINGTOWARD

    VARIOUSSERVICES

    3INCEWEEXPECTTHE

    MUNICIPALWIRELESSMARKETTO

    DEVELOPINAPATTERNSIMILARTO

    OTHEREARLYSTAGEMARKETSWE

    BELIEVETHEMARKETWILLBEGIN

    MOVINGTOWARDEVENMORE

    FOCUSONSERVICESASTHEMAIN

    SOURCEOFEXPENDITURES.OT

    THATWEEXPECTLESSMONEYTO

    BESPENTONPRODUCTQUITE

    THEOPPOSITEINFACT7ITHTHEMARKETEXPECTEDTOCONTINUE

    GROWINGATDRAMATICRATESFOR

    THEREMAINDEROFTHEDECADE

    THEWIRELESSHARDWAREAND

    SOFTWAREMARKETWILLENJOY

    ROBUSTGROWTHDURINGTHATTIME

    "UTSPENDINGONSERVICES

    SUCHASAPPLICATIONSDEVELOP

    MENTTRAININGANDEDUCATION

    MAINTENANCEANDMANAGED

    SERVICESSUCHASBILLING

    NETWORKMONITORINGAND

    NETWORKMANAGEMENTSHOULD

    GROWEVENFASTER

    !SYOUDEXPECTSMALLERCOM

    MUNITIESSTILLTENDTOSPENDA

    LARGERPORTIONOFTHEIRPUBLIC

    7I&IBUDGETSONPRODUCTS

    SINCETHEIRINITIATIVESARESTILL

    LESSCOMPLEXANDREQUIRE

    FEWERVALUEADDEDSERVICES

    ATPRESENTCOMPAREDTOLARGE

    CITIESANDCOUNTIES/NAVERAGESMALLCITIESDEVOTEABOUT

    PERCENTOFTHEIRTOTALSPENDING

    ONPRODUCTSCOMPAREDTO

    PERCENTFORLARGECITIES

    )-0/24!.4

    -5.)#)0!,'/!,37HATARETHEKEYDRIVERSFOR

    MUNICIPALITIESTOADOPTAND

    INCREASINGLYEXPANDTHEIR

    CITYWIDEWIRELESSNETWORKS

    !SMUNICIPALWIRELESSGAINS

    MOREOFAFOOTHOLDINTHEMINDSANDBUDGETSOF

    COMMUNITIESALLACROSSTHE

    COUNTRYITSCLEARTHATTHEREARE

    ANUMBEROFMAJORGOALS

    .ECKANDNECKATTHETOPOF

    THELISTOFKEYGOALSAREENHANC

    INGPUBLICSAFETYSPURRING

    ECONOMICDEVELOPMENTAND

    PROVIDINGANOTHERCOSTEFFEC

    TIVE)NTERNETACCESSOPTIONFOR

    RESIDENTSANDBUSINESSES

    &OLLOWINGCLOSEBEHINDARE

    IMPROVINGMOBILEWORKER

    PRODUCTIVITYBRIDGINGTHE

    DIGITALDIVIDEANDREDUCING

    TELECOMMUNICATIONSCOSTS

    4HERELATIVESTRENGTHOFEACH

    OFTHESEISANIMPORTANT

    FACTORTOCONSIDER&IVEOFTHOSE

    FACTORSREGISTEREDMORETHAN

    PERCENTAMONGMUNICIPALITIESINDICATINGTHATCOMMUNITIES

    AREEXPECTINGTHEIRNETWORKS

    TOBEEXIBLEANDCOSTEFFECTIVE

    ENOUGHTOACCOMPLISHSEVERAL

    GOALSSIMULTANEOUSLY

    4HISISESPECIALLYTRUEINLARGE

    CITIESWHEREANAVERAGEOF

    GOALSWERECITEDASBEINGVERY

    IMPORTANTTOTHEDEPLOYMENT

    ANDOPERATIONOFTHEIRCITYWIDE

    NETWORK)NFACTLARGECITIESARE

    HIGHLYINSISTENTUPONTHEIRNET

    WORKSBEINGABLETOACCOMPLISH

    MANYGOALSSIMULTANEOUSLY&OUR

    DIFFERENTGOALSBRIDGINGTHE

    DIGITALDIVIDEPROVIDINGANOTHER

    )NTERNETOPTIONENABLINGMOBILE

    WORKERPRODUCTIVITYANDECO

    NOMICDEVELOPMENTRECEIVED

    -ARKET&ORECASTS

    ImprovePublicSafety

    62% 62%61% 58%

    53%

    46%

    EconomicDevelop-ment

    AnotherAccessOption

    MobileWorker

    Productivity

    BridgeDigitalDivide

    ReduceTelecomCosts

    Most Important Goals of Wireless Network Initiatives

    Pre-deploymentconsulting23%

    Products44%

    Post-deploymentservices13%

    Deployment20%

    2006 Spending byExpenditure Type

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    SCORESOFMORETHANPERCENTAS

    BEINGVERYIMPORTANT

    #(!,,%.'%34/

    $%0,/9-%.43.OONEEVERBELIEVEDTHIS

    WOULDBEEASYOFCOURSE!

    VARIETYOFHURDLESTECHNI

    CALNANCIALPOLITICALAND

    ORGANIZATIONALSTILLMUSTBE

    SURMOUNTEDBYMUNICIPALITIESANDTHEIRPARTNERSIFPUBLIC

    7I&INETWORKSARETOFULLL

    THEIRTRUEPOTENTIAL

    0ERFORMANCECONCERNS

    PERCENTANDTOPOGRAPHIC

    PROBLEMSPERCENTHEAD

    THELISTOFBIGGESTCHALLENGESTO

    SUCCESSFULMUNICIPALWIRELESS

    DEPLOYMENTSFOLLOWEDBY

    UNCLEAR2/)SCENARIOSPOLITICAL

    CHALLENGESBYINCUMBENTSAND

    SECURITYCONCERNS

    !GAINTHEREAPPEARS

    TOBEANOTICEABLESCHISM

    BETWEENTHEWAYSMALLERAND

    LARGERMUNICIPALITIESLOOKAT

    CHALLENGES,ARGERCITIESAND

    COUNTIESARECONCERNEDPRIMAR

    ILYWITHPOLITICALCHALLENGESBY

    INCUMBENTSANDUNCLEAR2/)

    SCENARIOSMOSTLIKELYOWING

    TOTHELARGEPOTENTIALNANCIAL

    IMPACTONINCUMBENTSERVICE

    PROVIDERSANDTHEPRESSURETHOSECOMPANIESAREBRINGING

    TOBEARUPONELECTEDOFCIALS

    INCUMBENTSPOLITICALCHAL

    LENGESISASIGNICANTCHALLENGE

    FORPERCENTOFLARGECITIES

    SURVEYEDCOMPAREDWITHJUST

    PERCENTOFSMALLCITIES

    "UTSMALLERANDMIDSIZED

    COMMUNITIESAREFARMORE

    CONCERNEDABOUTNUTSAND

    BOLTSISSUESRELATEDTOTHE

    NETWORKSOPERATIONSUCH

    ASPERFORMANCECONCERNS

    TOPOGRAPHICPROBLEMSAND

    SECURITYCONCERNS

    .%47/2+/7.%23()0!.$

    /0%2!4)/./NEOFTHEHOTTESTTOPICSOF

    DISCUSSIONINTHEMUNICIPAL

    WIRELESSMARKETPLACEISTHE

    QUESTIONOFWHETHERTHOSE

    NETWORKSSHOULDBEOWNEDAND

    OPERATEDBYTHEMUNICIPALITY

    ITSELFORBYATHIRDPARTY2ECENTLYMANYLARGECITIES

    SUCHAS"OSTONAND#HICAGO

    NOWCONSIDERINGPUBLIC7I&I

    HAVEINDICATEDTHATTHEYWOULD

    PREFERTHIRDPARTIESOWNAND

    OPERATETHENETWORKSINORDER

    TOAVOIDHAVINGTOSPENDPUBLIC

    FUNDSINBUILDINGOUTTHE

    WIRELESSINFRASTRUCTURE

    /URDATASHOWSIGNICANT

    MOVEMENTINTHEDIRECTION

    OFTHIRDPARTYOWNERSHIPAND

    OPERATIONAGAINESPECIALLY

    WITHLARGERCITIESAND

    COUNTIES-OSTPERCENT

    OFTHESEMUNICIPALITIESHAVE

    MOVEDOREXPECTTOMOVE

    TOWARDATHIRDPARTYMODEL

    ALTHOUGHTHERESTILLREMAINSA

    SIGNICANTNUMBEROFSMALLER

    MUNICIPALITIESTHATBOTHOWN

    ANDOPERATETHEIRWIRELESS

    NETWORKS

    -ARKET&ORECASTS

    Performance concerns

    Political challenges by incumbents

    Security concerns

    Disagreements on mounting rights

    Lack of intenal technical resources

    Lack of clear goals

    Unclear ROI scenarios

    Topographic problems

    43%

    42%

    35%

    35%

    32%

    26%

    17%

    36%

    Challenges to Deployments

    Network Management Strategy

    MunicipalityOwns and Operates

    Municipality Owns,Does Not Operate

    Third Party Owns andOperates

    Unsure/NotDetermined

    Total 24% 15% 38% 23%

    Large cities 12% 8% 56% 24%

    Medium cities 32% 13% 42% 27%

    Small cities 29% 19% 26% 26%

    Counties 2% 13% 56% 29%

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    )NTHESENTERPRISE#)/S

    WEREINVESTINGINANDADOPTING

    TECHNOLOGYATAFRANTICPACE

    "YTHEMIDDLEOFTHEDECADE

    THESE#)/SANDTHEIR#&/S

    AND#%/SWERECHALLENGED

    WITHDEMONSTRATINGTHEREAL

    STRATEGICECONOMICOPERATIONAL

    ANDOTHERVALUETHESEINVEST

    MENTSWEREDELIVERINGFORTHE

    ORGANIZATION

    /VERTIMEUSEFULFRAMEWORKSANDBESTPRACTICESEMERGED

    'ARTNER'ROUPINTRODUCEDTHEIR

    4OTAL#OSTOF/WNERSHIP4#/

    MODEL'IGA'ROUPCOUNTERED

    LATERWITHTHEIR4OTAL%CONOMIC

    )MPACT4%)MODELANDOTHERS

    FOLLOWED7HILEEACHOFTHESE

    FRAMEWORKSWASCRITICIZED

    OVERTIMEFROMMANYANGLES

    THEYPROGRESSEDTOWARDS

    MOREDILIGENTANDCONSISTENT)4GOVERNANCEWITHINTHE

    ENTERPRISE4HEYALSOPROVIDED

    USEFULBENCHMARKSFORHOW

    WELLORGANIZATIONSWEREUSING

    )4FORCOMPETITIVEADVANTAGE

    4ODAYPUBLICSECTOR#)/SFACE

    ASIMILARCHALLENGEASTHEYMAKE

    THETRANSITIONFROMGOVERNMENT

    TECHNOLOGYMANAGERSTO

    COMMUNITYTECHNOLOGYCZARS

    !STHEROLETECHNOLOGYPLAYS

    MATURESFROMGOVERNMENT

    OPERATIONSTOSOCIOECONOMIC

    ENABLERWEARESEEINGTHISTREND

    PLAYOUTONCEAGAIN

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    APPARENTTHANWITHTHE

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    INTERNALTOEXTERNALITDOES

    REPRESENTONEOFTHERSTEXPERIMENTSWHERETHISFOCUSIS

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    COMMERCIALSERVICESINTHIS

    CASEBROADBAND)TISCOMMON

    PLACEFORELECTEDLEADERSTHINK

    OFTHEMASTHE#%/SAND#&/S

    TOCONCEIVEAVISIONFORHOW

    MUNIWIRELESSCANPOSITIVELY

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    PLACEOWNERSHIPFORACHIEVING

    THISVISIONINTHEHANDSOFTHECITY#)/

    7ITHDOZENSOFMUNIWIRELESS

    PROJECTSMOVINGFROM

    FEASIBILITYANDPLANNINGTO

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    BESTPRACTICESTOSUPPORTA

    COMMUNITYVALUEFRAMEWORK

    ARENOWSTARTINGTOEMERGE

    4HIS4OTAL#OMMUNITY6ALUE

    4#6FRAMEWORKSHOULD

    0ROVIDETOOLSAND

    PROCESSESFORPUBLICSECTOR

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    !CCURATELYESTIMATETHE

    TANGIBLEUPFRONTANDONGOING

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    VALUECHAIN

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    ASSUMPTIONSANDESTIMATES

    FORINTANGIBLEVALUEEGRATE

    OFECONOMICGROWTHSOCIAL

    BENETS

    0ROVIDEABASISFORHOWCOMMUNITIESEVALUATEVENDOR

    ANDORPARTNERPROPOSALS

    DURINGTHE2&0PROCESS

    !LLOWINITIATIVESACROSS

    DIFFERENTCOMMUNITIESEACH

    WITHVARIEDGEOGRAPHIC

    SIZEPOPULATIONDENSITY

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    CHARACTERISTICSTOBE

    BENCHMARKEDAGAINSTOTHERS

    INAMEANINGFULWAY

    $ISCOUNTANYESTIMATED

    COMMUNITYVALUE BASEDON

    NANCIALSUSTAINABILITYAND

    OTHERRISKSTAKENPUBLIC

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    VSFREEPRICINGMODELS

    "EAPPLIEDTHROUGH

    CASESTUDYANALYSISTOSEVERAL

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    INITIATIVESTOPROVIDEA

    BASELINEFORFUTUREPROJECTS

    ,AYTHEGROUNDWORK

    FORCOMMUNITIESTOMEASURE

    ANDREPORTOVERTIMEON

    THEEFFECTIVENESSOFTHEIR

    INITIATIVE

    7HILETHEDEVELOPMENT

    OFA4#6MODELWITHTHESE

    CHARACTERISTICSWILLTAKE

    YEARSTODEVELOPVALIDATE

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    ALREADYBEINGSEWNBYMANYOFTHEPIONEERINGINITIATIVES

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    COMMUNITIESSHOULDBEGINTO

    APPLYTHESEBESTPRACTICESIN

    THEIROWNPROJECTSTOBETTER

    UNDERSTANDHOWTOMEASURE

    ANDDELIVERCOMMUNITYVALUE

    Greg Richardson is founder and

    managing partner of Civitium LLC,

    a leading to municipalities for publicWiFi initiatives.

    A New IT Value Framework For Municipalities

    "EST0RACTICES4HE#ONSULTANTS0OINTOF6IEW

    By Greg Richardson

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    "EST0RACTICES4HE#)/S0OINTOF6IEW

    TECHNOLOGIESMATCHINGTHE

    BESTTECHNOLOGYWITHTHE

    SPECICBUSINESSOBJECTIVEAND

    THEPOLITICALLANDSCAPE

    )NADDITIONTHECITYIS

    CONSIDERINGTHEIMPLICATIONS

    OFDEVELOPINGAPOLICYFOR

    MAKINGCITYRIGHTOFWAY

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    SECTORPROVIDERSINTERESTED

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    0HOENIX

    3HOULDAFFORDABILITY

    OFBROADBANDSERVICESBEAN

    OBJECTIVE

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    COVERAGEAREASTANDARDSAND

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    ARGUMENTSFOR7I&IAREREALLY

    ARGUMENTSFORBROADBAND4HESAMEISTRUEFORWIRELESS

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    FORYOU

    Kris Sigfridson is acting chief i nfor-

    mation officer for the city of Phoenix,

    Arizona.

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    "EST0RACTICES4HE3YSTEM)NTEGRATORS0OINTOF6IEW

    Making Wireless Systems Integration Integral7HENACITYEMBARKS

    ONAWIRELESSTECHNOLOGY

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    Jeffrey King is director of salesand marketing for NorthropGrummans Utilities, Commercial,State and Local Group, Information

    Technology Sector.

    By Jeffrey King

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    -UNICIPALBROADBAND

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    Sascha Meinrath is executivedirector of the Champaign-Urbana

    Wireless Network.

    "EST0RACTICES4HE#OMMUNITY!DVOCATES0OINTOF6IEW

    Think Locally, Act Locally

    By Sascha Meinrath

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    %COSYSTEM

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    HASTRADITIONALLYSUPPLIEDCAR

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    %COSYSTEM

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    FAVOREDBYMOSTCITIESEVEN

    THOUGHITHASABETTERCHANCE

    OFGUARANTEEINGOPENCAR

    RIERNEUTRALBROADBANDACCESS!LTHOUGHCITIESASSERTTHAT

    WIRELESSBROADBANDNETWORKS

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    ANDHIGHWAYSBYOWNING

    ANDFUNDINGTHENETWORKS

    DEVELOPMENT

    "ECAUSEMANYSMALLWIRELESS

    )30SARESTRAPPEDFORCASHAND

    AREUNABLETOMAKETHENECESSARYINVESTMENTSCITIESUSING

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    NDTHEMSELVESWITHANINSOL

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    !ZULSTARAND53)NTERNETAND

    FORCITIESTHATWANTRESOURCES

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    WORKSAREANEWPHENOMENONANDRETURNONINVESTMENT

    ISUNCERTAIN)NURBANAREAS

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    CUSTOMEDTOFREE7I&IINCAFES

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    ORATLEASTVERYCHEAP(OW

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    MENT5NLESSAN)30OBTAINS

    ENOUGHREVENUESTHROUGH

    ADVERTISINGONFREENETWORKS

    ORGETSANCHORTENANTSSUCH

    ASTHEMUNICIPALITYPUBLICSCHOOLSANDTRANSITAUTHORITY

    ASPROVIDEDIN0ORTLANDS

    2&0ANDTURNTHATINTOA

    SUSTAINABLEBUSINESSTHE

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    MAYNOTBEAGOLDMINEFORTHE

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    4(%7),$#!2$3

    A/PENSOURCESOFTWARE

    'IVENTHATTHE)%%%HASNOTYETAGREEDUPONASTANDARD

    FORMESHNETWORKSS

    TODAYSMESHSOLUTIONSARE

    OFTENPROPRIETARY7HAT

    HAPPENSIFAVENDORGOESOUT

    OFBUSINESS7HATCANBEDONE

    TOMAKEWIRELESSBROADBAND

    EVENTMOREAFFORDABLE

    !DVOCATESOFOPENSOURCE

    MESHSOLUTIONSAREPRESSING

    CITIESTOLOOKATOPENSOURCE

    ALTERNATIVES4HEMOSTWELL

    KNOWNOFTHESEISTHE#HAMPAIGN5RBANA#OMMUNITY

    7IRELESS.ETWORK#57).

    #57).www.cuwireless.net

    RECEIVEDAGRANTIN

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    3CIENCE&OUNDATIONTOPAYFOR

    THEDEVELOPMENTOFTHEOPEN

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    WILLBEIMPLEMENTEDINALARGENUMBEROFCITIESAND

    REGIONS3OFARTHEVENDORSOF

    PROPRIETARYEQUIPMENTHAVE

    BEENWINNINGCITYANDCOUNTY

    BIDS#57).NEEDSTOTESTITS

    SOFTWAREINMORELOCATIONS

    ANDUNDERMORECONDITIONS

    DENSEURBANENVIRONMENTS

    INORDERTOPROVEITSVALUE&OR

    THIS#57).WILLNEEDPARTNERS

    TOHELPCOVERTHECOSTOFTHEHARDWAREANDINSTALLITINA

    VARIETYOFLOCATIONS

    4HECOSTADVANTAGEOFOPEN

    SOURCEOPENARCHITECTURE

    SOLUTIONSISTOOSIGNICANTTO

    IGNOREANDMANYENTREPRE

    NEURSNOTJUSTTHOSEINTHE

    OPENSOURCECOMMUNITYARE

    BUSYDEVELOPINGCHEAPER

    EQUIPMENTANDSOFTWAREFOR

    WIDEAREANETWORKS

    B#ABLEOPERATORS

    #ABLEOPERATORSHAVEBEENWATCHINGTHEMUNICIPALWIRE

    LESSMARKETBUTHAVENOTWON

    ANYPROJECTSUNLIKE!44

    7EEXPECTCABLECOMPANIES

    TOOFFERWIRELESSBROADBAND

    SERVICETOGETHERWITHWIRE

    LESS6O)0ANDOTHERSERVICES

    BUNDLEDWITHCABLE46AND

    )NTERNETACCESS)NTHEPAST

    YEARTELECOMINCUMBENTS

    6ERIZONAND!44HAVEBEEN

    ROLLINGOUTBERINVARIOUSMUNICIPALITIESTOBRING)046

    SERVICE3TATEWIDEFRANCHISING

    LAWSTHATMAKEITEASIERFOR

    TELCOSTOOFFER46SERVICE

    BECAUSETHEYDONTNEEDTO

    NEGOTIATEWITHEACHMUNICI

    PALITYHAVEPASSEDINMANY

    STATES4HECABLEOPERATORSWILL

    NOLONGERHAVEAMONOPOLY

    ON46!SARESULTTHEYARE

    LOOKINGFORWAYSTOCOMPETEWITHTHETELECOMANDCELLULAR

    OPERATORSNOTJUSTON46

    SERVICEBUTALSOVOICEAND

    )NTERNETACCESS"ECAUSETHE

    CABLECOMPANIESHAVEEXIST

    INGCUSTOMERSANDAWIRED

    BACKHAULAVAILABLEFORWIRELESS

    BROADBANDSERVICETHEYCOULD

    COMPETEEFFECTIVELYWITH

    %ARTH,INK!44ANDREGIONAL

    )30SFORCUSTOMERS

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    6ENDOR,ISTINGS

    Wireless mesh equipment

    4ROPOS.ETWORKSwww.tropos.com

    "EL!IR.ETWORKS www.belairnetworks.com

    -OTOROLA-OTO-ESHwww.motorola.com

    .ORTEL.ETWORKSwww.nortelnetworks.com

    #ISCOwww.cisco.com

    &IRETIDEwww.firetide.com

    3TRIX3YSTEMS www.strixsystems.com

    0ACKET(OP www.packethop.com

    3KYPILOT www.skypilot.com

    3ENSORIAwww.sensoria.com

    2OAM!$www.roamad.com

    -ESH$YNAMICSwww.meshdynamics.com

    ,OCUSTWORLDwww.locustworld.com

    (OPLING www.hopling.nl

    4RANGOwww.trangobroadband.com

    Point to multipoint antennas

    and base stations

    !LVARION www.alvarion.com

    2EDLINE#OMMUNICATIONS

    www.redlinecommunications.com

    !PERTO.ETWORKS www.apertonet.com

    -OTOROLA#ANOPYwww.motorola.com

    4ERABEAM www.terabeam.com

    /RTHOGON3YSTEMSwww.orthogonsystems.com

    OSS, billing and roaming solutions

    0RONTO.ETWORKSwww.prontonetworks.com

    !IRPATH7IRELESSwww.airpath.com

    !PTILO.ETWORKS www.aptilo.com

    .ET.EAR5www.netnearu.com

    ,OGISENSEwww.logisense.com

    'O2EMOTEwww.goremote.com

    I0ASSwww.ipass.com

    Public access and roaming gateways

    .OMADIXwww.nomadix.com

    #OLUBRISwww.colubris.com

    "LUESOCKETwww.bluesocket.com

    )0.ETWORKSwww.ip3networks.com

    .ET'EARwww.netgear.com

    Residential gateways and

    wireless bridges

    2UCKUS7IRELESSwww.ruckuswireless.com

    -ERAKIwww.meraki.net

    0EPLINKwww.peplink.com

    Systems integrators, consultingfirms and wireless ISPs)"-www.ibm.com

    .ORTHROP'RUMMANwww.ngc.com

    (EWLETT0ACKARD www.hp.com

    ,UCENTwww.lucent.com

    "USINESS)NFORMATION'ROUPwww.4service.net

    0##.ETWORK3OLUTIONS www.pccinc.com

    3CIENTEL!MERICAwww.scientelamerica.com

    "URNS-C$ONNELL%NGINEERINGwww.burnsmcd.com

    2ACOMwww.racom.com

    #IVITIUM www.civitium.com

    -2)www.aboutmri.com

    $ANDIN'ROUPwww.dandin.com

    %ARTHLINKwww.earthlink.com

    537IRELESS/NLINEwww.uswirelessonline.com

    )#/! www.icoacorp.com

    -ETRO&Iwww.metrofi.com

    !ZULSTARwww.azulstar.com

    -OBILE0ROwww.mobilepro.com.!37IRELESSwww.naswireless.com

    6IASYSwww.viasyscorp.com

    7&)www.wfinet.com

    /.5'#OMMUNICATIONS www.onugsolutions.com

    %MBARQwww.embarq.com

    !44www.att.com

    &IREWIREwww.fire2wire.com

    ,EAPFROG4ECHNOLOGIES www.leapfrogtech.com

    SEAKAYwww.seakay.org

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    0REDICTIONS

    Looking Back, Looking Ahead'AZINGINTOAVIRTUALCRYSTAL

    BALLISALOTOFFUNBUTTAKING

    ALOOKBACKAYEARLATERAND

    ASSESSINGHOWACCURATELYYOUR

    PREDICTIONSACTUALLYPLAYED

    OUTISANOTHERMATTER3TILLWE

    THINKWENAILEDANUMBEROF

    LASTYEARSPREDICTIONSANDEVEN

    SOMETHATWEMIGHTNOTHAVE

    HITPERCENTONTHEMARKSTILL

    CAMEPRETTYCLOSE

    (ERESALOOKATHOWWEDIDONLASTYEARSPROGNOSTICATIONS

    ANDTHENWELLTAKEAFRESH

    LOOKATOURPREDICTIONSFORTHE

    COMINGMONTHS

    !,//+"!#+!4,!349%!2302%$)#4)/.3

    02%$)#4)/. $RAMATIC

    INCREASEININTERESTFROMLARGE

    CITIESWILLBETHEMARKETSTOPGROWTHENGINEINTHE

    COMINGYEAR

    4RUE,ARGEMETROAREAS

    SUCHAS!TLANTA#HICAGOAND

    (OUSTONISSUED2&0SINTHE

    PASTYEARTHEYDIDNOTWAITFOR

    0HILADELPHIAOR3AN&RANCISCO

    TOGOLIVE"OSTONISPREPARING

    AN2&0BASEDUPONTHE"OSTON

    7I&I4ASK&ORCESRECOMMENDA

    TIONS7IRELESS3ILICON6ALLEY

    THELOOSEAGGLOMERATIONOF

    COMMUNITIESINNORTHERN

    #ALIFORNIAHASCHOSENACONSOR

    TIUMCONSISTINGOF#ISCO)"-

    3EAKAYAND!ZULSTARTODEPLOY

    THENETWORK#OUNTYWIDE

    DEPLOYMENTSNOTJUSTINRURAL

    AREASHAVEALSOTAKENOFF

    4HEMOSTSIGNICANTSUBURBAN

    COUNTYBIDISSUEDTHISYEAR

    COMESFROM3UFFOLKAND.ASSAUCOUNTIESON,ONG)SLAND

    .EW9ORK7HENDEPLOYEDTHE

    3UFFOLK.ASSAUNETWORKWILL

    SERVECLOSETOMILLIONPEOPLE

    7EEXPECTTHISTRENDTO

    CONTINUETHROUGHNEXTYEAR

    02%$)#4)/.3MALLERAND

    MIDSIZEDCOMMUNITIESWITH

    FASTGROWINGPOPULATIONSWILL

    BEUNDERINCREASINGPRESSURETOUNWIREANDTHEYWILLRESPOND

    TOTHECHALLENGE

    4RUE4HETABLEABOVE

    TAKENFROMTHE3EPTEMBER

    UPDATEOFWIRELESSCITIESAND

    COUNTIESINTHE53SHOWSTHAT

    BETWEENANDTHE

    NUMBEROFPLANNEDDEPLOYMENTS

    IECITIESANDCOUNTIESTHAT

    HAVEISSUEDBIDSORARECURRENTLY

    DEPLOYINGNETWORKSMORETHANQUADRUPLEDFROMIN*ULY

    TOIN3EPTEMBER

    4HE3EPTEMBERUPDATE

    CANBEFOUNDAThttp://www

    .muniwireless.com/reports/docs/

    Sept-10-2006summary.pdf

    02%$)#4)/.$ESPITE

    OFTENTINYBUDGETSVERYSMALL

    MUNICIPALITIESINRURALAREAS

    WILLBEAMONGTHEMOSTAGGRESSIVEINMOVINGTOWIRELESS

    BROADBAND

    4RUE3EETHETABLEABOVEAND

    THELISTOFCOMMUNITIESMANY

    OFTHEMRURALINTHEREPORT

    WECITE"ECAUSETHELARGE

    INCUMBENTOPERATORSHAVENT

    MADERURALAREASAPRIORITY

    THESECOMMUNITIESWILLHAVE

    TOTAKEMATTERSINTOTHEIROWN

    HANDSANDDEPLOYTHEIROWNNETWORKS7EEXPECTTHISTREND

    TOCONTINUE

    02%$)#4)/.4HEAPPLICATION

    SOFTWAREMARKETWILLBETHE

    HOTTESTPRODUCTSEGMENTWITHIN

    MUNICIPALWIRELESS

    .OTYETTRUEBUTWEBELIEVE

    THISWILLHAPPENWITHINTHE

    NEXTMONTHS"ECAUSEMOSTCITIESANDCOUNTIESARESTILLIN

    THEDEPLOYMENTPHASEAND

    DEVICEMANUFACTURERSSUCH

    AS.OKIAAND-OTOROLAHAVE

    NOTYETRELEASED7I&IENABLED

    MOBILEPHONESTHATARE

    AFFORDABLETHEAPPLICATIONS

    MARKETHASNOTDEVELOPEDAS

    QUICKLYASWEPREDICTED!FEW

    SOCIALNETWORKINGAPPLICATIONS

    CONTINUETOGAINCUSTOMERS

    JULY2005

    FEB2006

    APR2006

    JUN2006

    SEPT2006

    Region/Citywide 38 56 58 59 68

    City hotzones 22 29 32 32 43

    Municipal or publicsafety use only 28 32 35 35 35

    Planneddeployments 34 59 69 121 135

    TOTAL 122 176 194 247 281

    By Esme Vos

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    EG-EETROBUTTHESERELYON

    EARLYADOPTERSMOSTLYWITHINTHETECHCOMMUNITYANDIN

    URBANAREAS4HEAPPLICATIONS

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    BEYONDWHATTHEYAREDOING

    TODAYONALAPTOP/NEOFTHEBIGGESTDRIVERSOFWIRELESS

    BROADBANDUSEWILLBE6OICE

    OVER7I&ITHEABILITYTOMAKE

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    WIDENETWORKFROMANYWHERE

    INTHECOMMUNITYANDTHIS

    YOUCANDOBESTONA7I&I

    ENABLEDMOBILEPHONE

    4HISTRENDWILLACCELERATE

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    0HILADELPHIA

    02%$)#4)/.4HEREWILLBEFU

    RIOUSLEGISLATIVEBATTLESWHICH

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    0ARTLYTRUE4HELEGISLATIVE

    BATTLESTHISYEARTOOKPLACE

    ATTHEFEDERALLEVELWITH

    COMPETINGBILLSFORANDAGAINST

    NETWORKNEUTRALITY!TTHESTATE

    LEVELMOSTANTIMUNICIPAL

    BROADBANDBILLSINTRODUCED

    BYINCUMBENTFRIENDLYSTATE

    SENATORSDIDNOTPASSIN

    !SARESULTINCUMBENTSSUCHAS!44HAVEADOPTEDTHEIF

    YOUCANTBEATTHEMJOINTHEM

    STRATEGYANDAREBIDDINGON

    PROJECTS!44ISUNWIRING

    3PRINGELD)LLINOISANDHAS

    JOINEDFORCESWITH-ETRO&I

    TOBIDONTHE2IVERSIDEAND

    3ACRAMENTO#ALIFORNIA2&0S

    4HELEGISLATIVEBATTLESARE

    NOTOVER)NDEEDTHEFAILURE

    OFTHE53GOVERNMENTTO

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    ROBUSTCOMPETITIVEMARKETFORBROADBANDONTHEWHOLESALE

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    BANDWIDTHWILLBECOME

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    STARTDEMANDINGCHEAPER

    ANDMOREBANDWIDTHONBOTH

    WIREDANDWIRELESSNETWORKS

    7ESHOULDNOTFORGETTHAT

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    BERTOCARRYTRAFC!SLONGASTHEINCUMBENTSCONTROLTHE

    BACKHAULANDKEEPTHEPRICEOF

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    SERVICEPROVIDERSWILLNOT

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    COSTSTOUSERSOFMUNICIPAL

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    ABLEDPORTABLEDEVICESTABLETSDUALMODEMOBILEPHONES

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    PRICESWILLDROP4HESEDEVICES

    WILLBEUSEDBYCONSUMERSAND

    GOVERNMENTMOBILEWORKERS4HEMOSTSIGNICANTBAR

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    NETWORKSBYABROADSPECTRUM

    OFTHEPUBLICISTHELACKOF

    INEXPENSIVEPORTABLEDEVICES)TSONETHINGTOBESITTINGINA

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    THINGTOHAVETOLUGITAROUND

    THECITY

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    DEVICESBYCOMPANIESTHAT

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    CAMERAS-0PLAYERSAND

    0REDICTIONS

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    GAMINGCONSOLESEG.OKIA

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    3ONYHASBEENSELLINGITS0LAY

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    TABLETWHICHRUNS,INUX

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    THEGOWOULDLIKETOUSEONA

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    HOTSPOT

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    THEMARKETFOR7I&IDEVICES

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    MUNICATIONSDEVICESTHATWILL

    ALLOWPEOPLETOUSEMUNICIPAL

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    4ODAYWHENYOUTAKEDIGITAL

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    0REDICTIONS

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    0REDICTIONS

    NETWORKSTILLRELIESONAWIRED

    BACKHAULEGBERORCOPPERTOCONNECTPEOPLETOTHE

    )NTERNET)TISATTHEBACKHAUL

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    TOOFFERLOWWHOLESALEPRICESTO

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    PRICEOFBANDWIDTHISHIGH

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    6ERIZONTOOPENTHEIRNETWORKS

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