September 9, 2005

Philadelphia WiFi Update

Andy Kessler:

But it turns out cities get to sort of cheat, cite eminent domain, and place a lot of gear on their own light poles and radio towers. No startup gets that deal. And new mesh technologies mean Philly can plug into the Internet just once, paying wholesale rates, unlike the folks that run Starbucks or hotel hotspots, who overpay (probably to Verizon) for the Internet connection their Wi-Fi users share.

But the real whopper is that - as Ms. Neff claims - by the third year, Philly will be saving $2 million a year on their $150 million IT budget by not having to pay Verizon for Internet access at their 24,000-employee city offices. Hmmm. That whole disadvantaged thing is just icing. Sounds like some sort of arbitrage.

Posted by James Zellmer at September 9, 2005 12:01 AM | Subscribe to this site via RSS:
Posted to Broadband