[BC] Mobile streaming - who needs IBOC?

[Mark Humphrey]

This is the direction I think we're headed, especially in the larger
(high-population density) markets.  Look at the economics and see what
you think:

Philadelphia is currently building a city-wide WiFi broadband "mesh
network" which will provide broadband access to a population of about
1.5 million.  The projected capital expense is $10 million, but these
projects usually run over budget, so let's figure $15 million.  This
system will support access to thousands of high-quality audio streams,
plus everything else on the Internet. See:
http://www.phila.gov/wireless/index.html

However, a single "Class A" commercial FM station capable of providing
IBOC coverage to the same area (and a bit further) would set an
investor back around $30 million -- just for purchase of the FCC
license.  The necessary transmitting equipment would be a few hundred
thousand more.  Compared with the WiFi system, over twice as expensive
-- yet, the operator is only given the ability to push out 96kbps of
digital bandwidth (two or three mediocre-sounding programs) and a
little bit of text.  Does this sound like a good deal? If you also
take the analog channel (which provides access to existing FM
receivers) into account, perhaps $30M is a fair price.  But the
throughput of the digital signal just doesn't compare with other
technologies.

Which leads to the question: What's to stop a "content provider" from
building their own high-speed network using unlicensed WiFi spectrum
and operating it under the traditional advertiser-supported model?
I'll bet there are a few of these under construction (or at least in
the planning stages) as we speak.

Mark


On 6/27/06, Goran Tomas <goran.tomas at email.htnet.hr> wrote:
> I'm wondering what are the thoughts of respected ladies and gentlemen
> on the topic of mobile streaming?
>
>