Municipal Wi-Fi As Public Service Delivery Platform

Wireless Solutions (Pty) Ltd Reg. No. 2017/047852/07

MUNICIPAL WI-FI AS PUBLIC SERVICE DELIVERY PLATFORM

Version 4 (Work in progress)

June 2016

Wireless Solutions (Pty) Ltd Reg. No. 2017/047852/07

PURPOSE OF THIS DOCUMENT

This document is not prescriptive but seeks to share information on municipal Wi-Fi as a service delivery platform and assist decision makers at local government to be in a position to take informed decisions when implementing Municipal Wi-Fi. It is not a technical document.

Wireless Solutions (Pty) Ltd Reg. No. 2017/047852/07

CONTENTS

1. EXECUTIVE SUMMARY ...... 5 2. BACKGROUND INFORMATION ...... 6 2.1. What Is Wi-Fi? ...... 6 2.2. Free Public and Commercial Wi-Fi Hotspots ...... 6 2.3. Categories of Wi-Fi Hotspots ...... 7 2.4. Relevance of Free Wi-Fi To South Africa ...... 8 3. INTRODUCTION ...... 8 3.1. Wi-Fi A Wireless Broadband Technology ...... 8 3.2. Wide area Wi-Fi Can Compliment 3G/4G Technologies ...... 9 3.3. Deployment Of Municipal Wi-Fi in South Africa ...... 10 4. MUNICIPAL WI-FI NETWORK ...... 10 4.1. Description ...... 10 4.2. Municipal Wi-Fi Infrastructure Deployment ...... 11 5. BENEFITS TO CITIZENS AND MUNICIPALITIES/CITIES ...... 12 5.1. Municipal Wi-Fi as a Service Platform...... 12 5.2. Benefits to Citizens ...... 12 5.3. Benefits To Municipalities ...... 13 6. CONSIDERATIONS WHEN IMPLEMENTING MUNICIPAL WI-FI HOTSPOTS ...... 14 6.1. Considerations ...... 14 6.2. Purpose of Deploying Municipal Wi-Fi ...... 15 6.3. Available Bandwidth ...... 15 6.4. Identified Locations ...... 16 6.5. Other Factors To Be Considered ...... 16 7. MUNICIPALITIES AND METRO CITIES WHERE FREE WI-FI HOTSPOTS HAVE BEEN IMPLEMENTED IN SOUTH AFRICA ...... 17 7.1. DTPS Engagement On Municipal Free Wi-Fi ...... 17 7.2. DTPS Supported Planned or Implemented Sites in 6 Metro Cities by June 2016 ...... 18 7.3. City of Tshwane ...... 18 7.4. City of Johannesburg ...... 19 7.5. City of Cape Town ...... 20 7.6. Knysna ...... 20

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7.7. Ethekwini Metro...... 20 7.8. Dr. Kenneth Kaunda District Municipality ...... 20 7.9. Tzaneen Network ...... 20 7.10. Summarised Experience of Metro Cities ...... 20 8. WI-FI AND INFORMATION SECURITY ASPECTS ...... 21 8.1. Wi-Fi Vulnerability ...... 21 8.2. Categories Of Threats That Can Be Associated With Wi-Fi ...... 22 9. DISCUSSIONS ...... 23 9.1. Business Case ...... 23 9.2. Service Delivery Focus ...... 23 9.3. Quality Of Service ...... 23 9.4. Broadband Infrastructure ...... 24 10. FUNDING ...... 25 10.1. Challenges In Regard To Funding ...... 25 10.2. Possible Funding Options ...... 25 10.2.1. Grant From The Department ...... 25 10.2.2. Funding from Provincial Government ...... 25 10.2.3. Self-Funding By Municipalities ...... 26 10.2.4. Use of The Universal Service Fund (USF)...... 26 11. FUNDING STRATEGIES FOR MUNICIPAL WIFI...... 27 11.1. Overview ...... 27 11.2. Citizens Absorb Costs ...... 28 11.3. Municipality Subsidies...... 28 11.4. National Government Subsidies ...... 28 11.5. Private Sector Investment ...... 29 11.6. UNIVERSAL SERVICE OBLIGATIONS ...... 29 12. CONCLUSION ...... 29

Wireless Solutions (Pty) Ltd Reg. No. 2017/047852/07

1. EXECUTIVE SUMMARY

Wi-Fi is a wireless broadband technology that allows a number of enabled electronic devices to connect to an Internet via an access point or single account thereby lowering costs to communicate.

It is a technology based on 802.11a/b/g/n IEEE family of Standards. The latest Standard approved is 802.11ac with new features added on. It is a technology that is easy and not expensive to deploy. Operational costs are lower than that of traditional communications networks.

Public Wi-Fi and 3G/4G technologies can compliment each other, depending on business strategies of mobile operators.

Many cities in the world are deploying free municipal public Wi-Fi hotspots to improve on service delivery. The Municipal Wi-Fi network also plays a role in the development of smart cities and facilitating implementation of Internet of Things (IoT). In South Africa, municipal Wi-Fi is considered to be part of national broadband infrastructure though not funded. A number of metro cities and some municipalities have established public Wi-Fi hotspots using grant from the department and self funding. At present there are no clear guidelines on how should municipal Wi-Fi projects be implemented. The big challenge has been the funding of these projects.

There are four funding options that have been implemented to subsidise free municipal public Wi-Fi in South Africa, namely;

 Grant From The Department – has been implemented once off on at 8 metros  Funding From Provincial Government – Western Cape funded Knysna Local Municipality  Self Funding By Municipality – Dr. Kenneth Kaunda District Municipality  Use Of The Universal Service Fund: Extension of 3G networks at Msinga and EMalahleni Local Municipalities in KZN and Eastern Cape respectively

In regard to the future of public Wi-Fi, this is a technology that is IP based and will continue to evolve as demand for bandwidth increases exponentially.

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2. BACKGROUND INFORMATION

2.1. What Is Wi-Fi?

Wi-Fi is a wireless broadband technology that allows a number of enabled electronic devices to connect to an Internet via an access point or single account using radio frequencies in unlicensed bands, namely 2.4 Gigahertz and 5 Gigahertz. Wi-Fi is the technology based on international Institute of Electrical and Electronics Engineers (IEEE) 802.11 Standard.

It is an IP based technology that does not require huge capital investments and does not involve high operational costs. It is a cost effective way of providing Internet access to many users at low or no cost to the user.

It is a proven technology that has been around since 1997 and considered as the last mile of the telecommunications infrastructure. Wide area Wi-Fi, sometimes referred to as carrier grade Wi-Fi, has a large coverage area and an ability to support high speed access and bandwidth demanding applications. It is also viewed in relation to the establishment of smart cities and support to Internet of Things (IoT).

Deployment of free public Wi-Fi is on the increase in many countries. As a result, June 20th, is designated as the World Wi-Fi Day1 that recognizes and celebrates the significant role that Wi-Fi is playing to bridge the digital divide. It is an initiative by Wireless Broadband Alliance under the leadership of Connected City Advisory Board (CCAB).

Wide area Wi-Fi deployment involves fixed and mobile operators as well as Internet Service Providers on the supply side, citizens, business and government organisations on the demand side.

2.2. Free Public and Commercial Wi-Fi Hotspots

Wi-Fi hotspots, to put it more simply, they're places where one can wirelessly connect to the Internet through a connected Wi-Fi enabled device smartphone/laptop or wireless router that becomes an Internet access point.

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Public Wi-Fi hotspots are deployed, usually by government institutions such as metros and municipalities to provide free Internet access to citizens. It is also meant to enhance municipal service delivery and serves as an expression of caring for citizens. The cost of connectivity is borne by the city or government institution.

Commercial Wi-Fi hotspots are deployed by business entities for marketing purposes. Free data allowances per client are usually set at around 250MB per day. The user experience – high speed access to emails and websites, is a critical factor for marketing drive. The cost of connectivity is borne by the hosting business entity. Airports and a number of hotels in South Africa provide secured free public Wi-Fi to clients.

2.3. Categories of Wi-Fi Hotspots

N Category Range Type of Access Connected Established By Point Devices

1 Internet tethering Few meters in Any smartphone Another Any person with an open space or laptop with smartphone or knowledge of or room access to laptop. smartphone features Internet

2  Home radius of up to Wireless router Any Wi-Fi Any person with Wi-Fi 50 meters enabled device. knowledge of wireless Hotspot Can connect up routers to 25 Wi-Fi  Small enabled devices Office Home Office (SOHO) Wi-Fi Hotspot 3 Enterprise Wi-Fi Radius of Programmable Unlimited number A Wireless Internet access point Wireless Access of Wi-Fi enabled Service Provider (WISP) can be up to Points devices 200 meters

4  A Wide Radius of Outdoor Unlimited number A Wireless Internet Area or access point Programmable of Wi-Fi enabled Service Provider (WISP) Carrier can be up to Wireless Access devices or Mobile operator (e.g. Grade 500 meters Points Telkom, Vodacom, Wi-Fi MTN, Cell C)  Municipal Wi-Fi

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2.4. Relevance of Free Wi-Fi To South Africa

Municipal Wi-Fi is in line with Outcome 5: To reduce cost of communication, increase our broadband penetration and to reduce the digital divide in both urban and rural contexts... South Africa recognises free Wi-Fi as part of national broadband which is a critical modern infrastructure that contributes to economic growth, enhances social cohesion and narrows the digital divide.

Wi-fi presents an opportunity for many South Africans, who cannot afford high Internet access costs, to tap on the rich information resource, to sell their services, participate in e-learning and trade in the global market.

3. INTRODUCTION

3.1. Wi-Fi A Wireless Broadband Technology

Wi-Fi is based on the IEEE 802.11 family of Standards such as 802.11a/b/g/n.

Image credit Asus

The latest version of this family of Standards is 802.11ac operating on 5GHz and providing throughput of at least 1Gbps and single-link throughput of at least 500 megabits per second (500 Mbit/s). The Standard has new features such as anti-hacking, self-healing and beam foaming towards an active device thus improving on signal strength. The standard was approved in January 2014. Wi-Fi enabled devices, e.g. smartphones, laptops, smart television sets etc. are now 802.11ac compatible.

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At times, the situation may require that 802.11n and 802.11ac equipment be deployed simultaneously to compliment each other.

3.2. Wide area Wi-Fi Can Compliment 3G/4G Technologies

Although there are similarities and differences between wide area Wi-Fi and 3G/4G, these technologies can complement each other. Wide area Wi-Fi access points minimise the number of 3G/4G base stations required to cover a given area for the delivery of broadband services. Therefore, Wide area Wi-Fi can be considered as a mobile broadband optimisation tool.

According to this diagram, required bandwidth is factor of six that requires two 3G/4G base stations but one base station covers a factor of three (centre ring). Therefore an implemented solution is to use one base station and complement with Wi-Fi access points to satisfy the required bandwidth demand.

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TThis is a cost effective approach because it is cheaper to deploy Wi-Fi access points to cover the same area that can be covered by a single base station. It is also cost effective to increase capacity by adding more access points.

However, current business interests of mobile operators may not be in favour of the deployment of wide area Wi-Fi. Mobile operators have a tendency to prioritise certain areas and give less priority to areas that are less economic active. They may consider wide area Wi-Fi as a disruptive technology that affects their revenue streams. On the other hand, evolution of long range Wi-Fi may disrupt business of those mobile operators that fail to adopt new business strategies.

Government mandate is to ensure universal access to broadband services.

3.3. Deployment Of Municipal Wi-Fi in South Africa

In South Africa, municipalities are showing a growing interest to deploy this technology as an intervention to provide free internet access to the public and promote easy access to municipal services. The challenge experienced has been funding the establishment of free public hotspots and ensuring sustainability of these projects.

The Department allocated R40 million to initiate free Wi-Fi hotspots in eight metro cities. Other municipalities did not get the grant, For an instance, Knysna Local Municipality initiated the project with funding from the Western Cape Provincial Government using the Local Economic Development budget allocation. Dr. Kenneth Kaunda District Municipality used its own funds and negotiated favourable payment arrangements with the wireless Internet service provider.

4. MUNICIPAL WI-FI NETWORK

4.1. Description

Municipal Wi-Fi is a wireless broadband network that is implemented by deploying Wi-Fi technology to a wide municipal area. This is achieved by deploying a network of outdoors wireless access points - often mounted on poles or street lamps, and long range Wi-Fi base stations with a backhaul to the data centre/back office of the wireless service provider

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hat has an access to Internet gateway. Bandwidth availability and robustness of the backhaul infrastructure is critical when implementing municipal Wi-Fi.

4.2. Municipal Wi-Fi Infrastructure Deployment

The operator of the municipal Wi-Fi network is a wireless internet service provider (WISP), usually appointed by the municipality or metro city. The wireless Internet service provider makes use of unlicensed radio frequency bands; 2.4Ghz and 5.8 GHz for coverage and backhaul data traffic from wireless access points to Wi-Fi base stations connecting to its data centre/back office for network management, implementation of Internet security measures and Internet access.

Hotspot

Wireless Access Point Wireless Internet Service Provider

Wi-Fi enabled

Optic fiber backhaul

Wi-Fi Base station

In principle, it is possible for a number of agencies or wireless Internet service providers to establish public Wi-Fi networks using Wi-Fi equipment from different vendors with a backhaul to a common municipal infrastructure.

For an instance, Department of Education can implement, for schools, its own Wi-Fi and Cloud that piggy backs on municipal/city broadband infrastructure and the Department of Health can do the same with clinics and hospitals. However,

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it is preferable to use one service provider as there is a possibility of radio interference and difficulty in account management with administration hustles at back office.

5. BENEFITS TO CITIZENS AND MUNICIPALITIES/CITIES

5.1. Municipal Wi-Fi as a Service Platform

Municipal Wi-Fi can be used as a communication platform to inform citizens. The landing page and other initiatives can be used to inform the public on developments and services.

. Internet based automated monitoring, assessment and reporting on service delivery is possible and allows for timely intervention.

A municipality or city that implements public Wi-Fi is on the right track in this fast changing world in the information economy era.

5.2. Benefits to Citizens

Public Wi-Fi initiatives by local government promotes Internet access and encourage the public to incorporate technology into their daily lives. Citizens are able to access online municipal information, receive accounts and submit applications without having to visit walk in service centres.

The convenience of free Wi-Fi hotspots brings more people on the Internet and has a direct impact on poverty eradication. Free online marketing and trading is a fast growing global trend that contributes to the distribution of wealth. Implementation of free Wi-Fi hotspots opens up small business opportunities. It offers a platform for start-up businesses to enjoy free access to Internet.

Small groups of unemployed young people with common goals can organise themselves to attend free online course or collaborate on a project. It is not difficult for group of friends to meet at their favourite free hotspot and collectively start buying goods online at lower prices and sell at a profit. Patients in hospitals are afforded an opportunity to communicate with their loved ones free of charge and are also entertained when accessing Internet for free.

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5.3. Benefits To Municipalities

Municipal Free Wi-Fi can cut municipal expenses in many ways. Overheads on walk-in service centres can be drastically reduced and application forms can be submitted online thereby allow quicker processing of requests..

Municipal infrastructure can be easily managed remotely. Street lights and water metering can be automated. Municipalities can use the landing page to communicate messages to citizens. Early disaster warning messages, emergency communication and public policing can be supported by municipal Wi-Fi networks. Municipal free Wi-Fi brings with it market competitiveness, promotes tourism and investment in the area.

Free municipal Wi-Fi can generate revenue as demand for continued Internet access surpasses the daily cap per user who has to pay for extra bundles. Internet access can be sold to households to lower their costs to communicate. Income generated can be used to sustain and expand the network.

Municipal telephone and Internet access bills can be replaced by a single account that buys more communications services than the current expenditure. The municipality can provide Internet access at a cost to other government institutions such as schools, clinics etc.

To implement municipal Internet based solutions is important to speed up quality service delivery, and the approach should be solution not technology focussed. Implementation does not have to be a in a big bang. Each project has its own experts and solution vendors. Having stated this,, implementation of municipal Wi-Fi becomes a building block for the modern society in a very near future. After all, this is the direction cities of the world are following.

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6. CONSIDERATIONS WHEN IMPLEMENTING MUNICIPAL WI-FI HOTSPOTS

6.1. Considerations

A number of factors have to be taken into consideration when implementing municipal Wi-Fi, namely;

 the purpose of deploying the service, Internet user experience – should be similar to what is experienced at our international airports,  available bandwidth to deliver the required user experience – preferably fiber optic infrastructure should be in place or else rely on existing 3G/4G coverage or microwave systems delivered by an experienced WISPs,  identified locations, size and number of hotspots,  suitable funding option for the sustainability of the project and  the choice of an experience Wi-Fi service provider.

Most important, technology is there for people to use, therefore, implementation, uptake and usage strategies need to be in place when implementing municipal Wi-Fi.

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6.2. Purpose of Deploying Municipal Wi-Fi

The decision to deploy municipal Wi-Fi should be informed by the following;

N PURPOSE DELIVERY OUTCOME

1 Gesture of a Free public hotspots in libraries, Access to free Internet exposes municipality that cares hospitals, clinics, parks, in more people to useful information multipurpose centres and anywhere and reduces queues at municipal else where citizens spend more than service points as free online 30 minutes waiting to receive submissions and enquiries can be services made

2 Market the A municipality with free hotspots is May grow municipal revenue municipality and attractive to visitors and skilled promote tourism workforce that normally would not be comfortable to stay in rural towns

3 Improve service Free online enquiries and Shorter turnaround times on the delivery submissions to the municipality provision of municipal services

4 Savings on Automated water and electricity Smart city, Internet of Things infrastructure related meters readings, switching on and costs off lights to save on energy consumption,

5 Public safety and Surveillance cameras in busy and Quick incident response by emergency services crime areas, traffic management relevant municipal sections

These considerations need not to be all implemented at once.

6.3. Available Bandwidth

Municipal Wi-Fi needs a high speed and robust broadband backhaul infrastructure. Robustness, in this case, means the network does not quickly get strained and loose quality of service if more people are accessing the Internet at the same time. Proper planning and deployment of right equipment ensures robustness of a municipal Wi-Fi.

Optic fibre backhaul is ideal though at times wireless solutions – satellite and microwave links - are used.

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A wireless Internet service provider can lease backhaul capacity from operators on behalf of the municipality if the municipality does not have its own network arrangement. In addition, an experienced WISP can address all these issues and provide services.

6.4. Identified Locations

Poor choice of sites for free hotspots can be costly. Free public Wi-Fi hotspots should be in safe environments, like libraries, community centres, multipurpose centres, educational and health facilities, shopping centres.

This may require municipality to have discussions with local government institutions in order to leverage on funding sources and optimise on resource usage. For an instance, municipality may enter into some kind of arrangement with regional education office to expand municipal wi-fi to school and regional health institution to establish wi-fi in clinics and other health institutions.

In certain cases, local community needs to be consulted when deploying public Wi-Fi hotspots in their vicinities. It is not much useful to spend money deploying hotspots at bus stops and at cross roads where people are on few minutes transit. Women, disabled and young people may be exposed to criminals and security services may not be swift enough to respond to a criminal act.

Schools need wide area Wi-Fi to meet the bandwidth demand to support education. Hotspots in schools may require deployment of many access points and probably additional Wi-Fi base stations. But all this depends on network planners.

6.5. Other Factors To Be Considered

Deployment of municipal Wi-Fi can be handled in conjunction with reducing municipal telephone and Internet bills. This should be done when negotiating with the service provider,

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In determining the costs to deploy municipal Wi-Fi, a rule of thumb can be used based on average cost per hotspot. Service level agreement that incorporates quality of and continued service need to be in place. Public awareness on Information security and benefits of the Internet should be integrated in Wi-Fi deployment projects.

7. MUNICIPALITIES AND METRO CITIES WHERE FREE WI-FI HOTSPOTS HAVE BEEN IMPLEMENTED IN SOUTH AFRICA

7.1. DTPS Engagement On Municipal Free Wi-Fi

In the meeting of July 2015, Cabinet Lekgotla pronounced that DTPS should identify townships and cities centres where free public Wi-Fi would be rolled and R40 million was reprioritised to the WiFi Rollout project.

DTPS engaged with 8 Metros and agreements for WiFi roll-out signed with 6 Metros :

1 City of Tshwane 5 Nelson Mandela Bay

2 City of Johannesburg 6 Mangaung

3 City of Cape Town 7 eThekwini and

4 Ekurhuleni 8 Buffalo City

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7.2. DTPS Supported Planned or Implemented Sites in 6 Metro Cities by June 2016

Metro No. Of Areas to be covered Types of population Funding Sites concentration areas request (M) targeted

City of Tshwane 61 Mabopane, Saulsville, Winterveldt high population density R 8.9m township areas City of JoBurg 47 Alexandra, Dieplsoot, Tshepisong, disadvantaged R 7.8m Ivory Park, Doornkop, Orlando communities, high public East, Dhlamini, Lawley, Protea concentration areas, South, etc tourism area's City of Cape 26 Athlone, Goodwood, Khayelitsha, libraries & surrounding R 4.6m Town Gugulethu, Harare, Crossroads areas

Ekurhuleni 43 Alberton, Benoni, Daveton, libraries, public areas, R 7.4 m Springs Katlehong, Voslorus, clinics Tembisa, Tsakane, Nigel

Nelson Mandela 30 Zwide, Kwanobuhle, Korter, libraries, customer care R 6m Bay Kwamagxaki, Motherwell, centre's Kwazakhele Mangaung 36 Bloemfontein, Thaba Nchu, 3 townships with R 5.3m Bosthabelo approximately 500000 residents TOTAL 243 R 40m

7.3. City of Tshwane

The project aims to enable 2400 Wi-Fi sites, Tshwane Metro has already deployed 715 Wi-Fi sites. It is expected that DTPS will provide further funding for 61 New Sites. The partner to Tshwane Metro is Project Isizwe that is responsible for delivery of free Wi-Fi to targeted areas for a 12 months fully managed period. At the time of writing, it is not clear as to when will this arrangement expire and what will happen thereafter.

The project is connecting to the City optic fiber infrastructure and delivers an average speed of 1 mbps download and 256kbs upload lower than SA Connect requirement of 10mbps. A free quota of 300 MB per user per day is allocated. The project is partly funded by the City.

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Most sites are within schools vicinities. Radio access points are deployed and offer coverage of up to 100 meters (user experience). In school vicinities these access points are outside school premises and do not offer bandwidth to learners and staff. The reason being that there is insufficient buy-in from the Department of Basic Education.

Project is partly funded by DTPS. Other money comes from the City. Project cash value is R8.8 million.

Network design;

Wi-Fi Hotspots are provided by wireless Access Points connected to Ethernet Point Of Presence (EPOP) switches. Backhaul to the high sites is provided through a 150mbps capacity 5.8Ghz radio link. Longhaul to Project Isizwe data centre is provided by telecoms network operators and Internet access is enabled via Neotel core network.

High level Tshwane Metro Wi-Fi Network architecture:

Source: Project iSizwe Report 7.4. City of Johannesburg

The City of Johannesburg aims to deliver free Wi-Fi hotspots that provide 300MB of data per user per day. The partner to City of Johannesburg has been Project Isizwe and the arrangement is almost similar to Tshwane. However, City of Johannesburg is now engaging Dimension Data to rollout Wi-Fi in other areas of the City that are not covered.

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7.5. City of Cape Town

Public Wi-Fi was initiated in 2013 at Khayelitsha and Mitchell’s Plain as proof of concept. The project is implemented by the City’s Telecommunication Branch. Further expansion of the network is by DTPS allocation to the tune of R4.2 million .

7.6. Knysna

Knysna municipality deployed 200 Wi-Fi hotspots in the town of Knysna in most business districts and various surburbs to provide free Internet to citizens. This is part of KnysnaOn fiber optic project. The Wi-Fi hotspots use access points installed in municipal sites such as clinics, schools, and libraries spread across the area.

Further uses planned for the system include the installation of closed circuit TV cameras for public security and urban planning purposes. The municipality expects to save 4 million ZAR (0.56 million USD) in charges by network operator during the five-year contract period.

The Free WIFI project roll-out is being funded by the Western Cape Provincial Government as part of their broadband initiative. Free bandwidth used at the hotspots and backbone access to the various hotspots are being sponsored by Cloud Connect.

Each user gets 150 MB of fast, free and internet per day. Once the daily quota has been used up users can buy additional data vouchers at highly subsidised rates from their local grass-roots resellers like the corner spaza shop, etc

7.7. Ethekwini Metro

7.8. Dr. Kenneth Kaunda District Municipality

7.9. Tzaneen Network

7.10. Summarised Experience of Metro Cities

So far, reports on free Wi-Fi hotspots implemented by the municipalities and metro cities in South Africa show that most visited sites are for education and job seeking purposes.

Tshwane Metro City reported an increase on revenue collection because of deployment of free WiFi hotspots in public areas.

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This was attributed to encouraging households to update municipal bills in order for dwellers to have access to unlimited data bundles when using free municipal Wi-Fi hotspots. More households with updated bills means the municipality has more money to deliver quality services.

In Knysna municipal free Wi-Fi hotspots have boosted the municipality marketing drive and promoted local business as patrons access Internet for free. In other cities in the world, like Barcelona, Wi-Fi networks offer services for local government workers (emergency services, public safety, city surveillance cameras) and the public. The services allow the citizens to access municipality information and online processing.

8. WI-FI AND INFORMATION SECURITY ASPECTS

8.1. Wi-Fi Vulnerability

Wireless Internet security measures need to be taken when enterprise Wi-Fi is implemented. It is strongly recommended that public Wi-Fi network be separated from an enterprise (communications within a company). A common backhaul infrastructure is not a problem. A Wi-Fi implementing agent needs to conduct proper risks assessment and take necessary steps that include user education on do’s and don’ts on the Internet.

Precisely so, because risks to Internet users has increased exponentially due to the global uptake and usage of Internet services. The Internet access and associated security risks have become major concern for everyone.

Hackers have discovered that there is much vulnerability in the current wireless protocols, encryption methods, and in the carelessness and ignorance that exists at the user and corporate IT level. Hacking methods have become more sophisticated and innovative with wireless systems.

Users of Wi-Fi need to understand that cyber criminals can cunningly gain access to information and activities when using desk top computers, laptops, tablets or cellphones. Therefore precautioneary measures such as frequently changing and using unique complex passwords – combination of capital and small letters and numbers and checking the URL when filling out forms or submitting personal information on line, i.e. a padlock and https must be displayed to confirm that you are using a secured website.

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Wi-Fi users need to understand that they need to delete old Wi-Fi access points that have been used and should not allow the smartphone or laptop to automatically connect to public Wi-Fi. These are some of educational precautionary measures that wireless Internet service provider need to create awareness on.

Further information on cybersecurity is on the Department’s website: https://www.cybersecurityhub.gov.za/ .

8.2. Categories Of Threats That Can Be Associated With Wi-Fi

In general there are two categories of threats associated with Wi-Fi in a corporate environment, namely common threats and malicious threats.

Courtesy of Galela Telecoms, 2016

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9. DISCUSSIONS

9.1. Business Case

Up to now there is no coherent guide on how municipal free WiFi hotspots should be implemented. The SA Connect budget does not cater for sustainable and expansion model for municipal free Wi-Fi.

The mobile operators, Vodacom, MTN, Cell C and Telkom Mobile have not yet adopted a business strategy to adopt long range Wi-Fi technology to extend the capacity of their broadband networks services. Some of the reasons are technology related.

Therefore, at this point and time municipalities have to rely on their resources, reputable and experienced wireless Internet service providers as business partners.

9.2. Service Delivery Focus

Implemented metro and municipal free Wi-Fi, in almost all cases, is deployed to provide free access to the Internet. Wi-Fi networks need to be configured to enhance service delivery and customer satisfaction. Municipalities need to consider adopting technology to enhance service delivery, especially in energy saving, traffic management, electricity and water consumption metering. Wireless Internet service providers can deliver Wi-Fi, reduced costs on municipality telephone and Internet access bills, but may not be able to do more than that.

Project sustainability and constant evaluation need to be factored in since technology is fast evolving, Project Isizwe has indicated that the Tshwane Metro Wi-Fi hotspots will be supported by this NGO for twelve months and thereafter Tshwane Metro City will have to, probably, enter into new service level agreement arrangement with this organisation.

9.3. Quality Of Service

Size of established hotspots also differs and user experience has not been so good in some instances.

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9.4. Broadband Infrastructure

Municipal Wi-Fi is part of broadband. Therefore, it has to be understood within the context of national broadband plan. Currently, there are many initiatives taken by provincial governments, metro cities and the private sector to deliver broadband services. Private enterprises have laid thousands of kilometres of optic fiber that that runs along national and regional roads connecting towns and cities. This forms part of the national backbone infrastructure that passes through many municipalities and towns and in many cases do not benefit them. It is like electric powerlines that pass over the property that does not have electricity. Mthunzini town in KwaZulu-Natal is a gateway for a number of undersea cables, yet it does not have adequate access to Internet.

In order for those towns and villages to benefit from the optic fiber infrastructure that passes through them, this needs to be considered;

 The network operators need to incorporate those areas in their network expansion plans. In most cases, many of those are low income areas as a result are not in the plans of network operators who are expected to invest heavily on infrastructure with no guarantees on ROI.  The national government need to provide regulatory and funding incentives to network operators for them to invest in low income areas. The Universal Service Fund is to be used to promote universal access to broadband.  Some provincial governments have their own provincial broadband plans. Western Cape and Gauteng have theirs that they are funding. Some national departments have partially implemented their broadband plans like the Department of Higher Education that has connected universities in the country. So, when deploying municipal Wi-Fi or delivering broadband services this environment needs to be taken into cognisance – bulk acquisition of services.

However, it is important that all these plans align to national vision or else digital divide within the country will widen. Besides, the country cannot afford to duplicate efforts, scarce resources need to be used uneconomically.

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10. FUNDING

10.1. Challenges In Regard To Funding

Financing broadband to cover low income and rural communities is a challenge due to a number of factors associated with it.

Firstly, the national government has limited resources to realise some of its targets in regard to broadband infrastructure deployment. At this point and time, there is no national budget allocation for municipal Wi-Fi. Metros and municipalities supported by provincial governments, have to find ways of funding and sustaining such initiatives.

Secondly, telecommunications companies require huge investment to deploy infrastructure to cover low income areas. At the same time, network operators are faced with challenges in the appearance of free applications such as WhatsApp, OTT, that are not subject to regulation and have different revenue generating model.

Yet, shareholders require guaranteed return-on investment (ROI) in order to invest in the costly broadband infrastructure. The shift from traditional network technologies to IP networks is a game changer.

10.2. Possible Funding Options

10.2.1. Grant From The Department

This can be done only when Wi-Fi is budgeted for in the national broadband plan. This depends on the availability of funds and an executive decision. Thereafter, budget and procurement framework and process need to be developed and signed off at established NDP decision making structures. It is only then that implementation is possible.

The other side of the coin, is that deployment of municipal Wi-Fi is not so expensive as some people may think.

10.2.2. Funding from Provincial Government

When taking a decision on broadband rollout, Cabinet of the Provincial Government need to include municipal Wi-Fi in the IDP and LED plans.

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Municipalities need to be financially assisted with initiation, as it happened in Knysna, and must be empowered to take decisions on devising ways to sustain the projects.

Provincial Broadband Steering Committee or similar structure has to lobby and provide necessary advisory support to the municipality when needed.

10.2.3. Self-Funding By Municipalities

Self funding of such projects need to satisfy the requirements of the Municipal Financial Management Act. The municipality that is funding itself does not need administrative approval but projects need to be reported to the Cabinet of the Provincial Government and to the Department of Telecommunications and Postal Services in order to align to national plans and avoid duplication of efforts.

It is only when foreign funding is involved that administrative approval from National Treasury and regulatory authority will be required.

10.2.4. Use of The Universal Service Fund (USF)

In terms of Section …… of the ECA USAASA Board is tasked with management of the Universal Service Fund that is used to achieve goals of universal access and fund aligned projects.

Universal Service Fund has been used before in funding wireless broadband at EMalahleni (Eastern Cape) and Msinga local municipalities. The Fund paid for expansion of 3G network to a successful bidder that was MTN. This was not a favourable solution as it proved very expensive, uncompetitive and not carefully crafted.

Since municipal Wi-Fi forms part of national broadband plan, USAASA has to consult with the Department in regard to these projects.

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11. FUNDING STRATEGIES FOR MUNICIPAL WIFI

11.1. Overview

Free WiFi Business Case

Citizens Absorb Municipality National Govt. Private Sector Costs Subsidises Subsidises

Project Scoping & Project Scoping & Project Scoping & Identification of Public Areas To Determine Determine Determine Capex & Opex Capex & Opex Capex & Opex be Served

Council Decision on Bizness Case And Universal Where should Money Telecoms as Bizness Application For Service Come From Case Subsidy From NT Obligations on Licensed operators Determine How Should Service Public Awareness Provider Be Paid. Campaign On How is Revenue Collected Set Up Systems

Tender Process

Consideration of Regulatory Framework Implementation & QA on Infrastructure Deployment

Service Delivery Tender Process Monitoring

Implementation 27

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11.2. Citizens Absorb Costs

The Municipality can make business by providing ICT services. The Regulations allow municipalities to provide ICT services. The ICT services provided to citizens can be similar to water and electricity. The services can be expanded to other government institutions like Department of Education, Health for local schools, clinics, hospitals, business etc.

After all, governments require innovations to generate revenue at this time when developments like Internet currency are reducing tax revenue that sustain government services to citizens. Provision of ICT services is good business for municipalities when well crafted. However, public consultations are important for municipalities when planning to engage in such ventures.

This option requires that the municipality develop a business plan that takes into consideration size of the market and its capability to sustain business. The Town Council must endorse the business model. Municipalities do not need to employ a big labour force to run a successful self funding municipal Wi-Fi network. The work should be done by the service providers, and the municipality must manage the contract and service level agreement.

11.3. Municipality Subsidies

Well to do municipalities can divert some funds to the free municipal Wi-Fi projects without much hustle. Sustainability becomes the key challenge. The risk will be the changing of executive leadership who come with new strategies and business models.

11.4. National Government Subsidies

South Africa Connect is a national government program focusing on expanding of Internet coverage to all parts of the country. It is a funded program, however, municipal wi-fi projects are not on this agenda per se.

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11.5. Private Sector Investment

Public – Private sector partnership is key in national infrastructure development. The level of success is dependent on the overall regulatory environment. The Municpality, when developing its business case, need to take into consideration this aspect not only in the ICT sector.

11.6. Universal Service Obligations

The government may impose universal service obligations that require licensed operators to support municipal Wi-Fi hotspots. This arrangement needs horse trading on the side of government when making prime radio frequency spectrum available to operators. This is not an easy task to undertake and may not happen now.

12. CONCLUSION

Municipal Wi-fi is a good business case for municipalities if properly implemented. It requires municipalities to also engage with local depts. of education and health who have a large number of potential users. This can actually lower the operational costs and use resources economically.