Thanks for providing a forum for discussion about Midwest Fiber’s role in making Milwaukee a wireless city. Your blog posted January 17 entitled “Is Milwaukee’s Wi-Fi Agreement a Bad Deal?” poses questions that merit answering.
There is no shortage of misunderstanding about public projects, especially one proposing to build a citywide wireless network “without” tax payer financing. The following, we believe, address your characterizations and questions contained in your “bad deal” blog.
While the proposal sets no limits on what we charge for access to the network by service providers, free-market forces will not allow for a huge run up in end-user fees. Through the wireless network we will add internet service providers to the Milwaukee market-which currently is a limited access market without much competition. More competition translates to downward price pressure and improved service standards as all service providers compete for subscriber business.
A formal competitive bid process was not established because the city has stipulated that any company is welcome to make proposals to build a wireless network. Furthermore, the city is not purchasing a service, rather granting access to infrastructure on which to build the network. While some cities have formalized the proposal process, Midwest Fiber Networks’ proposal provides far more benefits than those being considered in other cities. Some of the highlights follow.
Midwest Fiber Networks will finance the construction of the wireless network estimated at $20 million. Other cities are being required to provide public financing to build the wireless network infrastructure.
Midwest Fiber Networks will pay the city 1 to 3 percent of gross revenues for use of its underground conduit system. Therefore, access to the entire 550 miles of conduit is not being given for “no charge” as written in the “bad deal” blog. Nor is it even necessary to access the entire system to complete the wireless network. When you consider all the value obtained by the city through its diligent negotiations, concerns over whether full consideration has been given to the value of accessing the conduit system seem well covered. Midwest Fiber will continue to pay for use of the conduit system it already occupies, as well as pay for new access to light poles and other aerial structures.
Midwest Fiber Networks will establish a job training program and make good faith efforts to ensure city residents comprise 25 percent of the expanded workforce needed to build the network.
Midwest Fiber Networks will provide the city with 400 free Internet accounts and 60 Web sites with free access to any user (government, non-profit, academic, etc.)
Midwest Fiber Networks will make an immediate payment of $150,000 into a fund to expand access to computers in low-income areas. The agreement also calls for Midwest Fiber Networks and the city to work with equipment manufacturers and nonprofit groups as a means to bringing affordable network access to all residents.
Midwest Fiber Networks will provide service across all of Milwaukee-not just high-income areas, which has been the case in some cities-and deliver access to areas of the city that currently lack strong broadband coverage.
For more answers to frequently asked questions about the city’s wireless initiative, visit www.midwestfibernetworks.com for specific terms of the wireless agreement.
Donna Raffaelli is a principal with Midwest Fiber Networks, LLC-a Milwaukee-based, woman-owned enterprise founded in 2001.
