Minneapolis Wi-Fi: Time to Pull the Contract?
From:
Dan McGuire
Date:
Mar 23 19:19 UTC
Short link
dyna wrote:
> Any way you tweak the numbers, barring some very patient venture
> capitalists or other funding sources, U.S. Internet is going to
> default. Whether the default comes from losing it's city subsidy for
> failure to meet performance specifications or inability to pay the
> help and bills, the system is probably going to be abandoned on our
> city's property. Had there been more diligence before signing the
> contract we might not be facing that eventuality, but that's water
> under the dam. Our city and especially it's leaders needs to demand
> more of U.S. Internet and quit prolonging the inevitable with
> subsidies if they can't meet specifications. Our city can take
> possession of the system that may soon be abandoned on our light
> poles, upgrade it, and make it functional with our own city workers
> and local tradespeople- all it takes is our council and mayor to show
> some leadership on this issue instead of blindly rubber stamping
> departmental and consultants recommendations.
>
I think USI will probably let somebody buy them out. How much the original
owners make on the deal will, of course, be something we'll never know and it
will likely be contingent on the city renewing the contract with the new owners
in some manner. The city could choose to say NO to a new deal and do it
themselves or hire somebody else to finish building the system so that the city
could take over later. If the new owners can do the same kind of sales job
with the city that USI did, they (the new owners) could get themselves a good
market.
I have always thought that the whole deal was very sloppily organized. The
city was afraid of Qwest and so the city took as little risk as possible. I
think the potential market is a whole lot bigger than even USI has suggested
for someone willing to stand up to Qwest. The wider wireless business has yet
to produced any big strong players, but they should start showing up soon.