Municipal Wireless - State of the Industry

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This is a presentation given at Digital City Expo in Phoenix in January 2008. It outlines some excellent information on the industry.

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Municipal Wireless - State of the Industry

  1. 1. THE RIGHT APPROACH TO MUNICIPAL WIRELESS Eric DaVersa Vice-President, Business Development INITIATIVES www.netlogix.com
  2. 2. 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
  3. 3. 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
  4. 4. 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 © NetLogix 2007 All Rights Reserved
  5. 5. WiFi IS NOW AVAILABLE IN MANY DEVICES © NetLogix 2007 All Rights Reserved
  6. 6. …AND IS EMERGING IN MORE PRACTICAL DEVICES! © NetLogix 2007 All Rights Reserved
  7. 7. THE BIG QUESTION... HOW ARE CITIES GOING TO PAY FOR THIS NETWORK? Image credit to “Digital City Expo” © NetLogix 2007 All Rights Reserved
  8. 8. USA CITIES ON RECORD STATING AN INTEREST IN WIFI © NetLogix 2007 All Rights Reserved
  9. 9. USA CITIES WITH AN OUTDOOR WIFI NETWORK © NetLogix 2007 All Rights Reserved
  10. 10. USA CITIES WITH “AT LEAST 50% CITYWIDE” WIFI COVERAGE © NetLogix 2007 All Rights Reserved
  11. 11. 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. © NetLogix 2007 All Rights Reserved
  12. 12. LET’S TALK ABOUT THE GREAT BIG ELEPHANT IN THE LIVING ROOM! © NetLogix 2007 All Rights Reserved
  13. 13. 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. © NetLogix 2007 All Rights Reserved
  14. 14. 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. © NetLogix 2007 All Rights Reserved
  15. 15. WHAT ARE CITIES GOING TO DO NOW? © NetLogix 2007 All Rights Reserved
  16. 16. MUNICIPALITIES CAN HOPE FOR COMMUNITY WIRELESS NETWORKS TO DEVELOP © NetLogix 2007 All Rights Reserved
  17. 17. Image credit to Meraki Networks © NetLogix 2007 All Rights Reserved
  18. 18. COMMUNITY WIRELESS WON’T ADDRESS MUNICIPAL NEEDS Low power Security issues Lack of features Lack of control Lack of flexibility Not managed appropriately © NetLogix 2007 All Rights Reserved
  19. 19. THERE ARE LICENSED WIRELESS BROADBAND TECHNOLOGIES EVDO – SPRINT – VERIZON – ALLTEL WiMAX – CLEARWIRE – XOHM (SPRINT) LTE – VERIZON UMTS HSPA/HSDPA – T-MOBILE © NetLogix 2007 All Rights Reserved
  20. 20. 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 © NetLogix 2007 All Rights Reserved
  21. 21. REGARDLESS OF TECHNOLOGY... MUNICIPALITIES WILL NEED TO DEVELOP A PLAN FOR APPLICATIONS © NetLogix 2007 All Rights Reserved
  22. 22. 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! © NetLogix 2007 All Rights Reserved
  23. 23. GOAL: INTELLIGENT MULTI-USE NETWORK © NetLogix 2007 All Rights Reserved
  24. 24. APPLICATIONS THAT LEVERAGE MUNICIPAL WIRELESS Automated Meter Systems Public Safety Enhancements Disaster Management Increased Efficiencies Economic Development Digital Inclusion And much, much more… © NetLogix 2007 All Rights Reserved
  25. 25. 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 © NetLogix 2007 All Rights Reserved
  26. 26. AMI NETWORK ELEMENTS © NetLogix 2007 All Rights Reserved
  27. 27. 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 © NetLogix 2007 All Rights Reserved
  28. 28. PARKING METER AUTOMATION © NetLogix 2007 All Rights Reserved
  29. 29. 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 © NetLogix 2007 All Rights Reserved
  30. 30. APPLICATIONS THAT LEVERAGE MUNICIPAL WIRELESS Automated Meter Systems Public Safety Enhancements Disaster Management Increased Efficiencies Economic Development Digital Inclusion And much, much more… © NetLogix 2007 All Rights Reserved
  31. 31. APPLICATION: PUBLIC SAFETY © NetLogix 2007 All Rights Reserved
  32. 32. 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 © NetLogix 2007 All Rights Reserved
  33. 33. APPLICATION: VIDEO SURVEILLANCE © NetLogix 2007 All Rights Reserved
  34. 34. APPLICATION TRAFFIC CONTROL © NetLogix 2007 All Rights Reserved
  35. 35. APPLICATIONS THAT LEVERAGE MUNICIPAL WIRELESS Automated Meter Systems Public Safety Enhancements Disaster Management Increased Efficiencies Economic Development Digital Inclusion And much, much more… © NetLogix 2007 All Rights Reserved
  36. 36. APPLICATION: INFRASTRUCTURE SENSORS © NetLogix 2007 All Rights Reserved
  37. 37. APPLICATIONS THAT LEVERAGE MUNICIPAL WIRELESS Automated Meter Systems Public Safety Enhancements Disaster Management Increased Efficiencies Economic Development Digital Inclusion And much, much more… © NetLogix 2007 All Rights Reserved
  38. 38. APPLICATION WORKFLOW AUTOMATION © NetLogix 2007 All Rights Reserved
  39. 39. APPLICATIONS THAT LEVERAGE MUNICIPAL WIRELESS Automated Meter Systems Public Safety Enhancements Disaster Management Increased Efficiencies Economic Development Digital Inclusion And much, much more… © NetLogix 2007 All Rights Reserved
  40. 40. ECONOMIC DEVELOPMENT Serves the entire population Entice industry Bring higher paying jobs Enhance tax base © NetLogix 2007 All Rights Reserved
  41. 41. 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 © NetLogix 2007 All Rights Reserved
  42. 42. 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 © NetLogix 2007 All Rights Reserved
  43. 43. APPLICATIONS THAT LEVERAGE MUNICIPAL WIRELESS Advanced Metering Infrastructure Public Safety Enhancements Disaster Management Increased Efficiencies Economic Development Digital Inclusion And much, much more… © NetLogix 2007 All Rights Reserved
  44. 44. “DIGITAL INCLUSION” HIGHLY COMPLEX REQUIRES RECURRING INVESTMENT LONG TERM COMMITMENT PROVIDING BROADBAND DOES NOT SOLVE DIGITAL INCLUSION!!! – PCs (LOW COST?) – TRAINING © NetLogix 2007 All Rights Reserved
  45. 45. DOWNTOWN SAN JOSE PIGEON PROJECT © NetLogix 2007 All Rights Reserved
  46. 46. GOAL: INTELLIGENT MULTI-USE NETWORK © NetLogix 2007 All Rights Reserved
  47. 47. WIRELESS TECHNOLOGY WILL REQUIRE CHANGES TO THE MUNICIPAL MINDSET © NetLogix 2007 All Rights Reserved
  48. 48. THANK YOU! Eric DaVersa Vice-President, Business Development NetLogix (858) 764-1998 eric@netlogix.com © NetLogix 2007 All Rights Reserved

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