Making Wi-Fi fly
For many government agencies, finding money to pay for a large technology initiative, such as a Wi-Fi network, presents a major obstacle. Although a city council may understand the benefits of the wireless applications that various departments want to implement, the capital to fund the Wi-Fi network and support the applications may not be available. In response, many hardware and software vendors are designing creative financing methods for wireless applications and networks.
When starting a Wi-Fi network, local governments can use long-term financing to pay less as more applications and users come online. While some vendors offer their own financing, others work with third parties to structure payments to suit the needs of the city or county. With a multi-year commitment to finance a wireless network, cities and counties can plan for consistent, relatively low-interest rate funds over several years.
One way local governments can provide inexpensive broadband access for residents and businesses is to ask private Internet service providers (ISPs) to help cover the costs of building the network. Across the country, many ISPs are working with vendors to offer packages that include grants to cities and counties to get public Wi-Fi networks off the ground. Once the networks are operating, the ISP could offer “premium” access to users, an upgrade from the free service that will generate revenue for the ISP. Although grants, which make funds available immediately, may be appealing to some communities, some privacy and equality groups are concerned that many residents would need service upgrades to gain proper wireless speeds, thereby providing an unfair advantage to the ISP that offered the grant.
If grants are not available or are objectionable, many network equipment vendors can create payment plans that increase incrementally as Wi-Fi revenue streams grow. For example, if cities use wireless networks to help collect revenue from permits, parking tickets or inspections, part of those funds could help subsidize the wireless network. A city could create a plan that delays upfront payments for the Wi-Fi network and increases them as revenue grows.
Alternatively, cities and counties might include Wi-Fi project costs in the budget for a large infrastructure project, such as replacing city light posts or installing them along a new road. By installing the wireless equipment and the new infrastructure at the same time, local governments can save time and future expense. However, city and county leaders should be prepared to answer questions about the necessity of including a wireless system within the larger infrastructure project.
The methods of paying for Wi-Fi are as varied as the network configurations and the types of wireless applications agencies are deploying. As lessons are learned from wireless projects and funding options are tested, project leaders likely will find Wi-Fi projects less daunting and easier to finance.
The author is senior vice president for San Ramon, Calif.-based Accela.
