The State of Digital Communities

The municipal wireless phenomenon was born within a paradigm shift fueled by two elements. The first involves a desperate need from government officials to solve real problems and the second has to do with the arrival of the right technology. The intersection of these two elements has resulted in an exciting market which seems to have doubled in momentum since last year and is fueled by the ability to deliver more efficient government services and foster economic prosperity.

When I first stumbled onto the municipal wireless field in late 2003, I mistakenly saw it only as an alternative to access. If you are familiar with Intel's Digital Community initiative and the great companies who foster this initiative, you know that it has little to do with access, but instead promotes solutions. Solutions for example, which enable mobile workers, provide life saving capabilities for first responders, and enable device monitoring and control which enable greater efficiencies for local government. In almost all cases, the visionaries and project managers behind these wireless initiatives are leveraging the network asset to achieve broader economic and community benefits which extend to citizens and local business. But enough talk about the initiative. There are four topics which have occupied my thoughts recently.

About broadband
2005 was an amazing year and one accomplishment that I thought we had all made was to recognize that truly sustainable business models involve cash flows which support marketing, network operations and customer support. As more communities announce RFP's and wireless projects, I am hearing the call for "free access" with increased frequency. Worldwide broadband rankings have nothing to do with free access but instead have everything to do with sustainable business models which foster affordability, ubiquity and higher speeds. Regarding the increased favor toward "Free Access" models, I would encourage caution given two biases.

The burden of free models in limiting profit opportunities: There are hundreds of cities who want to partner with service providers and deploy networks but currently only a handful of service providers with capital to engage. This lopsided situation can be remedied by investors showing a profit which should encourage additional investment. The service providers partnering with cities should be given the freedom to explore all revenue models. As the term public-private partnership becomes commonplace, let us remember that a partnership implies equal risk and equal opportunity for upside. The upside for local government in these projects is derived from the cash savings, enabling mobile workers, implementation of device monitoring and through extending rich data to our first responders. Without private sector profitability, the downside risk involves the possibility of a dismantled network or even worse, a constricted market.

The implications of human nature: Fresh out of college, I worked for several years in a county public health facility as a clinical case manager. I had an opportunity to learn from some of the best councilors and administrators in the field and a chance to learn a little bit about poverty, the digital divide and human dignity. I worked with a variety of people, including people who suffered from mental disabilities, drug and alcohol addictions, some who were homeless, some elderly and the categories go on. These clients were often unable to afford service but services were never provided for free, instead there were payment plans and sliding fee schedules. I learned that services rendered for "free" would always hinder an individual from achieving life affirming change. I learned that a hand out of an item or service with real value can shame a person, while an intelligent plan can enable a person to hold their head high with dignity. As we look to extinguish the digital divide, we should focus our resources on education, mentorship programs and payment programs rather than on free access or free devices. For those individuals who truly want to step up out of the divide, do not lower the bar of expectation; for doing so will only crush their spirit.

Wireless means more service providers
Wireless technology holds implications for wireline business models which have been built on the foundation of right of way. Wireline technology faces complications such as the need to lease tracks of land and labor intensive activities such as ditch digging. Without steep barriers to entry, broadband faces predictable changes. Open up your laptop in a coffee shop, hotel or airport. With increasing frequency you are able to safely access your corporate intranet through a variety of WiFi SSID's, GPRS, EVDO and the list continues to grow. Add to this the ubiquitous reach of WiFi Mesh and the approaching implications of WiMax and it is apparent that a paradigm is changing. Successful service providers will explore and develop alternative ways to differentiate from one another and compete for customer loyalty. Location aware services for vehicles, sensor monitoring and tools for mobile workers are among a long list of applications through which service providers can begin to differentiate and compete for customer loyalty.

Potential to specialize in verticals
Forward thinking companies will embrace the municipal wireless turmoil and seek to provide new product offerings given the new reality of broadband choice. On the municipal front there are opportunities to deliver tools which enhance productivity and address the difficulty surrounding licensing and upgrades. Given the foot print of municipal network projects, there are additional opportunities to specialize and deliver tools to small and medium sized business verticals such as construction, food services and local delivery. Those service providers who team with software companies to offer solutions which increase worker efficiency will truly delight and earn customer loyalty.

Digital Inclusion
When we talk about addressing the digital divide we need to make plans which will arrest an expanding chasm. I often share the story of a two students. One student has access to a PC and broadband at home and the other does not. In fact one student is my son. In a moment of clarity I watched as my son searched and downloaded points to prepare for a debate at school the next day. A task he completed in a few minutes. The rest of his afternoon was spent rehearsing. It is obvious that slated against a student without access to technology he would have an advantage. Who would graduate, who would go on to college and who would obtain the higher paying job? It is clear that the very act of using technology broadens the chasm; it makes it harder for those on the fringe to participate equally in society and our economy. Government and industry share a joint responsibility to address this issue. Just a few of the successful components of Digital Inclusion programs involve government leadership, local program administration inclusive of education and mentoring and industry partnerships to enable creative financing which enable equal access to the same technologies which you and I have.

You can find out more about the Digital Community initiative at www.digitalcommunities.com.