CHICAGO, Sept. 4 /PRNewswire/ -- With multiple cities' plans for citywide Wi-Fi networks facing question marks this week, municipalities across the United States should recognize that the current municipal wireless business model -- with vendors footing a significant portion of the bill -- might not be viable.
Many municipalities have faced unanticipated barriers when it comes to developing comprehensive, lasting broadband access. A holistic approach that incorporates flexibility for expanding bandwidth requirements will be key in constructing enduring municipal broadband projects, according to Diamond Management & Technology Consultants, Inc. .
"Current wireless networks are being touted as a 'silver bullet' to provide citizens, local businesses, and government agencies with internet access," said Chris O'Brien, a partner in Diamond's Public Sector practice. "But it's risky to place large bets on a single technology or a monolithic solution. Furthermore, we are concerned that municipal wireless networks, as currently conceived, will not be able to meet the bandwidth demands of consumers over the next three to five years."
In a new report, "Municipal Broadband Strategy: Beyond Wireless," Diamond projects that within the next five years, capacity requirements will rise from their current level of 1 to 5 Mbps to more than 100 Mbps, according to the report. Cities that are crafting their broadband strategies completely or largely around Wi-Fi or Wi-Max networks will not be able contend with the exploding bandwidth requirements, but instead will be overwhelmed by an increasing need for capacity.
Diamond's O'Brien, previously chief information officer for the City of Chicago, points out that municipal leaders see a compelling need to act because of three very real conditions faced by U.S. cities:
-- First, the nation continues to experience a digital divide, where too
many individuals -- in rural and urban areas alike -- lack access to
even basic broadband networks.
-- Second, U.S. cities are fiercely competitive with one another as they
seek to attract companies and increase jobs, and the quality and
reliability of broadband networks are increasingly cited by
corporations as a factor in site-selection decisions.
-- Finally, governments themselves, often with thousands of field-based
employees and high-bandwidth applications, are frequently unable to
purchase the type of mobile bandwidth they require from the commercial
market.
"Wireless networks by themselves, however, will not solve all of these problems," said O'Brien. "Municipal leaders should recognize that simply deploying a wireless network is not a broadband strategy. These leaders have to acquire a precise understanding of their constituents' needs and ensure their cities' technology remains flexible and adaptable."
When municipal policymakers are ready to examine potential investments to improve broadband access, they will have to address several key issues: First, they must determine whether constructing their own infrastructure is a fiscally sound proposition for both now and the future -- with an investment in core fiber infrastructure as a major consideration. If not, a third-party can be hired. In many cases, subsidies will help consumers and businesses defray access costs. Additionally, municipal leaders will need to educate their constituents about the benefits of developing a broadband program.
"Forward-thinking policymakers will begin by assessing the unique long-term broadband requirements of their businesses and residents," O'Brien said. "These municipalities will carefully manage a comprehensive portfolio of initiatives and a group of vendors to address their communities' long-term needs -- not just those headline-grabbing developments that might only tackle short-term needs."
About Diamond
Diamond is a management and technology consulting firm. Recognizing that information and technology shape market dynamics, Diamond's small teams of experts work across functional and organizational boundaries to develop new strategies, improve operations, and deliver results. Since the greatest value in a strategy, and its highest risk, resides in its implementation, Diamond also provides proven execution capabilities. We deliver three critical elements to every project: fact-based objectivity, spirited collaboration, and sustainable results. To learn more visit http://www.diamondconsultants.com/.
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