Is wireless internet access a public good? Is this something that local governments should provide?
A 100% public good is something that many people find to be desirous but no rational private firm would produce and offer for sale. There are two basic reasons for this. 1. The goods are non-rival (my consumption does not reduce the amount you consumer). 2. The goods are non-excludable (once produced, it's very difficult to keep others from using the good). Since there are varying degrees of excludability and rivalry, how does one decide whether a good has enough of these qualities to be classified as a public good? One way is to see if there are private firms offering the product. WiFi does not pass this smell test as Kip Esquire directs us to Google:
Online search leader Google is preparing to launch a wireless Internet service, Google WiFi, according to several pages found on the company's Web site on Tuesday.
Analysts have voiced concerns that Google could extend itself too far beyond its core business, while acknowledging its vast financial and engineering resources could produce results.
"Becoming a service provider would be quite a stretch for Google, but considering the billions of dollars Google could throw at the problem it could become a reality," Ovum analyst Roger Entner wrote in the wake of the Business 2.0 article.
Google share prices have been flat since August. In any case, that Google is considering offering wireless internet is a red flag that WiFi is not a public good.
Here is a previous post on this subject.