Muni WiFi — let’s build a model
I just posted a story over at the St Paul Broadband Committee site about my belief that a lot of the municipal WiFi networks don't seem to be grounded in financial reality.
Here's a link to the article and here's a link to the muni-WiFi financial model I built to go with it.
Here's the deal -- let's get these models out of the hands of the VooDoo consulting expert type people and into the hands of the people. "Open source financial modeling" if you will. Let's beat on this model -- or write a new one if this one is hopeless -- and get to the point where we ALL understand the economics that underpin these projects.
That way, we can either rejoice in bridging the digital divide, solving the problems of the world and putting a chicken in every pot (as advocates claim) or we can avoid the mess that comes with yet another technology project that over-promises and under-delivers.
What say you? Let's have at it.
September 17th, 2006 at 12:48 pm
[...] One of the things that has me bugged is that these projects don’t look like they’ll ever make money. I went so far as to post a financial model out there on the ‘net. Let’s do a little open-source financial modeling here and get these numbers out into the light of day instead of in the heads of the Voodoo consultants who are making lots of money walking cities down the primrose path. [...]
November 13th, 2007 at 11:18 am
First, you have two conflicting ideas, "Municipal" and "financial reality". When government makes a bad mistake, they ask for more money. When a business does the same, they go out of business. Which model drives better resource utilization?
Mike's reply;
So far, there's one municipality that really seems to have their act together -- Burlington Network Services in Burlington, VT. I just met the guy that really got that project turned around. So I think there is hope, but it's tricky. And certainly most of the wireless models you've seen out there are proving themselves to be in a world of hurt.
January 2nd, 2008 at 12:52 pm
Mike,
The link you have above for your article takes me to some British travel bureau's web site. Would you please send me the corrent link.
I am also not able to find the url for "St. Paul Broadband Committee"..
Thanks,
Armando
Mike O'Connor says...
Argh... that's what comes of changing your primary domain name. Little straggling goof-ups.
They should all be fixed now. Sorry about that.
m
March 23rd, 2008 at 6:14 pm
thank you!
Mike says:
Sure thing. There's a good article in today's New York Times that sorta bears me out. The headline is "Hopes for Wireless Cities Fade as Internet Providers Pull Out" Click HERE to read the story. Nobody can make those numbers work, it seems.