Loan sought for Wi-Fi network
BYLINE: Timothy C. Barmann, Journal Staff Writer
The governor's budget proposes that money be borrowed to provide a high-speed statewide wireless system.
Governor Carcieri says he wants the state to back a $28.5-million loan in order to build a statewide wireless network that could be used by businesses, schools and government agencies.
The governor's budget proposal includes a provision that would allow the state's Economic Development Corporation to borrow the money needed to build the Rhode Island Wireless Innovation Networks, or RI-WINs.
The EDC, along with an affil iated nonprofit company, the Business Innovation Factory, have touted the network as an important economic-development tool. It would be the first such wireless network to provide high-speed Internet access throughout an entire state, they say.
RI-WINs users could be companies or government agencies that need to communicate with field representatives. It could also be used by companies that have some type of application they want to test on a statewide wireless network.
They will pay some type of fee to use the network. RI-WINs is not supposed to be a Wi-Fi network for consumer use, such as those being developed in Philadelphia and San Francisco.
The project began on a pilot basis in 2005 with test sites established in Providence and Newport, with Foster to be included as well. Among the test programs was a port security demonstration, financed by the U.S. Department of Homeland Security. It was designed to allow government agencies and emergency personnel to share and distribute real-time information about activity in Narragansett Bay.
Now, the EDC wants to roll out the network statewide. In order to do so, it plans to borrow the money through private-sector funding, said Andrew S. Cutler, a spokesman for the EDC.
"The [venture capital] community, the banking community - they're not going to just write a check for this program for $28 million sight unseen," Cutler said. "They want to know the State of Rhode Island stands by this initiative."
RI-WINs said it has worked out a nonprofit business plan, with the help of Altman & Vilandrie, a Boston telecommunications firm. The plan demonstrates, according to RI-WINs, that the project can be financially self-sustaining.
It will take 12 to 18 months to build the network, and three years for the project to break even financially, RI-WINs said.
The total cost is $28.5 million, including the initial construction of the network, financing costs and expenses through three years of operations. That is up from an earlier estimate of $20 million.
The budget proposal calls for the state to make up any debt payments beyond the revenues taken in by RI-WINs.
The Business Innovation Factory said that the Newport County Chamber of Commerce and its board of directors had joined a consortium of local companies and institutions that support the idea behind the statewide network.
The Business Innovation Factory said other new supporters include the Community College of Rhode Island, Rhode Island College, FM Global, Rite Solutions, UnitedHealthcare, Providence Warwick Convention & Visitors Bureau, the Steel Yard, Hasbro, Tango Pix, ReBrand 100 and Equity National.
tbarmann@projo.com / (401) 277-7369