Rodent Regatta

Wi-Fi looks like one of those technologies that will survive its own investment bubble. Though investors flocked to the technology believing there were riches for those in early, the winners have largely been those who make and sell the hardware associated with Wi-Fi. Advances continue with the technologies.

Installers make whatever they make when swapping their time for dollars. National services like Boingo, Wayport, Sprint, T-Mobile and others are largely without Wi-Fi profits.

Last week I took a look at an idea that may have some merit. Just as many rural communities get their cable television service from their local utility company, Wi-Fi appears to be another service that can be profitable there.

Here’s the way it would work:

A new venture we’ll call NewCo is set up to share in the operation and revenue associated with a Wi-Fi service. A small municipality grants access to water towers or other ”high points” for placement of access points and antennae.

Because the municipality or its utility cooperative already sends monthly bills to consumers, wi-fi can become another line item on the invoice along with water, electricity, natural gas and cable television services.

NewCo funds the capital investment on the front end, then ”shares” in the revenue by providing tech support hotlines and network maintenance services. The municipality or the local utility wins because they can offer a new service and collect a new stream of revenue with little or no capital cost up front.

The Mayor’s happy. NewCo is happy. Consumers get a broadband cloud over their community for a monthly fee that is 15% or 20% cheaper than their current DSL or cable options, and they gain mobility.