Subject: [NEXTEL-1] Imagination Runs Wild In California

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Date: Mon, 04 Nov 2002 13:25:38 -0500

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Imagination Runs Wild In California

Efforts to set up Wi-Fi systems in public facilities are getting attention these days. Most are free, but the West Coast state is looking to charge.

By Peggy Albright
November 4, 2002

Wireless Week
© 2002, Reed Business Information, a division of Reed Elsevier Inc. All Rights Reserved.

The Wi-Fi phenomenon that is taking the enterprise market by storm, creating new business opportunities for hot spot services and spurring a free community networking movement, may have yet another model to come: a revenue-generating service run by budget-challenged public agencies.

The California Public Utility Commission is investigating the possibility of installing a Wi-Fi network that business professionals and other visitors could use to access the Internet or their own corporate systems when they come to the CPUC offices for hearings or other meetings. The network also could provide staff access to the agency network from various locations on the commission campus. While the agency clearly envisions offering the technology as a convenience for visitors, it sees it as a potential source of income as well.

"We want to make it something of a revenue generator," says Ed Quiroz, a regulatory analyst in the office of ratepayer advocates in the consumer issues branch at the CPUC.

Quiroz describes "505 Connect"–a name that reflects the commission's address at 505 Van Ness Avenue in San Francisco–as in an early proposal stage. Those working on the proposal still are finalizing system requirements and specifications, Quiroz says, and looking for a funding source.

The agency hopes to obtain grants to support the project so funding won't come out of CPUC or office of ratepayer budgets. While the commission currently does not have a request for proposals ready to issue, Quiroz hopes it will in the next fiscal year, which begins in July.

Efforts to set up Wi-Fi systems in public facilities are getting attention these days, with those offered by the cities of Seattle and New York considered leading examples, says Tim Pozar, a founder of the Bay Area Wireless Users Group.

But those are free. For a public agency to set one up as a potential income source is different, he says.

"As for charging for it, that's usually not entertained," he says.

Brian Grimm, spokesman for the Wi-Fi Alliance, says he's never heard of an organization charging users for guest access to a Wi-Fi network.

"That's actually a very interesting twist," he says.

So how does California expect to do it?

Quiroz acknowledges the CPUC staff is not finding "fully defined" models of how such a system would work. They're looking for answers to many questions:

Should the agency's IT department or another part of the organization manage it? Should the agency outsource the service? If so, what liability issues need addressing? As for revenue generation, would people sign up for a day's worth of usage? How would they pay for it? How would you ensure security of the network? Finally, how would you get subscribers interested and make it worth investing time, effort and money?

The questions reflect those already addressed by hot spot providers, such as the service T-Mobile offers at Starbucks Coffee cafes, and by service aggregators, like Boingo Wireless, that have come up with the answers they needed to launch nationwide services.

While those are among the most high-profile Wi-Fi networks launched to date, their ability to generate meaningful income remains to be seen. Many of their predecessors, including MobileStar, which T-Mobile acquired, and hereUare, have failed.

The CPUC has a more limited vision in mind, however, and may figure it out yet. If it does, others may even mimic the model they create.

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