Wireless (and Wired) Minneapolis

Last month, the Massachusetts Port Authority (Massport) ordered airlines to shut down free wireless Internet access in their frequent flier lounges. This came after for-fee access was introduced in the airport ($7.95 per day), offered by a private company under contract with Massport. Continental Airlines petitioned the FCC to rule on whether Massport’s ban violates the Over-the-Air-Reception-Devices rules, which prohibit certain restrictions on the use of antennas used to receive and transmit wireless signals.

In Business 2.0, Om Malik connects dots that begin to show a picture of Google providing free Wi-Fi access throughout the U.S. in the not-so-distant future. For the last year, the company has been quietly buying fiber optic cable to create its own coast-to-coast broadband network. In April, a wireless startup called Feeva launched a Google-sponsored, free hotspot in San Francisco. “Feeva is reportedly readying more free hotspots in California, Florida, New York, and Washington, and it's possible that Google may be involved,” writes Malik. “Feeva CEO Nitin Shah confirms that the company is working with Google but won't discuss details.”

Why would a company provide free wireless Internet access? Because it’s cheap to set up, says Malik. And because more people on-line means more advertising revenue.

Minneapolis will soon be making a major decision regarding the design, cost and ownership of a new citywide information network. What might we learn from these stories?

1. “Public-private partnerships” put the public sector entity in the position of protecting the private partner’s profits, rather than the public interest. The City could find itself in Massport’s position – denying Minneapolis residents access to free wireless in order to protect a contract with a private company.

2. Don’t count on selling something that can be offered for free. The City says a privately owned network will create a new revenue stream. It expects to get a cut from the private company’s sales to residents and businesses. Free wireless Internet access would quickly end the revenue stream, but not the City’s long-term commitment to the private network.

City offices, police, fire, libraries and schools are huge consumers of information services - more than enough to justify building a network. This demand will continue even as the market for residential and business Internet access changes. Cost savings from a publicly owned network will be passed on to police, fire, libraries and schools.

Minneapolis should own the network it needs for public safety and other municipal services.