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Half Of City Wi-Fi Projects Won't Break Even - Report

A new report says that the cost of building municipal wireless networks will average $150,000 per square mile and that half of the planned networks won't break even.
Half of all municipal Wi-Fi network projects won't break even, a JupiterResearch report released Wednesday claims.

The report says that the cost of building and maintaining a municipal wireless network will average $150,000 per square mile over five years. The study acknowledged that the benefits of municipal networks are hard to quantify, but based its estimate that half the networks wouldn't break even on the assumption that the benefit would be $25 per user per month.

"This is a large potential market made up of roughly 40,000 localities, with projects that are often very large in scope and scale," Julie Ask, a JupiterResearch research director said in a statement. "Defining realistic goals as well as sound strategies and operational models today will greatly benefit vendors, government decision-makers and citizens alike."

The study came to its conclusion on network cost by closely examining a number of current projects in the U.S.