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E administration 990126


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a presentation about the study on the information public private partnership WiFly, made in Macau 2010

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E administration 990126

  1. 1. Marketing the wireless city via a public private partnership Yuntsai Chou Associate Professor, Yuan Ze University R&D Advisor in Chief, the 21st Century Foundation 1. 26. 2010
  2. 2. Chronicle of the M-Taipei Initiative <ul><li>2004 </li></ul><ul><ul><li>02/11 The Taipei City Government announced the M-Taipei Initiative. </li></ul></ul><ul><ul><li>05/20 The Taipei City Government signed a contract with Hewlett-Packard Co. (HP) for its consultation. </li></ul></ul><ul><ul><li>09/07 Q-ware Co ., an affiliate of the Uni group, was tapped to build the network, and given a nine year franchise. </li></ul></ul><ul><ul><li>09/08 Q-ware Co. and the Taipei City Government co-launched the Phase I of network construction. </li></ul></ul><ul><li>2005 </li></ul><ul><ul><li>01/05 the Phase I construction completed. </li></ul></ul><ul><ul><li>02/01 Q-ware created the WIFLY brand for the WLAN service and granted free public access. </li></ul></ul><ul><ul><li>02/01 the Phase II construction began. </li></ul></ul><ul><ul><li>11/21 the Phase II construction completed. </li></ul></ul><ul><ul><li>12/20 Q-ware Co. and the Taipei City Government co-announced that Taipei was the world’s largest Wi-Fi zone . </li></ul></ul><ul><ul><li>12/22 the Wireless Broadband Oversight Committee ratified the tariffs on WIFLY services. </li></ul></ul><ul><li>2006 </li></ul><ul><ul><li>01/05 the Phase III construction was began. </li></ul></ul><ul><ul><li>01/16 Q-ware Co. began collecting low tariffs for public use of WIFLY service . </li></ul></ul><ul><ul><li>07/31 the Phase III construction completed. </li></ul></ul><ul><ul><li>09/05 Q-ware Co. and the Taipei City Government co-announced that the whole infrastructure of WIFLY was completed. </li></ul></ul>
  3. 3. Coverage of Wireless Taipei About 4,000 90% (2.32 million people) An enlarged downtown area ( 134 km² ) 2006/1/5 ︱ 2006/7/31 The Phase III 2,020 50% (1.3 million people) All remaining subway stations (a total of 63 stations). Downtown area (about 28.2 km², one-tenth of the city ). 2005/2/1 ︱ 2005/11/31 The Phase II 507 20% (520,000 people) 30 subway stations. 5 underground shopping streets. 150 m outside the subway stations. 2004/9/7 ︱ 2005/1/31 The Phase I # of APs City Population Coverage Duration
  4. 4. M-Taipei’s Uniqueness <ul><li>(1) By its completion, this project was certified as the largest public wireless local area network (PWLan) by Jiwire in 2006. </li></ul><ul><li>(2) Compared with the other PWLans at the same time, this project is the only one remaining in operation until now (since January 2005). </li></ul>
  5. 5. Public Private Partnership (PPP) <ul><li>The Taipei City Government granted Q-ware Co. the right to install APs in or on all city-owned public facilities , including highways, bridges, underground tunnels, street lamps, traffic lights, schools and so on. </li></ul><ul><li>Why did TCG adopt the “build and operate” approach in deploying the network? </li></ul><ul><ul><li>Taipei enjoys a high level of e-readiness which leads to numerous ICT business opportunities there; </li></ul></ul><ul><ul><li>The City Government could mitigate technological and market risks in the early stages of network development </li></ul></ul>
  6. 6. Policy Marketing Model K. Snavaly (1991)
  7. 7. Research Questions <ul><li>1). Whether or not the PPP’s marketing, such as the WiFly information infrastructure built-up, is different from that of the public sector? </li></ul><ul><li>2). Is it more inclined to commercial marketing or the policy one? </li></ul><ul><li>3). What is government’s role in the PPP marketing? </li></ul>
  8. 8. Research Hypotheses <ul><li>1). Government, like in the public sector marketing, is the monopoly of providing the public service and plays a predominant role in the PPP marketing. </li></ul><ul><li>2). Price will replace cost to be one of the 6P elements if the private sector is asked to self-finance the PPP project. </li></ul><ul><li>3). The marketing scheme will be more likely to be the commercial one if the PPP more inclines to privatization, and vice versa. </li></ul>
  9. 9. M-Taipei’s 6Ps <ul><li>target audience: </li></ul><ul><ul><li>internal customers: public officers; </li></ul></ul><ul><ul><li>external customers: general public, especially technology-savvy citizens. </li></ul></ul><ul><li>6P marketing tools: </li></ul><ul><ul><li>service: the not-ready (trial) service indeed causes a damage on the WiFly’s brand. </li></ul></ul><ul><ul><li>cost: the rate must be approved by the Taipei PWLan Reviewing Committee, that arouses tension between Q-ware and TCG regarding cost allocation </li></ul></ul>
  10. 10. M-Taipei’s 6Ps <ul><ul><li>Information/ educating: effective in gaining extensive coverage by both domestic and international media (such as NYT, Forbes, WSJ, BBC). </li></ul></ul><ul><ul><li>legal authority: a low level of law enforcement due to PPP and the user-paid service. </li></ul></ul><ul><ul><li>policy analysis: the RDEC in charge of the WiFly service conducted a series of policy studies on wireless network and its service application, in hopes of consolidating information policy discourse. </li></ul></ul><ul><ul><li>personnel: no full-time public employees are allocated and dedicated to this project. A greater efforts of coordination are thus necessary among the public servants. </li></ul></ul>
  11. 11. Observation & Analysis <ul><li>Among the 6P elements, service, information/ educating, policy analysis, and personnel are the mostly used means in promoting the WiFly project while cost and legal authority are seldom adopted. </li></ul><ul><li>Due to the BO tender, Q-ware must self-finance the project. It hence focuses on price instead, in order to cover the costs in providing the service. </li></ul>
  12. 12. Observation & Analysis <ul><li>1). The random and unsystematic marketing strategies; </li></ul><ul><li>2). a great deal of political benefits, such as city image marketing and Mayor’s leadership, from international press coverage; </li></ul><ul><li>3). largely influenced by the technological and the current political environments. </li></ul>
  13. 13. Analysis and Results <ul><li>Hypothesis 1 is corroborated : the TCG plays a predominant role in WiFly marketing. </li></ul><ul><li>hypothesis 2 is corroborated: price is more important than cost in marketing the PPP where the private sector is required to self-finance the service. </li></ul>
  14. 14. Observation & Analysis <ul><li>Disparities among the marketing goals and target audience: </li></ul><ul><ul><li>service: Q-ware asked for the rate tariff set at a fixed level; while the TCG intended to lower the rate on the behalf of consumers. </li></ul></ul><ul><ul><li>target audience: Q-ware intended to highlight its commercial image to attract business users, while the TCG restrains the over-exposure of commercial promotion. </li></ul></ul><ul><li> Hypothesis 3. is NOT valid. </li></ul>
  15. 15. Government directing the marketing <ul><li>The TCG’s mission of marketing the political leader’s performance; </li></ul><ul><li>the weak private partner: no enough experience in telecommunication business; </li></ul><ul><li>market uncertainty: Q-ware further cut down the marketing costs. </li></ul>
  16. 16. Conclusion <ul><li>1). Marketing the PPP based on the 6P marketing scheme; </li></ul><ul><li>2). Price will replace cost if the private partner is required to self-finance the project; </li></ul><ul><li>3). marketing the PPP may not necessarily lead to the commercial model even if the PPP is more privatized. It depends on the level of relative aggressiveness of the public and the private sectors. </li></ul>