Wednesday, March 08, 2006

Wireless Cities

Metropolitan Wi-fi networks are a good idea that will happen world wide.  The biggest argument at the moment seems to be how to pay for it. 

Some people are in favor of making the users pay for it. Critics of this solution point out that this excludes those who can't afford it.  They are right. It does.  It's also a hassle since you might have to subscribe to multiple networks if you frequent multiple cities. Another issue is tourists. Yes it sounds like a good way to make money off of tourists, but it excludes those who don't want to pay and those who can't or don't want to figure out how to use the network in a new city.

Some people are in favor of government paying for it. I hate to disillusion anyone but the government doesn't pay for anything. The taxpayers do.  The government simply adds an expensive bureaucratic system to anything funded "by the government".  That's great for some things; not so great for others. It also brings up the question, "Do you want the government to own the machines your internet searches go through?"  If a corporation owns them and betrays the public trust, they can be replaced a lot easier than government institutions.

Some are in favor of "allowing" private companies to provide the service free of charge to the consumers.  At some point that company will need to find a way to profit from the endeavor. Why not advertising? It wouldn't be hard to write localization software (think GPS without satellites) that displays ads for nearby businesses. You could find out what the daily special is at a nearby restaurant and have recent reviews available as you walk down the street.  Clubs and bars could advertise what band is playing and their current drink specials.  Need a new shirt? It's an advertising opportunity for some retailer. Want to find a museum in a city you are visiting? Part of the revenue could go to public service ads. Tourists, locals and business users would all benefit. Don't want to see ads? Get out of the city. If you can see, you can't walk down a city street without seeing an ad for something.

Even if the network is run by a government entity, localized advertising is a good way to either offset the costs or pay for the service. We might find, like we did with TV and radio, that it actually generates income.  How much will a 10% spot during Mardi Gras cost in The French Quarter?

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