An Analysis of Municipal Wireless Broadband Coverage WBC Models

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An Analysis ofMunicipal Wireless Broadband
Coverage (WBC) Models

• Prof. Kaili Kan
• School of Economics Management, BUPT
• kankaili_at_gmail.com
• CPRsouth Manila Jan.19, 2007

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Development of WBC

• Proliferating throughout the world over the last
  two years
• 40 cities by the end of 2005
• 400 cities by mid-2006
• Especially in Asia-Pacific region Singapore,
  Taiwan, etc.

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WBC Characters

• Goals
• Social development municipal infrastructure
  (5th Utility)
• Social welfare narrow the digital divide
• NOT for profit
• Driving force
• Municipal governments
• NOT telcos

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Current WBC Models

• Financed, built, owned and operated by
• Municipal government agencies
• Private industry
• Government contracted private corporation
  (monopoly)
• Grass-root communes

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Analysis of Models (1)

• Financed, built and operated by municipalities
• Pros
• Best implements government goals (free-of-charge
  possible)
• Cons
• Burden for the government financial, operational
  and legal (equality of service?)
• No public participation
• No market mechanism
• Rigid planning lacks flexibility

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Analysis of Models (2)

• Financed, built and operated by private industry
• Pros
• No burden for government
• Market mechanism reacts quickly
• Cons
• Deviate from government goals for profit
• Potential spectrum shortage for full competition
• Need to regulate licensing, tariffing, universal
  service, etc.

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Analysis of Models (3)

• Financed, built and operated by government
  contracted private monopoly
• Pros
• Possible to implement government goals
• Cons
• Conflict between government and corporate goals
• Difficulties in regulating a monopoly
• Lack of market dynamics

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Analysis of Models (4)

• Financed, built and operated by grass-root
  communes
• Pros
• Mobilizes public participation
• Best serves social interest (free-of-charge
  possible)
• No burden for government
• Cons
• Hard to reach critical mass for rapid expansion

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The Internet Spirit

• Of the people,
• By the people,
• For the people.
• One for all, all for one.

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WBC Model Approach

• Municipal wireless broadband coverage
• Why do we need telcos?
• Why not by the people?
• Who is leader of the people?
• What is the role of the leader?

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The Wireless Commune

• Led by the Government,
• Built by the People.
• Active leading role by municipal governments
• Active participation by the people
• Shared network resources
• Competition among telcos for connection

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Example Beijing Commune (1)

• Beijing government for police, traffic control,
  public areas, etc.
• 2,000-3,000 access points (APs)
• Wi-Fi (802.11g) 54 Mbps/AP
• Covers main streets and public areas
• One-time funding USD 2-3M
• For own usage (maintenance)
• Over capacity free access open to public
• Beijing Wireless Commune established

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Example Beijing Commune (2)

• Local entities (e.g., BUPT)
• Campus covered by Wi-Fi hotspots for own staff
  and students
• Open to non-BUPT users (commune members) in
  exchange of
• Free usage of commune APs
• BUPT becomes commune member
• Municipal WBC (commune APs) expands by members
  joining

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Example Beijing Commune (3)

• Individuals
• Set up own AP at home/office
• Open to members in exchange of
• Free usage of WBC (commune APs)
• Becomes commune member
• Municipal WBC further expands

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Example Beijing Commune (4)

• General public (non-members)
• Free access at controlled speed and lower
  priority at commune APs
• Becomes potential member by usage dependence
• Visitors free access for limited period
• Non-member usage (speed, priority, etc.) used as
  control for membership expansion (diminishes as
  WBC grows)

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Example Beijing Commune (5)

• Telcos
• Each member pay for own Internet connection via
  telecom operators
• Telcos compete for connection and maintenance
  businesses
• Telcos transformed into hollow pipes and
  maintenance service providers

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Advantages of Wireless Commune

• Best achieves social goals
• Least risk for governments (financial,
  operational, legal, political, etc.)
• Fast expansion (Beijing estimated to reach
  100,000 APs in 3-5 years)
• Telecom sector restructured
• New players municipal government, end-users
• Telcos being phased out

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Municipal Wireless Broadband CoverageChanging
the World
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Thank youStay in touch

• kankaili_at_gmail.com