Many of the installments of our ongoing ”Problems in Public Utility Paradise” series here at the TLF have discussed the multiple municipal wi-fi failures of the past few years. Six or so years ago, there was quixotic euphoria out there regarding the prospects for muni wi-fi in numerous cities across America — which was egged on by a cabal of utopian public policy advocates and wireless networking firms eager for a bite of a government service contract.  A veritable ‘if-you-build-it-they-will-come’ mentality motivated the movement as any suggestion that the model didn’t have legs was treated as heresy.  Indeed, as I noted here before, when I wrote a white paper back in 2005 entitled “Risky Business: Philadelphia’s Plan for Providing Wi-Fi Service,” and kicked it off with the following question: “Should taxpayers finance government entry into an increasingly competitive, but technologically volatile, business market?,” I received a shocking amount of vitriolic hate mail for such a nerdy subject.  But facts are pesky things and the experiment with muni wi-fi has proven to be even worse than many of us predicted back then.

A new piece by Christopher Mims over at MIT’s Technology Review (“Where’s All the Free Wi-Fi We Were Promised?“) notes that “no technology happens in a vacuum, and where the laws of the land abut the laws of nature, physics will carve your best-laid plans into a heap of sundered limbs every time.” He continues, “the failure of municipal WiFi is an object lesson in the dangers of techno-utopianism. It’s a failure of intuition — the sort of mistake we make when we want something to be right.”  Too true.  Mims was inspired to pen his essay after reading a new paper, “A Postmortem Look at Citywide WiFi“, by Eric M. Fraser, the Executive Director for Research at the Committee on Capital Markets Regulation.  “Almost everyone was fooled by the promise of citywide WiFi,” Fraser notes, because of the promise of a “wireless fantasy land” that would almost magically spread cheap broadband to the masses.  But, for a variety of reasons — most of which are technical in nature — muni wifi failed.  Fraser summarizes as follows:

WiFi cannot deliver a citywide network because technical and regulatory limitations combine to require access points at least every few hundred feet outside and even closer together indoors. Mounting that many access points is generally too expensive and is nearly impossible inside private buildings. WiFi deployments require high-touch, high-density installations. Meanwhile, users often have WiFi access in homes, at work, at coffee shops, in hotels and airports, and in select government buildings. For users who require wireless access outside those areas, private cellular companies offer high-speed 3G wireless data networks using technologies better suited for widespread coverage (because of not only technical differences but also regulatory differences). As a result, the major public WiFi projects were destined for failure and municipalities instead should devote resources to small, focused networks.

Policy makers would be wise to remember the lessons of this experiment next time regulatory activists groups come knocking on their doors with more grandiose “public utility” or even “public media” schemes.  The recent experiment with muni wi-fi again points to the failure of the top-down driven model of planning complex networks and the risks inherent in letting government gamble taxpayer dollars on these risky bets.

Congressmen working on national intelligence and homeland security either don’t know how to secure their own home Wi-Fi networks (it’s easy!) or don’t understand why they should bother. If you live outside the Beltway, you might think the response to this problem would be to redouble efforts to educate everyone about the importance of personal responsibility for data security, starting with Congressmen and their staffs. But of course those who live inside the Beltway know that the solution isn’t education or self-help but… you guessed it… to excoriate Google for spying on members of Congress (and bigger government, of course)!

Consumer Watchdog (which doesn’t actually claim any consumers as members) held a press conference this morning about their latest anti-Google stunt, announced last night on their “Inside Google” blog: CWD drove by five Congressmen’s houses in the DC area last week looking for unencrypted Wi-Fi networks. At Jane Harman’s (D-CA) home, they found two unencrypted networks named “Harmanmbr” and “harmantheater” that suggest the networks are Harman’s. So they sent Harman a letter demanding that she hold hearings on Google’s collection of Wi-Fi data, charging Google with “WiSpying.” This is a classic technopanic and the most craven, cynical kind of tech politics—dressed in the “consumer” mantle.

The Wi-Fi/Street View Controversy

Rewind to mid-May, when Google voluntarily disclosed that the cars it used to build a photographic library of what’s visible from public streets for Google Maps Street View had been unintentionally collecting small amounts of information from unencrypted Wi-Fi hotspots like Harman’s. These hotspots can be accessed by anyone who might drive or walk by with a Wi-Fi device—thus potentially exposing data sent over those networks between, say, a laptop in the kitchen, and the wireless router plugged into the cable modem.

Google’s Street View allows you to virtually walk down any public street and check out the neighborhood—making it easier to navigate to your intended destination, explore a neighborhood you might be thinking of moving to from out of town, point out potential maintenance or streetscape problems to your city, and any number of other wonderfully useful, totally benign things that you could do anyway if you just walked down the street with a camera or a notepad! CWD’s letter tries to outrage Harman by telling her: “Your home is on display for the entire Internet with just a few clicks of a computer mouse.” So what? It’s on display to anyone walking or driving down the street, too! If you don’t like that, put up a fence or landscaping to block the view—or move out of the suburbs to a more remote location!

The Street View cars that take these photos from cameras on their roofs were also equipped with Wi-Fi devices that, much like any Wi-Fi device, look for Wi-Fi hotspots within range. (Just look for “available networks” the next time you’re at a laptop and you’ll see what I mean). This isn’t part of some evil Google conspiracy to “track consumers in their homes,” as CWD alleges. Rather, building a map of wireless hotspots allows any consumer using, say, Google Maps to determine their location more accurately and quickly than would otherwise be possible: If my phone sees 6 hotspots nearby and Google can correlate that data with the pre-existing map of Wi-Fi networks generated by Street View cars, this helps Google Maps pinpoint my location—which make directions and other location-based services work better for me in the future.

But the Street View Wi-Fi software was accidentally misconfigured to capture all wireless data packets (chunks of data) they picked up as Street View cars drove by hotspots, regardless of whether those packets are data packets (potentially containing data sent by users over their home networks) or “beacon” packets that simply announce the presence of a network, and regardless of whether the packets were sent from an unsecured or secured network. The software was designed to discard any data packets from encrypted networks, but not from unsecured networks. Google claims this was an accident, and some security experts agree. Google has promised dispose of all of the data accidentally collected (beyond SSID names).

In early June, Google commissioned an independent analysis, which confirmed that the Wi-Fi software “does not analyze or parse the body of Data frames, which contain user content” and that such data frame bodies would be stored only if sent over an unencrypted wireless network but discarded if sent over an encrypted network. Translation: Google didn’t use any of the packet data it collected.

Some have suggested that Google  should have collected only the network naems (“SSIDs”) from the beacon packets, or perhaps no Wi-Fi data at all. But as cyber-security consultant Robert Graham explained in detail shortly after this story first broke, building an accurate network map with fast-moving vehicles requires collecting as many packets as possible. Again, the better the map, the greater the accuracy of Google’s location-based services for consumers.

Bottom line: Google made a mistake in failing to discard user data after collection but otherwise had good pro-consumer reasons for what it was doing. But why let the facts get in the way of a good PR hit-job? CWD just did essentially the same thing Google’s Street View cars did, driving by Harman’s house to look for unencrypted hotspots. But they went a step further, actually publishing the names of two networks at Harman’s home. If any company had published network names tied to street addresses, privacy advocates would have thrown a fit. But when Consumer Watchdog actually publishes such information… hey, it’s an expose!

And if you were wondering where Rep. Harman lives, you could start by looking her up in publicly available databases, like the Huffington Post’s campaign finance donation database (she’s not in the white pages, that other Orwellian data set few seem to care about). It’s all fine and well for the government to put our name, address and employer online every time we make a donation to a political candidate (along with the donation recipient and amount) because that’s “Transparency.” (Never mind the constitutionally protected right of non-profits like CWD to keep their donor lists private, while other groups like my own think tank voluntarily disclose such info.) But if Google puts up photos of what anyone can see from the street or attempts to map wireless networks to help us all get better, faster free location-based services with our mobile devices… well, that‘s an outrage!

Cyber-Security Begins at Home

Even more galling is that the Senate is rushing to pass legislation giving government sweeping new powers to protect our “national assets” in cyberspace. But cyber-security truly begins at home—with taking a few minutes to secure our own Wi-Fi networks, and then dealing with the hassle of having to remember the password every time we want to authorize a new device. If members of Congress can’t be expected to take responsibility for that, why should we trust them with responsibility over cyber-security on a national level?

This controversy should highlight the need for consumers—especially Congressmen and other government employees—to secure their home Wi-Fi hotspots. While most people who log onto unsecure Wi-Fi networks are perfectly harmless, failing to secure your network could lead to real harms like identity theft—or perhaps even the theft of sensitive data. But those problems aren’t caused by, or even made worse by, Google’s efforts to map Wi-Fi networks. So haranguing Google won’t fix the problem.

But was national security compromised, as CWD claims? Ms. Harman and other Congressmen do have to follow established security procedures, like using encrypted data cards, before accessing sensitive—and, certainly, classified—information. So it seems pretty unlikely that Google could actually have gotten access to any sensitive data even if they had wanted to. Again, their cars were driving by houses, picking up only very small amounts of data from unencrypted networks (unlike the dedicated hacker who might park out front and log data for hours). But if truly sensitive information can be picked up that easily, the Federal government really needs to get its own house—and its telecommuting employee’s houses—in order! If that means sending out a nerd who can set up secure Wi-Fi networks in the Congresswoman’s home (or just follow these simple instructions), that’s probably a smart expenditure of tax dollars.

But that’s the kind of serious discussion we should be having—instead continually looking to breathe new life into a contrived controversy with further innuendo and fear-mongering.

As we’ve noted here before in our ongoing series on “Problems in Public Utility Paradise,” municipal wi-fi experiments and local government fiber investments don’t have a very impressive track record. The Philadelphia experiment, which I have discussed here before many times, has been particularly instructive.  As Dan P. Lee documented in this spectacular Philadelphia magazine article last year, the city’s subsidized wi-fi system, Wireless Philadelphia, was a political and technical fiasco of the highest order right from the start. It unraveled fairly quickly after its 2005 launch and now, according to The Philadelphia Business Journal:

The city of Philadelphia said Wednesday it intends to purchase, for $2 million, the wireless network constructed by EarthLink Inc. to turn the entire city into a Wifi hotspot. The city said it intends to exercise an option in an agreement signed in August to buy the network from Network Acquisition Co. LLC, which took the network over from Atlanta-based EarthLink in June 2008. The city said the purchase will be the first in a series of steps to create a wireless network it will use to enhance public safety, improve government efficiency and provide Internet access in targeted public places. The city said creating that network will require it to spend nearly $17 million over its 2011 through 2015 fiscal years. The money would go to building out both the core fiber network it already owns and the wireless mesh network it intends to purchase from Network Acquisition Co…

In other words, taxpayers are stuck picking up the tab for this failed experiment and now have to hope that the city can somehow manage it into profitability. Well, good luck with that.  Even Karl Bode of Broadband Reports, someone who usually has nothing but nice things to say about Big Government high-tech projects and regulation, is forced to admit that the script for muni wi-fi paradise didn’t quite play out as expected:

Network Acquisition Corporation purchased the network from Earthlink back in 2008, when Earthlink bailed (and we really mean bailed) on their muni-fi ambitions. The buyers briefly tinkered with free access and claimed they’d expand the network, but ultimately wound up being only a stepping stone between Earthlink and Philadelphia control. Philadelphia’s use of Wi-Fi as a municipal efficiency and communications tool is a growing trend among cities, many of which found that broad, free Wi-Fi for all simply wasn’t sustainable.

Do you mean to say that there is no such thing as a free lunch?  I am shocked, shocked!  Well, actually, I’m not. Because back in 2005, I wrote a white paper entitled “Risky Business: Philadelphia’s Plan for Providing Wi-Fi Service,” and it began with the following question: “Should taxpayers finance government entry into an increasingly competitive, but technologically volatile, business market?”  In the report, I highlighted the significant risks involved here in light of how rapidly broadband technology and the marketplace was evolving. Moreover, I pointed to the dismal track record of previous municipal experiments in this field, which almost without exception ended in failure. I went on to argue:

Keeping these facts in mind, it hardly makes sense for municipal governments to assume the significant risks involved in becoming a player in the broadband marketplace. Even an investment in wi-fi along the lines of what Philadelphia is proposing, is a risky roll of the dice. [… ]  the nagging “problem” of technological change is especially acute for municipal entities operating in a dynamic marketplace like broadband. Their unwillingness or inability to adapt to technological change could leave their communities with rapidly outmoded networks, and leave taxpayers footing the bill.

I got a stunning amount of hate mail and cranky calls from people after I released this paper.  Everyone accused me of being a sock puppet for incumbent broadband providers or just not understanding the importance of the endeavor.  But as I told everyone at the time, I wasn’t out to block Philadelphia from conducting this experiment, I just didn’t think it had any chance of being successful.  And, again, I tried to point out what a shame it would be if taxpayers were somehow stuck picking up the tab.

And now that is what has happened.  Folks, I am not above saying it… I told you so!   Anybody want to place bets on how much this will cost Philly taxpayers before all is said and done?

At the rate they are going, it would be cheaper for the city to just give everyone a voucher to go buy service from a private broadband provider. It would make a lot more sense, and spur more real competition and investment.

For some time now here at the TLF, we have been documenting the track record of various government-owned or subsidized utility projects — municipal wi-fi projects, locally-owned telecom ventures, city or state fiber projects, and so on.  We’ve attempted to see if the rhetoric matches the reality when it comes to the grandiose promises made about government investment or ownership of communications or broadband networks being our ticket to high-tech paradise.

The results?  Well, the record speaks for itself.  It’s been one miserable failure after another.  And yet the high-tech pork barrel rolls on and taxpayers are all too often stuck picking up the tab.

I just wanted to make everyone aware of the fact that I finally got around to collecting most of our essays on the subject here into an “Ongoing Series” page that will be permanently housed here.  (As far as I can tell, we’re up to about 18 or 19 installments).  I encourage my TLF contributors to help me contribute entries to the series and I also invite our readers to continue to submit examples of these experiments so we can continue to document their failure.  Of course, if there are success stories, we’d like to hear about those too.  But that will likely be a much shorter series!

Over at DrewClark.com, earlier today I reported today that television networks – which in recent years have had a strained relationship with local broadcasters on a variety of fronts – joined with the National Association of Broadcasters in calling for a time out on the politically simmering issue of “white spaces.” Here’s the start of the story, and you can read the full post at DrewClark.com

WASHINGTON, October 23 – The top executives of the four major broadcast networks on Thursday urged the head of the Federal Communications Commission to delay a vote on a politically simmering issue that pits broadcasters against Google and high-tech executives.

In the letter, the CEOs of CBS Corp., NBC Universal and Walt Disney, and the chief operating officer of News Corp., urge that the FCC exercise caution before taking irreparable action with regard to the vacant television channels known as “white spaces.”

Google and the other technology executives, including Microsoft, Motorola, Philips and others, want the FCC to authorize electronic devices that capable of transmitting internet signals over vacant television bands.

The network executives – CBS’s Leslie Moonves, Disney’s Robert Iger, NBC’s Jeffrey Zucker and Peter Chernin of News Corp. – want a time out.

They join their local broadcasting colleagues, as well as manufacturers and users of wireless microphones, like the National Football League and Boadway theater owners, who have been actively lobbying the issue.

[…]

Read the rest of the story at my blog, DrewClark.com – The Politics of Telecom, Media and Technology

Boynton Beach, Florida’s experiment with municipal wi-fi has ended.  [Add it to the list of recent failures]. According to the South Florida Sun-Sentinel:

There’s a roadblock in Boynton Beach‘s information superhighway. The city’s Community Redevelopment Agency decided this month it has no more money for free wireless Internet service in its district.  Boynton Beach was the first city in Palm Beach County to offer Wi-Fi three years ago. It operated 11 “hot spots,” or access points, paying $44,000 annually for vendors to keep the system running. But the CRA dropped vendors who failed to meet their contracts. Other companies wanted to sell the Community Redevelopment Agency new equipment, but in a tough budget year, offering free wireless was no longer viable, said the agency’s executive director, Lisa Bright.  […]  “There is clearly no way for it to be a revenue generator at this time,” Bright said. “It’s premature for us to go to the next level.”

Whenever I read one of these articles about the small town or mid-sized town wi-fi experiments failing so miserably I have to admit that I am a bit surprised.  After all, many muni wi-fi supporters have argued that it is precisely in those communities where government support is most necessary and will be most likely to fill in gaps left by sporadic / delayed private broadband deployment.  Frankly, I always thought this was the best argument for muni wi-fi and it’s why I made sure to never go on record as opposing all government efforts, even though I am obviously a skeptic and don’t like the idea of wagering taxpayer money on such risky ventures. (By contrast, I could just never see the reason for government subsidies of wi-fi ventures in major metro areas with existing private broadband operators. Like Philly and Chicago.)

But the fact that many small town or mid-sized town wi-fi experiments are failing is really interesting because it must tell us something about either (a) the viability of the technology or (b) demand for such service.  Now, many municipalization believers will just say that clearly (a) is the case and argue that we just need to wait for Wi-Max solutions to come online and then all will be fine.  It certainly may be the case that Wi-Max will help boost coverage in low density areas, but is that really the end of the story?  What about demand?  What really makes me mad when I read most of these stories about current failed experiments is that they rarely give us any solid numbers about how many people utilized the services.  To the extent any journalists or analysts are out there contemplating a story or study on this issue, I beg you to dig into the demand side of the equation and try to find out how much of the currently muni-wifi failure is due to technology and how much is due to demand, or lack thereof.  Of course, government mismanagement could also be a culprit. But I suspect there is a far less demand for these services than supporters have estimated.

I posted an essay last month about some possible non-regulatory solutions to the problem of porn on planes that I predicted might develop once airlines started rolling out in-flight Internet access.  Some respondants to that essay argued this was likely a non-problem because few people would actually view porn in public.  Unfortunately, a few incidents have apparently already created controversy.

Frankly, I am shocked that legislation hasn’t already been floated on this issue, but I am sure that someone in Congress will be firing off something soon. Again, like I said in that previous essay, before things get ugly and bills start flying up on the Hill, the airlines need to think about crafting some constructive solutions to this problem. We don’t want the FCC to become the censors of the sky, as some lawmakers will no doubt propose eventually.

Portland’s muni wi-fi experiment has failed. [Add it to the list of failures]. According to Broadband Reports, taxpayers are going to be on the line for $60K:

Portland had high hopes of being one of those cities where citywide wireless networks might actually work but those hopes did not pan out. Earlier this summer, Wi-Fi provider MetroFi announced that the company could not afford to continue operating the network there. Attempts to sell it off failed and the network was shut down. That’s not the end of the story, though. In order to launch the network, MetroFi had to set up 600 (arguably unsightly) antennas throughout the city. The company had claimed that these antennas would be removed by the end of July but they remain up; MetroFi says that they still plan to follow through on removing them but city staff members report fears that the company is too strapped for cash to keep their end of this bargain. Estimates for removal are around $90,000; subtracting out a $30,000 bond for removal that was part of the MetroFi contract would still mean that Portland’s taxpayers could pay up to $60,000 to get those antennas taken down.