Although chances are good that the proposed San Francisco wireless network that will be built and operated by EarthLink and Google will eventually pass muster with the city's Board of Supervisors, opposition to the project still remains strong among a number of citizens and interest groups.
This particular editorial makes the argument that, among its faults:
- The network is slow
- Not everyone will be able to access it
- The city will be bound to its agreement with Google and EarthLink for a number of years
- The fees being paid by EarthLink will not amount to much
While there are some legitimacies to these points, a credible alternative has not yet been put forward. There have been calls for the city to build the network itself and lease connections to companies who, in turn, will provide individual access accounts to users, but that seems extremely complex and, frankly, do citizens really want their city government to get into the wireless network business?
At this point, it seems that the deal will go through in San Francisco. We have to remember that citywide wireless is still in its early stages and, to the disappointment to some, there will be some bumps and bruises along the way.
1. Hi Michael: I want to make a couple of comments to the posting, and the pundits out there that are advocating for the city-owned model in San Francisco.
"The network is slow":
In regards to comments made on other blogs and in the media about the speeds being offered by EarthLink and Google – well, frankly, the comments are unfounded and they just are empirically not true. Jupiter Research has recently done a study on how people use the Internet and out of the top 25 uses, only two, yes two, require bandwidth speed beyond 300 kbps (those, by the way, are playing online games and downloading software).
Jupiter reports and confirms that 300 kbps is just fine for email, searching, online shopping, paying bills, IMing, booking travel or listening to audio.
You might be saying to yourself, “really, listening to audio?” Julie Ask, a Jupiter wireless analyst that works on such reports states that using 300 kbps to download a song is plenty of bandwidth for the average user’s needs…and if you want to stream your audio the bandwidth needed is even closer to dial-up speeds – less than 100 kbps. So the ‘300 kbps free tier is just too slow’ is really just an irrelevant argument.
The same goes for VoIP service. VoIP compression algorithms allow very high quality voice traffic to travel over IP using only 64 kbps. It is very feasible that the San Francisco Wi-Fi network could carry a significant amount of voice traffic in the not too distant future, at much lower cost than other wireless alternatives currently available.
"Not everyone will be able to access it":
I think it is irresponsible to assume that everyone will be able to have access - the point is that EarthLink and Google are doing alot to ensure that many more can access a broadband network, than are able to today.
• EarthLink will offer premium service on an open access basis to other unaffiliated service providers, who will purchase access to the network and sell their own branded services to consumers. This will provide residents, visitors and businesses an option to choose between multiple service providers and plans. And many of those choices are much cheaper than the existing services available to consumers today (if in fact, service is even offered in some of these areas/zip codes by incumbent providers)
• EarthLink will pay to the City significant revenues over the contract term. Five percent of gross access revenues for utilization of the City’s Right of Way, including a non-refundable $600,000 pre-payment, will go to the City’s ‘Digital Inclusion Programs’.
• In addition to the above bullet, EarthLink and Google will also help the City meet the connectivity needs of disadvantaged San Franciscans.
o The basic service, obviously, provides free access to everyone
o EarthLink will provide up to 3200 discounted premium accounts to low-income and disadvantaged families
o EarthLink and Google will be working with TechConnect to address other Digital Inclusion components, including training, education and access, content and hardware
"The fees being paid by EarthLink will not amount to much":
EarthLink will build the wireless network at an approximate cost of $6 - $7 million. It will spend an additional estimated $8 - $10 million to manage, maintain and upgrade the network over the following seven years. Under the agreement, no City funds will be used to build and maintain the network. EarthLink is laying out the cash to build this network, as stated - not the City nor the taxpayers.
EarthLink will pay to the City significant revenues over the contract term. 5% of gross access revenues for utilization of the City’s Right of Way, including a non-refundable $600,000 prepayment, for Digital Inclusion Programs.
$99 per year per City street light pole utilized in the network. The City may also lease or license, at market rates, access to certain City building rooftops and structures for the location of portions of EarthLink’s network equipment.
"The City will be bound to its agreement with Google and EarthLink for a number of years":
The initial term of the contract will be four years, with three successive four-year renewals. These are not outlandish, and by most accounts, very fair, terms between both the City and EarthLink.
Further, while many have picked apart what they don't like...the City's pre-eminent Think Tank, SPUR, has come out in favor of the agreement. Their memo to the board of supervisors can be found here:
http://www.spur.org/documents/memo012607.shtm
We’ve said it before, and feel it is important to say here again, that this agreement catapults San Francisco into a leadership position in wireless technology. This network ensures universal, affordable wireless broadband access for all San Franciscans.
Other advantages includes having a network that helps improve the efficiency of City government, and stimulating investment into developing tools and applications to take advantage of wireless technology… and technical innovation is something that San Francisco is renowned for and one of the reasons why some of the worlds greatest innovators call the Bay Area home and commute to/from the City.
And as stated above, our network will provide more consumer choice and competition for broadband services than exists in the marketplace today.
Thank You,
Jerry Grasso
EarthLink
Posted at 2:37PM on Jan 29th 2007 by Jerry Grasso