Municipal Wireless - State of the Industry

THE RIGHT
APPROACH
TO MUNICIPAL WIRELESS Eric DaVersa
Vice-President, Business Development
INITIATIVES www.netlogix.com

Who is NetLogix?
NetLogix is a Telecommunications Consulting, Engineering, and Network Management
services company specialized in wireless communications networks and technologies.

NetLogix caters to Telecommunications National
a variety of Carriers Systems Integrators
customers
segmented by
four distinct
classifications. Federal & Local Enterprise
Government

© Copyright 2007 All Rights Reserved
www.NetLogix.com

NETLOGIX CORPORATE OVERVIEW
•Key Statistics:
– Founded: 2003
– Annual Revenues: $23M
– Employees: 20

•Key Commercial Clients:
– T-Mobile, Aiirmesh Communications, Citizens Communications, Covad
Communications, Mainline Information Systems, EarthLink, MetroFi, and more.

•Key Government Clients:
– Bureau of Indian Affairs, Sandoval County (NM), Appleton (WI), City of Corpus
Christi (TX), City of Maywood (CA), City of Ketchum (ID), and many more.

•Core Services:
– Telecommunications Consulting
– Wireless and IP Engineering
– Network Design, Deployment, and Optimization
– Network Monitoring, Management, & Maintenance

© NetLogix 2007 All Rights Reserved

HOW’D IT ALL BEGIN?

1. BEGAN IN THE HOME/OFFICE
2. SPREAD TO HIGH LOITERING AREAS
HOTELS/RESORTS
COFFEE SHOPS
3. BECAME A MUNICIPAL AMENITY
LIBRARIES
CITY FACILITIES
PARKS / REC CENTERS
BUSINESS DISTRICTS
4. DEMAND FOR CITYWIDE WiFi IS
GROWING

WiFi IS NOW
AVAILABLE IN MANY DEVICES


…AND IS EMERGING IN MORE
PRACTICAL DEVICES!


THE BIG QUESTION...

HOW ARE CITIES GOING TO
PAY FOR THIS NETWORK?
Image credit to “Digital City Expo” © NetLogix 2007 All Rights Reserved

USA CITIES ON RECORD STATING
AN INTEREST IN WIFI


USA CITIES WITH AN OUTDOOR
WIFI NETWORK


USA CITIES WITH
“AT LEAST 50% CITYWIDE”
WIFI COVERAGE

Prevailing Network Ownership Model:
PUBLIC/PRIVATE PARTNERSHIP

By Definition…
– Municipality forms a “partnership” with a Service Provider whereby there
is give and take on both sides of the agreement.
– Typically the Service Provider agrees to fund the network construction
and the Municipality grants access at little-to-no cost for the right to
install on Municipally-owned properties.
– ISPs: EarthLink, MetroFi, MobilePro, Google, Aiirmesh, Citizens/Frontier
Internet, US Internet, Embarq, RedMoon Broadband, and many more…
– Most Municipalities pursued this model early on…but times have
changed.


LET’S TALK
ABOUT THE
GREAT BIG
ELEPHANT IN
THE LIVING
ROOM!


THE MODEL HAS SHIFTED
► Several ISPs announced their exit from
Municipal Wireless.
► This triggered a slew of articles labeling
Municipal Wireless as a “failure”.
► They were partly correct, but the stories
sure made for great headlines.


WHERE “FAILURES” OCCUR
1. The consumer access model where Internet
access is the only application.
2. The lack of ubiquitous coverage by the ISPs.
3. Improperly set expectations.
4. Mounting asset challenges.
5. Inexperienced engineering results in poorly
architected network.
6. Lack of an applications plan.


WHAT ARE CITIES GOING
TO DO NOW?


MUNICIPALITIES CAN HOPE
FOR COMMUNITY WIRELESS
NETWORKS TO DEVELOP


COMMUNITY WIRELESS
WON’T ADDRESS MUNICIPAL NEEDS

Low power
Security issues
Lack of features
Lack of control
Lack of flexibility
Not managed appropriately


THERE ARE LICENSED WIRELESS
BROADBAND TECHNOLOGIES
EVDO
– SPRINT
– VERIZON
– ALLTEL

WiMAX
– CLEARWIRE
– XOHM (SPRINT)
LTE
– VERIZON
UMTS HSPA/HSDPA
– T-MOBILE


Average Data Transfer Rates (MP3 Song)
MP3 song

GPRS 35 Kbps 18 mins

CDMA 1X 60 Kbps 11 mins

EDGE 115 Kbps 6 mins

UMTS 256 Kbps 3 mins

EVDO 800 Kbps 50 secs

HSDPA 1.0 Mbps 38 secs

WiMAX 4.0 Mbps 10 secs

LTE 4.0 Mbps 10 secs

802.11g 6.0 Mbps 7 secs

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 (MB)
aacPlus v2 aacPlus AAC/WMA MP3
32 Kbps 64 Kbps 128 Kbps 160 Kbps


REGARDLESS OF
TECHNOLOGY...

MUNICIPALITIES WILL NEED
TO DEVELOP A PLAN FOR
APPLICATIONS


THE NEW MODEL
1. “MULTI-USE USE” Networks
2. These are APPLICATIONS-DRIVEN solutions
3. It is NOT A PURE ROI MODEL
► Some applications are difficult to quantify their
true cost and benefit
► Some applications do provide an ROI

4. It is an INFRASTRUCTURE MODEL
► The information superhighway is indeed a
highway!


GOAL: INTELLIGENT MULTI-USE NETWORK


APPLICATIONS THAT LEVERAGE
MUNICIPAL WIRELESS

Automated Meter Systems
Public Safety Enhancements
Disaster Management
Increased Efficiencies
Economic Development
Digital Inclusion
And much, much more…


BENEFITS OF AMI
Reduces data collection costs
Improves meter reading accuracy
Enables faster, more efficient reading times and billing
process
Increases operational efficiency by providing real time
pricing and time-of-use metering
Improves customer service
Enables conservation of resources
Allows for estimated usage on daily / hourly basis
Enables advance purchase of supply at wholesale
rates


AMI NETWORK ELEMENTS


AMI PRODUCT MIX
Data Collection Distribution
Vendor Meters Network Network Software Comments
Badger Meter X X X
Cannon Technologies X X
Cellnet X
Comverge X Cellular
DCSI X X X Powerline Based
Echelon X X X X Powerline Based
Elster X X
eMeter X
Hexagram X
Hunt Technologies X X X
Itron, Inc. X X X X
Landis + Gyr X X X
Sensus Metering Systems X X X
Silver Spring Networks X X
SmartSynch X X
Tantalus Systems Corp X X
Transdata X
Trilliant Incorporated X


PARKING
METER
AUTOMATION


PARKING SENSOR TECHNOLOGIES...

No more “tire chalking”
Know what areas are being used
Know when those areas are being used
Know when vaults are full
Reports
– Audit validation
– Performance by space
Know when meters are jammed
Meters having low / dead batteries


APPLICATION:
PUBLIC SAFETY


GUNSHOT DETECTION & LOCATION SYSTEMS

Stationary mounted - buildings, poles
≤ 20 sensors per square mile
Event classified as gunshot, firecracker, backfire, etc.
Use and/or add to wireless infrastructure
Audio & precise forensics data permanently recorded

APPLICATION:
VIDEO SURVEILLANCE


APPLICATION
TRAFFIC CONTROL


APPLICATION:
INFRASTRUCTURE SENSORS


APPLICATION
WORKFLOW AUTOMATION


ECONOMIC DEVELOPMENT

Serves the entire population
Entice industry
Bring higher paying jobs
Enhance tax base


A TALE OF 3 CITIES

THREE CASE STUDIES OF
MUNICIPAL WiFi

CITY “A”: DO NOTHING

CITY “B”: GET IT FREE

CITY “C”: BUILD IT OURSELVES

Source: ICT CEDS Report, March 2006


POTENTIAL ECONOMIC IMPACT
CITY “A” CITY “B” CITY “C”
DO NOTHING GET IT FREE BUILD IT

INITIAL INVESTMENT $0 $0 $ 80,000

$ 60/mo $ 0/mo
COST $ 22/mo
(EVDO) ($150 one time)
12-MONTH
$ 720 $ 288 $ 0 / $ 150
BUSINESS COST
TAXES RETURNED*
Business License $0 $0 $ 5,000
Business Income $0 $0 $ 10,000
Personal Income $0 $0 $ 20,000

24-MONTH
$ 1,440 $ 576 $ 0 / $ 150
BUSINESS EXPENSE
24-MONTH
$0 $0 $ 80,000
TAXES RETURNED

* Assume (1) new business, grossing $1M, with a 5% bottom line, and 10 employees

APPLICATIONS THAT LEVERAGE
MUNICIPAL WIRELESS

Advanced Metering Infrastructure
Public Safety Enhancements
Disaster Management
Increased Efficiencies
Economic Development
Digital Inclusion
And much, much more…


“DIGITAL INCLUSION”

HIGHLY COMPLEX
REQUIRES RECURRING INVESTMENT
LONG TERM COMMITMENT
PROVIDING BROADBAND DOES NOT
SOLVE DIGITAL INCLUSION!!!
– PCs (LOW COST?)
– TRAINING


DOWNTOWN SAN JOSE PIGEON PROJECT


WIRELESS TECHNOLOGY
WILL REQUIRE CHANGES TO
THE MUNICIPAL MINDSET


THANK YOU!
Eric DaVersa
Vice-President, Business Development
NetLogix
(858) 764-1998
eric@netlogix.com


Municipal Wireless - State of the Industry

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