A Stitch in Haste

As I have blogged several times before (see chain below), my primary opposition to municipally-provided (i.e., taxpayer-subsidized) Wi-Fi Internet access is of course that it simply isn't a public good, any more that cell phone service is.

Another point I've made is that governments, especially local governments, have terrible track records when it comes to maintaining or upgrading their technologies to keep pace with innovation. If local governments undercut the private sector, then people will be "stuck" with Wi-Fi, even as new technologies become available.

Now we have news that, while cities and bloggers continue to proclaim how "neat-o!" municipal Wi-Fi is, the technology is already starting to die:

Verizon Communications Inc. is turning off the free wireless Internet access it beams from New York City telephone booths for DSL subscribers who use laptops away from home or the office.

The company revealed the decision on Wednesday as its Verizon Wireless unit announced plans to accelerate the deployment of a fee-based cellular Internet service in the New York area.
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Back then [in 2003], Wi-Fi was exploding in popularity and Verizon was trying to jump-start its DSL business in a bid to catch up with rival providers of high-speed broadband service, particularly cable TV companies.
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But with Verizon Wireless spending billions to upgrade its cell network for speedier Internet connections costing up to $80 per month, the company has decided the time has come to pull the plug on the free Wi-Fi network.
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Verizon said the service, based on a technology called EV-DO, offers far wider coverage and seamless connectivity for roaming laptop users. A Wi-Fi signal, though usually several times speedier than the cellular Internet service, can only travel several hundred feet.

Now some might argue that, since the "greedy," profit-driven telecom company is shutting down its Wi-Fi hot-spots, that's all the more reason for the city to step in and provide its own free or non-profit service. But keep in mind why Verizon is shutting down its hotspots -- it has already determined that users want more and better service, and apparently EV-DO is the answer. It took less than two years for Wi-Fi to become a substandard technology; how long will it take before it is completely obsolete? (The answer probably is "just as much time as it takes for cities to build Wi-Fi networks.")

Just like cell phone service, just like cable television, just like computer networking, just like wired Internet access, so too is wireless Internet access evolving faster than even the private sector can seem to keep up. Who can claim with a straight face that the public sector will be able to keep up and provide a useful system for any viable length of time?

City governments should step out of the way and let the profit motive do what it does best -- give people what they really want. To the extent local hack politicians feel a desperate need to help "the poor," then they should consider some form of voucher. (And who the heck are "the poor" in this context anyway? The people who can afford a $2,000 laptop but can't afford a monthly EV-DO bill?)

Libertarians need to start seeing past the "neat-o" enticement of "free" Wi-Fi and trust the market, just like they do with all other private goods.