Om Malik has on his blog an entry on his blog discussing some rumors that Google have issued a proposal in response to San Franciscos municipal Wi-Fi RFP. Now, this is something that is very, very interesting.
I may have to eat my own words about Google not being willing to deploy ubiquitous Wi-Fi coverage, which is one of the recurring rumors related to Googles recent lease of dark fiber and launch of their Secure VPN for Wi-Fi software. I took some issue with the conclusion that the dark fiber network should lead one to conclude a push for Wi-Fi ubiquity from Google based on the complications and expense of deploying access points and purchasing the last mile connectivity to those access points. I stand by the supposition that this would be a pain for Google, but active participation in municipal Wi-Fi efforts really does turn this issue on its side. By getting municipalities to pony up the rights of way on lampposts and whatnot as well as effectively pay Google for the privilege of taking on the role of deploying access points and last mile connectivity, all of a sudden this is looking like a strategy Google could pursue.
The beauty part of this both for Google and municipalities is that Google can separate the ad revenue from Wi-Fi access through the VPN software offering. By making the VPN software optional to accessing the Wi-Fi network, Google frees the municipalities from being concerned about Google receiving ad revenue from a network built on a municipal contract. The great thing for consumers is that Googles network is most likely going to be required to offer non-discriminatory access to users of other security and other value-added Wi-Fi access software. I would suspect that those approving municipal contracts would look to prevent Google from getting an advantage from vertical integration with the underlying infrastructure built on a municipal contract (at leas they SHOULD). We should expect the value-added Wi-Fi software space bloom in a few years with competing companies looking to provide all kinds of functionality above and beyond simple Wi-Fi connectivity and offering customers a number of business models.
One issue that made me a big fan of Googles VPN software was the ability of this service to offer an important security function to Wi-Fi. I said something to the affect that companies offering traditional broadband (mostly the Bells and cable companies) should be kicking themselves. Google taking an active role in municipal Wi-Fi networks should keep executives at these companies awake at night. I hope the executives at the Bell and cable companies can recognize that a very savvy competitor has just entered their space. If Google succeeds with this strategy, they are going to eat your breakfast, lunch and dinner.
