Not many may be aware, but the humble (fixed-line) telephone was initially promoted as a mass medium for information & audio entertainment! In the 1930s & '40s telephone companies had actually launched services like "Dial 199 to listen to Waltz Music" & "Dial 200 for Weather Report". And although these services did not take off, it does look like we've come a full circle !

With rapidly dropping voice calls rates (thanks to VoIP), telecom service providers are per force looking at other avenues for growth. (Typical examples: paid mobile download service for songs or video on demand services hosted by telecom cos.) With cable operators also gearing up to offer VoIP over broadband, the telecom business is bound to change radically.

Apart from VoIP, there is another development which may have an even more drastic effect on the telecom business. For the past year or so, city municipalities have been experimenting (quite successfully) with free wireless broadband services based on WiFi and WiMax standards. As it gathers momentum, this trend could give rise to expectations of free basic connectivity, at least for non-commercial use. (Much like we have all come to expect free information from the Internet !)

Metro Wireless : Wireless Broadband as a Public Service
Metro Wireless Networks, sometimes called Municipal Wireless Networks can be defined as telecom services set up on the initiative of the local government. These are usually subsidized and sometimes free. And very often, these are set up by progressive local councils to improve internal communications between departments & employees - within city limits. (Once set up successfully, the huge excess capacity is offered to local businesses & citizens at reduced rates.)

Free broadband services via WiFi is catching up in the U.S.A. Increasingly, state & town authorities are providing free broadband services (usually via wireless). Free Wi-Fi service is a reality on Iowa State highways and parts of San Francisco, Washington D.C., Philadelphia, Minneapolis & many other cities. And many other municipalities like Portland, Alexandria, St Paul are firming up plans for citywide Wi-Fi / WiMax networks. All these public networks offer broadband connectivity either free of cost or at considerably reduced rates. With today's VoIP technology, the next step is crystal clear : free voice calls via WiFi wireless networks.

This is obviously bad news for existing telecom operators. And as if that were not enough, Internet giants like Google, Yahoo!, AOL are also jumping onto the telecom bandwagon - by setting up free wireless broadband networks !

As expected, U.S. based telecom service-providers have regularly denounced such public wireless services, arguing that this denies them their "commercial opportunity".

Brighton's Metro Wireless Network
Although there are WiFi installations all over the world, countries other than the U.S.A. including the other-wise advanced U.K. are relatively behind when it comes to Municipal Wireless Networks. Except for Brighton, U.K. which has adopted an unique approach.

Brighton District Council felt the need for fast data links between its offices spread across the city. It soon found that existing technology like SDSL & ADSL were not practical as the existing "copper" telephone lines were too old for supporting broadband. The choice fell on WiMax technology, which was always considered a potential competitor for GSM/GPRS/3G.

WiMax is comparatively economical and ideal for linking local buildings : hence Brighton's Council commissioned a WiMax broadband network that can carry up to 24 Mbit/s of bandwidth.

This network was set up essentially to facilitate the Council's communication requirements with its divisions, employees, contractors - in order to carry out/monitor its work within the city. Thus, was established the "24/7 wireless connectivity" between all buildings and the future possibility of mobile Internet access to its workforce.

As it transpired, Brighton's Council has laid the foundations to distribute data to its field workers at a much lower cost than it would have by using BT leased lines or a 3G / GPRS mobile operator !

In addition to offering free WiFi access in public places, Brighton's Council offers data connections using virtual LANs (VLANs) for data security to businesses & residences. And with "commercial grade" Internet telephony technology available, Brighton now offers its network to business users who need to install an Internet-connected PBX in their offices.

Since all these services are available at lower than commercial rates, it will be difficult for private telecom operators to "lure" customers with their usual "schemes".

Compared to free WiFi services offered in other cities, Brighton's Municipal Wirelesss Network certainly seems more sensible as the robust revenue model eliminates the possibility of shutting down.

End Of The Line?
VoIP services can add hundreds of thousands of users every day. Users who “bring” their own computers, use their own internet connections & even help market (by inviting each other). And Metro Wireless Networks can offer near-free connectivity. This potent combination of VoIP & Metro Wireless Networks may accelerate the (inevitable) era of "practically free voice calls" to the near future.

Indeed, Metro Wireless Networks like Brighton (U.K.) may be a signal to private telecom operators to re-value their strategic investments in telecom infrastructure.

Such is the power of Internet technology ! 

                                                                                                                         Link to Part I