Municipal Wireless: Threat to Venue Networks?

By Margo McCall -- Tradeshow Week, 5/8/2006

Just as convention centers are beginning to recoup their investment in wireless networks, along comes a potential threat that could make those systems obsolete.

Nearly 200 U.S. cities are considering, constructing or have already built free or low-cost Wi-Fi networks, according to MuniWireless.com, a site tracking municipal wireless deployments. And that has some venue operators worried.

Convention centers lost a big chunk of their revenue when exhibitors and attendees started switching from landlines to mobile phones several years back. The wireless networks installed at many large venues were intended to help make up for some of that lost revenue. But now, with free and low-cost municipal Wi-Fi systems popping up, the replacement income could end up being lost too.

Thomas Connors, senior regional vice president of convention centers for facility manager SMG, said the abundance of free municipal networks could result in attendees expecting the same levels of service within convention centers.

"I believe convention centers will be expected to provide public access to the Internet in public areas, or designated hotspots, as a baseline service in the future," he said.

While the free model could eventually compete against paid venue wireless, David Langford, vice president of technology for SmartCity Networks, doesn't see that happening yet.

"It's something we're watching, but at this point it's not competitive," he said. "I think they're probably complementary right now."

So far, the citywide networks are more popular in smaller municipalities. Cupertino, Calif., launched its $15-per-month municipal service last May, and nearby Sunnyvale followed in December with a free system supported by advertising. Tempe, Ariz., in February deployed its 40-square-mile wireless mesh network, available to residents for $30 per month. And in March, the Orlando suburb of St. Cloud, Fla., went live with its 15-square-mile Cyber Spot system.

Although none of those communities have convention centers, plenty of cities considering municipal wireless do. Philadelphia, home to the Pennsylvania Convention Center — a pioneer in venue Wi-Fi networks — in March signed up Internet service provider EarthLink to construct what the city is billing as the country's biggest Wi-Fi hotspot. EarthLink plans to install access points on 4,000 city light poles and charge residents up to $20 per month for access.

Anaheim, home to the wireless-equipped Anaheim Convention Center, is also using EarthLink to build a municipal wireless network. The city is the country's sixth-largest host of large tradeshows, according to the most recent Tradeshow Week 200.

And in San Francisco, the country's eighth-largest host of large tradeshows, EarthLink and Google are teaming up to develop a $15 million wireless network with a two-tiered pricing system.

Meanwhile, Moscone Center's wireless network is barely a year old. The venue uses a typical pricing model, allowing show managers to sponsor free access for attendees, or requiring attendees to pay an hourly or daily rate. Exhibitors can also obtain access, usually for a higher fee.

Julie Burford, Moscone's assistant general manager, said it's still uncertain whether the municipal system will render the venue system obsolete. "I think it's a giant question mark," she said, adding that Moscone "made a significant investment in the infrastructure" for its wireless network.

Venue officials, however, suspect that their convention centers' thick concrete walls will be difficult for municipal systems' radio waves to penetrate.

At the very least, because it is 37 feet below ground, Moscone's exhibit floor will probably be out of the municipal system's range.

Sacramento (Calif.) Convention Center General Manager Judy Goldbar is also betting on thick concrete to keep the municipal wireless network at bay. "We have so much concrete that we don't feel it will be a conflict at all," she said.

But at the Santa Clara (Calif.) Convention Center, General Manager Don Riccardi isn't taking any chances. He wants to make sure that his venue will still be able to generate revenue from its 3-year-old wireless network once his city's municipal network comes online.

"We're discussing with the city the ramifications of the citywide network. We're exploring the options of having the citywide not be available within the convention center," he said.

The venue's wireless network, installed by SmartCity at a cost of nearly $100,000, now generates 200 user sessions per month. "We see it as providing a service," said Riccardi.

And although municipal systems are sprouting everywhere, so are complaints about their lack of coverage. Orlando, for instance, last year shut down its downtown wireless network due to a lack of interest.