[LUAU] Wireless in Honolulu

[Maddog]

That was my point. I argued in the last go around that it was doubtful that 
companies could offer truly free Wi-Fi because of the cost of bandwidth and 
Wi-Fi equipment. Jim shot a 30 odd six at me telling me I knew nothing of 
Wi-Fi, bandwidth or the cost of equipment. With the release of articles this 
week outlining the fact the Earthlink spent $5.5 million to roll out Philly 
and $10 Million to roll out Anaheim. You cannot pay for that sort of capital 
outlay by having FREE Internet access.

Free meaning no pay. Free does not mean that it is subsidized by ads. My 
point in the last go around was that someone has to pay somewhere. Ad 
supported means that advertisers will pay up front and eventually they will 
have to see a return. If they do not Free goes away. That is why you see 
hybrid models because even the Earthlinks realize that ad revenue won't be 
enough to support the huge capital outlays it takes to set up a metro Wi-Fi 
network. Just in Anaheim they don't even expect to see "meaningful results" 
(whatever that means) until 2009. That doesn't even say break even.

I am just going to have to rest on this side of this debate until I see 
something "meaningful" in Waikiki. There are way to many hands to feed to 
deploy FREE Wi-Fi (anything bigger than a few blocks near the zoo) in 
Waikiki and to be successful. Every hotelier there thinks that if one of 
their guests buys something while logged onto your network, you owe them a 
cut. Once Shakanet starts to see ad revenue this will be the proverbial 
brick wall they will need to hurdle.

MD
----- Original Message ----- 
From: "Julian Yap" <julian_yap at yahoo.com>
To: "LUAU" <luau at lists.hosef.org>
Sent: Saturday, July 01, 2006 1:07 PM
Subject: Re: [LUAU] Wireless in Honolulu


> --- Maddog <maddog at heavymetalradio.net> wrote:
>> This is a business model. As long as the hotels are densly
>> covering Waikiki
>> this model is going to require shakanet or whoever else to
>> determine where
>> something was bought and to contribute a share to the hotels.
>> I'd like to
>> see truly free, not ad supported, wireless everywhere. It just
>> is going to
>> be tough to do it here. I will keep my eyes on the project but
>> I won't be
>> surprised if it is not seen through to fruition.
>
> Maddog,
>
> I'm not sure what you mean.  Or what free model you would
> propose that would cover all your bases and be considered free
> in your eyes?
>
> ~ Julian
>
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