Citywide Wi-Fi spending could hit $3 billion

More than $3 billion may be spent during the next four years to build and operate public wireless networks for U.S. municipalities, according to a new research report by MuniWireless.com. Spending will exceed $235 million in 2006 – significantly higher the forecast of $177 million made last year. For 2007, spending will reach $460 million, compared to last year’s estimate of $406 million. In 2008, U.S. spending will grow 105 percent to $940 million, and 2009 spending will increase another 87 percent to $1.8 billion. Among the other research findings:

• Public safety, building inspection and public works are the three most prevalent applications for public wireless networks.
• Large cities (those with a population of more than 500,000), which currently account for about one-third of all municipal wireless spending, will see their share of total spending grow to 40 percent by 2009.
• Approximately 44 percent of all 2006 expenditures will go toward hardware and packaged software products, with the remainder allocated to services such as applications development, training, systems design and integration, and consulting.