Toronto announces wireless blanket

Submitted by acohill on Tue, 03/07/2006 - 10:43

I am not a big fan of me-too municipal wireless projects. Wireless technology remains in flux, with new equipment and systems coming online constantly. Interference and bandwidth issues have to be considered very carefully when designing these systems. And you have to know how you are going to pay for the network management and maintenance.

In other words, a community should not be planning a big wireless initiative just because "that's what they are doing in Philadelphia."

The city of Toronto has just announced a big wireless project, and they have an interesting approach to making the system pay for itself--VoIP.

The city wants to create competition for the cellular companies, and wireless VoIP could be just the thing. From a technical perspective, VoIP is clearly superior (think BetaMax). But wireless VoIP phones are not very appealing because they only work where there is a hotspot. And we want our phones to work everywhere.

So the cellular companies have an inferior voice/data combo (voice and EVDO data service) that works with an infrastructure already in place (think VHS). Wireless VoIP phones won't catch on unless they work, but how do build out the infrastructure when you don't have enough customers to pay the bills?

It's a classic chicken and egg problem.

But if local government steps in and helps with the infrastructure part, everybody wins. Suddenly, lots of people can use VoIP phones throughout the city, and competition drives voice prices down.

What would be great is if the city of Toronto allows multiple service providers to sell VoIP over the city network--that creates a win-win situation that creates jobs and opportunities in the private sector while those service providers pay small fees based on income to the city, which pays for the investment and maintenance.

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