A lot of people are now scratching their heads trying to figure out why Cablevision would in the space of two days announce that they were going to invest $350 million to build out Wi-Fi on their current footprint, then buy up Newsday for $650 million.    Having recently been thwarted in their effort to take the company private, the Dolans aren't offering to clarify the rationales behind their moves.

As a long time Knick fan, I have questioned a lot of moves they have made.   Hiring D'Antoni and Donnie Walsh at least indicates that like another autocratic team owner in NYC, the Dolans are capable of making good decisions after bad ones.

Looking first at the Wi-Fi announcement, you could say it was a countermeasure/response to the much larger announcement May 7th of  the formation of a $12 billion consortium consisting of Sprint Nextel, Google, Intel, Comcast, Time Warner and Clearwire that would build a nationwide wireless network.   But that will use licensed spectrum.   But Cablevision proposes a Wi-Fi network.   Every large scale Wi-Fi deployment has so far ended in tears, mostly given the limitations of the spectrum and how it is regulated.   More ominously, their CTO claims they will use a mesh topology and support VOIP.  That hasn't happened yet either -- too much latency given all the hops.  Never say never, though.  They could be the first, and they could have in their sights a solution that will be able to address the technical limitations we have all encountered so far. 

The Newsday deal also has people guessing and second guessing.   Why pay so much for a newspaper?   Certainly you can leverage the ad sales force that Newsday has to sell online ads.  Cablevision is a Long Island based business, and Newsday is a Long Island paper.  That has to offer some synergies.   Newsday's 300,000 subscribers are now customers Cablevision can reach, which is important if Cablevision is going to get more subscribers and sell new services to existing ones.

But what if the Wi-Fi plan and the Newsday purchase became part of the same undertaking?   Every newspaper these days wants to get very local.   Every megaportal wants to capture the local ad market.   Wi-Fi on Cablevision's footprint means a delivery system for hyperlocal content and ads.

Watch the Knicks play run and gun now.   Maybe, watch Cablevision run away with a nice little coup, but if and only if they don't get tripped up like so many have, by expecting too much of Wi-Fi.   It, like Zach Randolph, can only do so much. 

For Immediate Release:

Altai Technologies' WiFi Base Station

and Smart Antenna Deployed by WiFi Salon in World Famous Park

Hong Kong, Nov 28, 2007 -WiFi Salon, which runs the parkwifi network via a concession from The New York City Department of Parks and Recreation, has chosen Altai Technologies' A8 WiFi base station to upgrade Washington Square Park.

"We've been using the Altai A8 for special events in Columbus Circle, Union Square, and Washington Square over the last year, and the performance has been outstanding," said WiFi Salon's CTO Marcos Lara. "For congested RF environments there is no better solution in the market" commented WiFi Salon CEO Marshall Brown, "We were eager to deploy the Altai on the parkwifi network because it is best-of-breed. Our goal is to have Washington Square Park become the showcase for how public WiFi can be in New York."

Nice to have an interesting contrarian position. Craig Mattias looks at the current bad news on muniwireless — read Earthlink — and takes the long view. WiFi will come because there is no other alternative. WiFi will come to complement the cellular network because WiFi is just better at delivering local wireless broadband, and is a global standard.

What could well happen, especially in an urban environment, is that public WiFi will become the victim of WiFi’s over all success. At Union Square, NYC for instance, where we have one of our parkwifi locations, WiFi Salon has detected 215 other nearby networks. They interfere with our coverage, and affect our QoS, and of course interfere with each other. This is open spectrum, so that’s the way it goes.

Advances in technology will increase performance/QoS, but there are real limitations when it comes to RF interference.

Covad has been great. New York City is a challenge, the parks are an even greater challenge, but we got it done. We got working DSL into 17 park locations and ADSL2+ into Columbus Circle, The Sheep Meadow, Washington Square Park, Summerstage, with Union Square pending and other locations also upgradable.

What does that mean for the user? Free high speed WiFi, with the capacity to support multimedia and a good number of simultaneous users. ADSL2+ tripled our capacity. Visit any of our free WiFi Hot Spots here.

Here is the rest of the press release, also available as a google search here.

, Wayport Among Providers That Rely on Covad's T1 and DSL to Connect Hotspots in Airports, Parks, and Other Public Areas

Here's something from the NYT opinion page on the announcement that ePath has been selected to provide Wi-Fi to L.I.

The editorial makes no mention of the fact that first ePath has to raise $150 million in capital. One wonders what the market is for venture capital for muniWiFi deployments given Earthlink's travails. Keyspan Energy, their backhaul partner (they will provide fiber) could well back them. The other partner, Cisco, has at least the gear. Perhaps with the $150 million, once they get it, they will be able to cover a projected 750 square miles, which would come out to 200K a square mile.

Here we go again, this time from Newsweek. We have been hit with the collective realization that for-pay citywide WiFi networks are not getting nearly enough subscribers to support the costs, and that QoS issues when covering large geographic areas and going in doors are driving up costs and undermining the value proposition.

In what seems to fly in the face of the new conventional wisdom post Earthlink's travails that large scale muni wireless deployments are dead, a franchise to build a muni-WiFi network over Nassau and Suffolk Counties was awarded to "newcomer" ePath to provide WiFi service.

You can read the Times article here.

ePath has an infrastructure partner in Cisco, and a fiber backhaul provider in Keyspan Energy, so they come to the table with something. All they need to do now is to raise $150 million dollars to build the network. Nassau / Suffolk will not be providing any funds or committing to purchase any services from ePath. It is all upon them to find the backers willing to take the risk.

The Wall Street Journal story is here.

As a purveyor of a WiFi Hot Spot network in 17 locations in ten NYC parks in 4 boroughs, WiFi Salon can well attest to the problem that leaves present in terms of providing reliable coverage.

In winter time coverage in Central Park at our eight locations was better than it is now. The two wireless bridges we installed in the Fall between two of our Central Park locations were shut down by the leaf heavy branches of spring and had to be repositioned.

We do very well in open fields, like Sheep Meadow and the Southern part of The Great Lawn, but have a significantly smaller coverage area around The Dairy Visitor’s Center, which is very much among the trees.

The reason leaves are a problem is because there is water in them. Likewise, heavy rains will have an effect on the signal. Of course if you are in a park in the heavy rain, you may not be opening up your laptop, or any WiFi enabled device.

So as the article details, partly because of the leaf problem, USI Wireless has had a tough go of it deploying a muniWiFi network. The Minneapolis network did, as the article omits, help to communicate details of the bridge collapse to the outside world through webcams during the time especially when the cell network was overburdened.

Tom Evslin, an expert on wireless and internet technologies, has a wonderful post on his blog Fractals of Change on what the two month old WiFi network was able to deliver as a communications system after the disaster. It says much about the value of a public WiFi network, how it can be quickly and effectively repurposed in case of disaster because it is open and not centrally managed.

Still, if you want an emergency communications system, you can’t let leaves intervene. You also don’t want spotty coverage, another problem that dogs citywide deployment plans, and which again is very much a function of the real spectrum and power limitations with WiFi.

For those contemplating or in the midst of a citywide deployment — Google, Earthlink — these performance issues undermine whatever business model may be contemplated by increasing costs in network infrastructure, by limiting service offerings, and by not meeting user expectations.

You can try every engineering trick in the book to improve coverage, quality, within the bounds set by the FCC on the 2.4GHz open spectrum, and it is amazing what can be done.

At the end of the day, though, expectations need to be reset around what WiFi does best. It is so tempting for a city to announce a MuniWiFi plan, put out an RFP. WiFi, though, should not be deployed as though it were the cell network, as though it would provide universal and mobile coverage indoors and out. If you pick your spots — where people gather, in business districts, in key municipal locations, you can put together a network of local portals that people will gravitate to when seeking to connect with their community, local government, and with localized rich media content.

Build community wells full of location specific info and services instead of trying to provide indoor plumbing to everyone. All WiFi is local.

Eric Jackson, the new CIO of Hartford cited in the WSJ article, has it right in our view:

Mr. Jackson sees the creation of a city Web portal for services and content that can be used to generate a return on their investment. ….”That’s where I think the real money is in terms of value,” he said. “It’s content, not transport.”

So yes, new models are needed, but we know what is not working now at least, and so that is causing us to function on what can be delivered, and where, and what. Keep it local, in short. As with the Internet — another open platform that fosters innovation — new uses for public WiFi will spring up spontaneously, in surprising and even lucrative ways. WiFi should be the Internet localized, a wireless intranet for a community. What will happen when the main social and economic spaces in our towns and cities are awash in wireless broadband? How will people use this ‘creative commons?’ As people begin to own and depend on their WiFi enabled devices more, the need for public WiFi will continue to grow and new revenue streams will emerge as more attention is paid to content and services, and the platform begins to be understood for what it is.

New York City is the Media Capital of the World. Its destiny is to become the wireless digital media capital of the world.

What this town needs right now is a public space that is awash in broadband WiFi. Lincoln Center Plaza now has WiFi. Imagine what the world’s largest performing arts center will now do with WiFi in their plaza.

Our parkwifi Hot Spots are being all outfitted with ADSL2+ to handle the demands of public wireless multimedia.

With such capacity, our locations will be venues where leading edge wireless digital arts and cultural content can be broadcast, and new immersive wireless experiences can be staged.

WiFi Salon believes there should be venues i.e. Salons where NYC’s arts and cultural community can present to the public and where technology and media companies can offer what a wireless world will look like.

Bob Frankston is someone I have gotten to know a bit via The Cook Report as an expert on information technology policy. Here, he argues that:

1. Muni Wireless should not be about trying to create yet another network.

2. There is enough infrastructure out there to provide communities with broadband as a shared resource.

3. Creating such shared environments is a software fix — think FON where your wireless router is opened up securely for the use of others while your traffic is secured.

4. It should not look to become the cure all for everything — in some cases, wired solutions will be superior.

5. We should not overburden MuniWiFi with grand expectations and requirements. Let’s be modest, and keep the commitments low. Grand projects are both expensive and unrealistic in terms of expectations on performance, service delivery.

Now I am very sympathetic to this argument. MuniWiFi should be thought of as local, grass roots, as an aggregation and sharing of available resources.

You have your Boingos and your FONs — companies that seek to aggregate routers. Anyone who has ever opened a laptop in a city will see many WiFi networks in the vicinity, some open, some secure. Here is a map of available WiFi networks in NYC created by my CTO Marcos Lara via The Public Internet Project in 2002:

As you can see, even in 2002 there were a lot of networks, but how to get people to share?

How do you incent people to share their bandwidth, and do it securely — of course without running afoul of the local telecoms?

Our vote is to work with BIDs, (Business Improvement Districts), Chambers of Commerce and community groups so that they understand the virtue of creating a common resource in key areas in the community. The collection of access points could be fashioned into a single platform via common interfaces (local portals), router firmware, and backend management, with the need to augment the existing patchwork with new access points.

The solution is not just wireless, as Bob states, but would involve a mix of wired connectivity options as well. Having ADSL2+ lines from Covad, for instance, as strategic backhaul for local WiFi Hot Zones, would for WiFi Salon be a part of the solution —so long as they are amenable to shared connections.