[opendtv] Re: VC kills fund because technology not worth the effort

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Tue, 10 Oct 2006 14:41:58 -0400

John Shutt wrote:

> With city after city planning to build out their own *free* Wi-Fi
> nets, why would anyone invest in companies that plan building and
> charging for the same thing?

For one thing, it's not free to set up the network. Even for the
municipal nets, companies still have to raise the capital required to
set up these nets. That's where the venture capitalists come in. And
there are non-municipal nets wanting to compete against the municipal
nets anyway.

The other part of the answer involves claims vs realities. See, for
example,

http://www.freepress.net/news/17794

http://www.benton.org/index.php?q=node/3469

Sometimes these hyped up news items take on a life of their own, gaining
a certain amount of credibility just be being repeated so many times.
I'll remind you, for example, of all the hype surrounding the supposedly
imminent introduction of DTT in Sardegna, which was supposed to have
happened 31 January 2006, then 31 July 2006, and now not expected until
sometime in 2008.

A lot of the frenzy died down when it became apparent to the politicians
in charge, finally, that the claims made did not come close to matching
what their expectations had been. In the Sardegna example, (1) DTT did
not by itself provide broadband access, and (2) interactive DTT would
only be available with the approved and subsidized DTT STBs *if* the
local telco became the ISP for the necessary Internet link for the STB.
Surprise surprise. (Should not have been a surprise.)

In the Philadelphia example, same sort of thing. The service will not
truly be ubiquitous or free.

http://www.netstumbler.com/2005/12/09/wi_fi_venture_tests_philadelphia/

And something Steve mentioned is also true. Which is, with Sprint's
WiMax around the corner, the need for this Wi-Fi variant is doubtful.

Bert
 
 
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