The Municipal Challenge

Municipal network deployments continue to emerge throughout the U.S., in some cases threatening to provide significant competition to service provider networks. The municipal focus is shifting from single-application networks — such as automatic meter reading or public safety — in smaller communities to multi-application, multipurpose networks in larger cities and communities. With networks capable of reaching beyond just the local government and its workers, concern arises over how to be competitive and meet consumer and business expectations in these communities.

To meet those needs, municipalities must have a thorough understanding of the requirements of potential users in their communities, particularly in the areas of application and speed requirements. They also must develop competitive approaches to address pricing, service flexibility, network reliability and security, comprehensive coverage, ease of use and customer service.

Pricing their service competitively or lower than the incumbent service provider offerings is essential to initial market penetration for municipal operators. From there, offering flexible solutions that are scalable for businesses or more practical for consumers at home will help secure customers beyond those who are price-focused. Providing affordable broadband access will have strong market appeal. Providing tiered offerings and a free or shared computer with training to low-income residents will help to bridge the divide and invigorate poorer communities economically and socially.

Security and reliability are key factors to ensure when providing broadband access to any type of customer. High quality of service for emergency responders and municipal workers to guarantee secure and accurate data transmission is critical to the adoption of the municipal service by these groups. In addition, businesses need a secure, self-healing, redundant network that will not cost them any business because of network outages. Consumers want a secure home network that won't expose personal information to hackers and is reliable and won't continually bump them off the connection while downloading pictures or using other applications.

The purpose of the municipal network movement is to achieve coverage in areas where incumbent services are spotty, non-existent or too slow for anyone to use effectively. Municipal networks must have comprehensive coverage, leaving no area untapped in the region designated for the broadband network. Otherwise, the municipal service will be no better than the existing option, leaving customers frustrated with poor quality.

Finally, the network must be easy to use. In addition to a network vendor, the city must engage a service platform vendor that can develop a user-friendly interface. Whether the user is a visitor or a local resident, when they turn on a laptop and try to access the network, the start-up site must be easy to navigate. The city home page should be equipped with an easy log-on feature, with a subscription option to select only desired advertising or none at all. To handle any network problems or user issues, high-quality and attentive customer service representatives capable of handling any call quickly and effectively must be available 24/7.

Comprehensive research of customer application needs will help communities understand what a municipal network must accomplish. Making sure the network is affordable, reliable, secure and ubiquitous will encourage consumer and business users to use the network and keep them satisfied.

Tara Howard is an associate analyst with the Yankee Group.