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  • From: Terri Buckner <tbuckner AT ibiblio.org>
  • To: Chapel Hill Information Technology Advisory Committee <chtechcomm AT lists.ibiblio.org>
  • Subject: [Chtechcomm] Wifi and Downtown Partnership
  • Date: Fri, 28 Oct 2005 20:13:54 -0400

Dear Committee Members,

On Monday at 7:30 am, Gregg Gerdau and Dr. Shannon Schelin from the School of Government will be making a presentation on wireless networks to the Downtown Partnership (DP). The text, provided for the DP board of directors is copied below. I've also attached a copy of the draft business survey they are recommending.

The DP meets in the Bill Cherry Board Room in the Bank of America Center (Downtown) Downstairs. Parking is available in the Wallace Deck off Rosemary Street. Enter the back door of the Bank of America building and the Board room is just to the right once you enter the building.

This will be the second full item on their agenda:

Full agenda available at:
http://townhall.townofchapelhill.org/ABC/agendas/dpagenda.htm


MUNICIPAL WIRELESS NETWORKS: AN OVERVIEW

Description:
Wireless Internet Connectivity (Wi-Fi) is a technology that enables broadband Internet access via unlicensed spectrum in the 2.4 GHz and 5 GHz bands. Often Wi-Fi is called 802.11a/b/g/n, which are engineering terms that differentiate speed and location on the spectrum. For example, 802.11a is the slowest connection, while 802.11g is a newer, faster release.

In order to deploy Wi-Fi, you must have a transmitter base connected to a wired network. This transmitter will project a wireless signal approximately 300 feet (radius). Accessing the wireless network is achieved through the use of wireless network cards added or integrated into computers and other devices. Depending upon the number of users on a network, Wi-Fi can offer transmission speeds of 54 Mbps (megabytes per second). Many local establishments, such as coffee shops, restaurants, hair salons, and the University, offer wireless access points (known as “hotspots”) for customer use. Some establishments charge for this access, as is found in many Starbucks Coffee Houses, while others offer free wireless connectivity.

The demand for wireless access is growing at an exponential rate. In the past year, no fewer than 15 North Carolina local governments have begun exploring municipal wireless networks. Most recently, the town of Clayton (see attachment A) has committed to deploying a small wireless footprint in their downtown, while assessing the feasibility of town-wide deployment. Furthermore, the number of Wi-Fi hotspots (worldwide) is estimated to grown from 43,850 in 2003 to more than 200,000 by 2008 (In-Stat/MDR, October 2004). This predicted growth rate and the entrance of local governments into the wireless market provides for opportunities for action on behalf of citizens, as well as interesting legislative involvement.

Drivers:
Significant research has been conducted on the economic, social, and political drivers of the municipal wireless movement. The most cited reasons include: economic development, educational and occupational opportunities, regional and global competitiveness, rural integration, urban revitalization, affordable modern health care, transportation enhancement, environmental enhancement, and quality of life issues. Furthermore, many proponents of municipal wireless networks believe that the private sector has failed in the wireless market, due to the economic constraints, consolidation, lack of responsiveness, continually rising rates, poor customer service, and inadequate offerings in many locations, particularly rural areas.

Challenges:
There are many challenges associated with the provision of municipal wireless networks. First and foremost are the legislative challenges, including bills currently being discussed in the US Congress. Currently, the Telecommunications Act of 1996 authorizes preemption of state and local laws and regulations “that prohibit or have the effect of prohibiting the ability of any entity” to provide telecommunications services. (47 U. S. C. §253). The FCC ruled that “any entity” provision in §253 does not include state political subdivisions. But the 8th Circuit Appeals Court unanimously reversed the FCC’s decision. Furthermore, state authority and local authority must be granted to allow public entrance into the communications market.
One case of particular interest with respect to the municipal provision of broadband service is Bellsouth Telecommunications v. City of Laurinburg and School Link. This case clarifies NC law regarding municipal ownership and operation of a fiber-optic network. In 2002, Laurinburg was sued by BellSouth for violating state law by selling excess capacity on its fiber-optic network through ISP, School Link– Scotland County government, county schools, Scotland Memorial Hospital, and St. Andrews Presbyterian College. The BellSouth argument was that this service is not one that cities are specifically authorized to provide and therefore prohibited. In 2003, a trial judge granted summary judgment to Laurinburg, ruling that it was within its statutory authority to enter into agreement with School Link and let others use their network without explicit NC General Assembly authorization. In 2005, the North Carolina Court of Appeals unanimously affirmed the decision, rejecting BellSouth’s appeal and ruling that the city’s operation of a fiber optic network fell within its authority to operate a “cable TV system” under the public enterprise statutes.

The bases of the NC Court of Appeals include: 1. Broad standard of construction of G.S. 160A and city charters (as directed by the GA in G.S. 160A-4); 2. “the provisions of Chapter 160A and of city charters shall be broadly construed and that grants of power shall be construed to include any additional and supplementary powers that are reasonably necessary or expedient to carry them into execution and effect.” Homebuilders Assn. of Charlotte v. City of Charlotte, 336 N.C. 37, 41-42, 442 S.E.2d 45, 49 (1994); 3. Laurinburg’s fiber optics network is a “cable television system” (CTS) authorized to be owned and operated by a city as a public enterprise by G.S. 160A-311(7); 4. “cable television system” means any system or facility that, by means of a master antenna and wires or cables, or by wires or cables alone, receives, amplifies, modifies, transmits, or distributes any television, radio, or electronic signal, audio or video or both, to subscribing members of the public for compensation (N.C.Gen. Stat. § 160A-319(b)); and, 5. “ . . . the legislature’s intent in 1971 was to enable the municipality’s public enterprise to grow in reasonable stride with technological advancements, as it is this advancement which marks the ever-approaching horizon of necessity.” Bellsouth Telecommunications v. City of Laurinburg and School Link, COA04-145

The outcome of this case expressly allows the provision of such service, defined as part of the cable franchise.

Options:
There are several options for the provision of municipal wireless networks. The first option is for the local government to offer the service as a utility, similar to water and sewer services. This option requires the design, deployment, and maintenance of the infrastructure by the Town or via a public-private partnership. • Other jurisdictions have established separate boards, authorities, and commissions to handle the oversight of municipal wireless networks. Multi-government interlocal projects are also common between counties and cities, or neighboring cities.

Another option is to develop a non-profit organization to manage the effort, as was established in Philadelphia. Other public-private partnerships include owning and/or leasing the facilities and offer retail ISP services; owing and/or leasing the facilities and offering wholesaling capacities to private sector firms, as is being attempted in Philadelphia PA. A common option is to own and/or lease facilities and then provide restricted access to the network. A final popular model, that attempts to address digital divide issues, is to lease the right of way, offer municipal services in addition to retail offerings.

Other Considerations:
As the Town begins to explore municipal wireless options, some specific considerations should be given to properly identifying and estimating initial costs and on-going maintenance; vigilance to ongoing state and federal legislation; governance issues related to the deployment of such a service; a viable alternatives analysis of the types of available technology (Wi-Fi, Wi-Max, FTTH); and, the significant security requirements, and subsequently implications, of the provision of such a service.

Finally, a new trend is emerging with universities and the provision of wireless networks. If a market study indicates that students are the major clients of downtown establishments, then a partnership with the University should be encouraged. For example, Arizona State is expanding their wireless cloud to include the major retail section of town, in order to provide greater customer service to students. This model requires additional security and access controls at the University level, but technologies are readily available to achieve the requisite level of control.

****************************************************


The News and Observer, September 26, 2005

Clayton's wish for free Wi-Fi: 'Set us apart'

By PEGGY LIM, Staff Writer

CLAYTON -- Hidden atop a shelf with jars of "Jamaican Me Crazy" and "Irish Cream" coffee beans, a small blue-and-black box soundlessly transmits wireless Internet to customers at a Clayton cafe.

"It's a necessity of a coffee shop of the 21st century," said Jodi Sager, owner of The Coffee Mill, which added the perk about six months ago.

Some Clayton officials want to go a giant step further and blanket the town with free or low-cost wireless Internet access points. That way, anyone with a wireless-enabled laptop or computer could go online practically anywhere in town.

"It's really going to set us apart," Town Councilman Alex Harding said.

As major companies race to roll out paid-for wireless broadband services across the country, municipalities such as Clayton are talking about extending Wi-Fi service at no, or low cost, to all residents. Some cities, such as Raleigh, Apex and Winston-Salem, already offer wireless Internet in sections of their downtown, but few provide the service citywide.

This year, Clayton plans to bring wireless to town buildings, community parks and a public square at a cost of about $10,000. If Town Council members support it and Congress doesn't pass legislation barring municipal wireless, Clayton could begin installing other wireless access points elsewhere in town as early as next year.
This summer, U.S. Rep. Pete Sessions, a Texas Republican and former employee of telecom giant SBC, introduced a bill to prohibit state and local governments from offering Internet service if a private provider already does. The likes of Verizon, SBC and Comcast lobbied Congress and states such as Florida, Tennessee, and Illinois to prohibit municipalities from providing information services.

Other proposed legislation floating in Congress supports municipal broadband.
Major telecom and cable companies "look at us as a competitor," said Angela Tousey, Clayton information services administrator. "We look at it as providing services to our citizens that may not be able to afford that $40-a-month bill."

Clayton, a Johnston County town of about 12,000 people, may follow the model of pioneering towns such as Manteo on the Outer Banks. Manteo, where the population of 1,300 doubles during summer months, saw wireless service as another amenity to draw tourists.

Partnering with cable company Charter, Manteo is installing wireless hot spots across town, which will give users free Internet access in 30-minute increments. The intent is to give people enough time to check e-mail or surf the Net, but prevent them from abusing the system and hogging bandwidth, for example, by downloading songs off Napster. Those who want unlimited access would have to subscribe with Charter for a monthly fee.

Larger cities, such as Philadelphia, Portland, Ore., and Taipei, Taiwan, are also attempting to provide free or inexpensive wireless services to increase their attractiveness and reduce the divide between those with Internet access and those without.
Wireless could be very expensive for a municipality to provide on its own. Michael Bavaro, CEO of the Clayton-based Internet provider Dockpoint, thinks towns should partner with local companies so they don't duplicate existing infrastructure and interfere with other wireless Internet systems.

Towns have a hard enough time keeping up with power, roads and other utilities, Bavaro said. "They want to stick their finger in another pie?"

He acknowledged partnering with local governments could also benefit wireless Internet providers.

Unlike cellphones, the Wi-Fi technology Dockpoint and many other companies use requires line-of-sight transmissions. That means if a tree branch blocks a signal between a transmission point and a building's receiving antenna, the building could lose its Internet connection. Height helps.

In North Carolina, local governments have put moratoriums on new transmission towers, and cellular phone companies are possessive of their infrastructure, Bavaro said. Local governments, however, own lots of tall buildings, water towers, power lines, light poles and telephone poles, which could serve as transmission points.

Emerging technologies could make it less appealing for private companies to work with local governments, though. WiMax, a technology to which Wi-Fi companies expect to migrate, can send out signals in a radius of up to 31 miles, as opposed to up to 10 miles with current Wi-Fi technologies. The increased coverage area might make it less necessary to partner with local governments for tall transmission points.

Clayton resident Patrick Tombrey, 39, said he'd welcome town-sponsored wireless hot spots. A director for global accounts at a Massachusetts-based software company, Tombrey totes his cellphone, Blackberry personal digital assistant and laptop to The Coffee Mill whenever the digital subscriber line at his Glen Laurel home inexplicably shuts down. Municipal wireless would make it that much more convenient to use Internet around town.

"How can anyone argue that not being a good thing?" he said.
Researcher Denise Jones contributed to this report.

Staff writer Peggy Lim can be reached at 836-5799 or plim AT newsobserver.com.
Researcher Denise Jones contributed to this report.







Attachment: downtown wireless business survey.doc
Description: MS-Word document



  • [Chtechcomm] Wifi and Downtown Partnership, Terri Buckner, 10/28/2005

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