Released on = January 27, 2006, 3:48 am

Press Release Author = Visiongain

Industry = Computers

Press Release Summary = San Francisco, CA and London, UK; 26 January 2006: There are
over 400 cities worldwide planning to deploy municipal broadband networks and the
number will double in 2006, making community broadband initiatives a very real and
significant trend. That is the finding of the latest report, "Municipal Broadband
Networks: Market impact and implications, 2006-2011", published by industry research
firm visiongain.

Press Release Body = Despite legal opposition and intense lobbying from incumbent
telcos and cable companies, municipal broadband is coming and is here to stay. As of
Q1 2006, there are over 100 city and regional wireless broadband networks
operational worldwide, more than 40 of which are in the US.

Small town rural deployments were the beginning of the wave, but the tide is now
embracing large urban metropolises. New York, San Francisco, Rome and Paris are
among the major cities planning wide-scale deployments. While these networks present
yet another new competitive threat to the broadband market landscape, there are
opportunities to be grasped for service providers, whether fixed-line or wireless,
if these companies play their cards right. Major vendors, such as Motorola, Cisco,
HP and IBM are already reaping cumulative contract awards running into hundreds of
millions of dollars.

"Generally speaking, we believe resistance towards Muni networks is futile," says
lead author Pam Duffey. "Finer points of the debate aside, it is fast becoming a
city or state government duty to provide at least the means for widespread broadband
service to the citizenry. By 2010/2011, we believe the majority of cities and
townships in the US will have a municipal wireless network in place and the focus
then will be in uniting them into a seamless, if not centralised, national network."

"New and emerging applications such as digital libraries, virtual laboratories,
distance-independent learning and tele-immersion will require broadband speeds and
reverse the digital divide. In addition, applications such as LBS and gaming over
city-wide networks could seriously threaten existing carrier business models," adds
Duffey.

For a large number of reasons, municipalities are considering the concept of a
Municipal Broadband Network as the \"fifth utility.\" These communities are choosing
between deploying fibre and a wireless broadband network using Wi-Fi hotspots, mesh
networks or pre-WiMAX technology. There will be a significant build-out, blending
technologies and building on existing service, both wired and unwired.

However, many technological and business factors need to be considered, any one of
which can better or worsen the outcome for any given municipality. Often, cities
lack sufficient experience and knowledge of technologies to make the best choices
and compound the problem further by inadequately funding the effort or by employing
a business model that can not sustain the endeavor.

This report examines the various technology options open to communities in deploying
broadband networks, as well as the business models, assessing the advantages and
disadvantages of each approach. It looks at case studies of successful and failed
initiatives, identifying and outlining the reasons behind them. The impact that
these networks have had and will have on local markets and incumbent operators are
also analysed.

ENDS

Notes for Editors
If you are interested in a more detailed overview of this report, please send an
e-mail to sara.peerun@visiongain.com or phone Sara on 020 8767 6711 or visit
http://www.visiongainintelligence.com/reportDetail.aspx?reportId

Web Site = http://www.visiongainintelligence.com

Contact Details = Visiongain
40, Tooting High St
London SW17 0RG

Tel +44(0)20 8767 6711
Fax +44(0)20 8767 5001

sara.peerun@visiongain.com