Mr. Goldman, are you aware -- I asked Mr. Phillis -- of a major statement made by EarthLink on November the 16th?
Perhaps might you clarify which statement perhaps you're referring to?
I'll read it to you, because this is very significant, and I think that both of you in the 85 12/11/07 - TECHNOLOGY - RES. 070756 positions you're in should recognize that question. "EarthLink considers strategic alternatives for municipal wireless business. "Atlanta, November 16th. EarthLink today announced that it would begin a process to consider its strategic alternatives for its municipal wireless business. "After thorough review and analysis of our municipal wireless business, we have decided that making significant further investments in this business could be inconsistent with our objectives of maximizing shareholder value, said Rolla P. Huff, EarthLink President and CEO. "Accordingly, at this time, we are considering our strategic alternatives with respect to this business, Huff added. EarthLink will seek to work closely with the municipalities in which it has operations 86 12/11/07 - TECHNOLOGY - RES. 070756 as it considers these alternatives. The net book value of the assets attributed to EarthLink's municipal wireless business is approximately 40 million."
Frankly, no, it does not trouble me. As was testified by the City Solicitor, as well as Mr. Phillis and as I myself noted in my testimony, we have a ten-year agreement with EarthLink, and any entity assuming operational control of the network assumes the obligations of the network agreement. So everything that I would have to say on that subject would echo the testimony of Solicitor Diaz and Mr. Phillis.
Tell me, we have how many signed up in the program that you just described? 800 people?
615. EarthLink would have to be nuts to hold onto a system that they spent $20 million to build with 600-plus customers. Do you know how many customers they have that are not part of that program which you said to my staff that you didn't know?
I do not have the specific information. As was discussed before, I do not have the specific information for the same reasons that were mentioned before as to the specific number of EarthLink retail customers in this network.
How could you get into a deal and allow that to be privileged? How do you know your success? If you don't know how many customers have signed up to Wireless Philadelphia, you do know the number that you just discussed. I think it's amazing to me. How do you know your value or how do we know your value if you have no clue 88 12/11/07 - TECHNOLOGY - RES. 070756 on how many people have subscribed? The churning in and out, I understand it's incredible. People are in for a week, they're ready to throw the equipment out the window because they can't get a signal in their property. You don't know how many people have signed up to Wireless Philadelphia?
We are provided with general information about these subscriptions via EarthLink according to the contract and according to the discussion that the Solicitor is certainly more qualified than myself to give you, and as mentioned, in the third year of the contract, when the network agreement changes for EarthLink to provide to Wireless Philadelphia a revenue share, then we will be in a different position vis-a-vis customer service numbers.
What is "general information" on the number of customers? Give me an example of that. 89 12/11/07 - TECHNOLOGY - RES. 070756
For a $20 million investment, several thousand? If you were the CEO -- if I were the CEO, I'll put it that way, of a $20 million investment and I had less than 3,000 subscribers, I can understand why they have had a change at the top there after reading the mission statement. I'd be troubled. So let's hope that everybody jumps on board, but when you see a lifetime deal for 14 bucks out of Verizon and in Comcast and the reputation that EarthLink -- not any advertising right now, the reputation that they have is not good and I don't know how many people would sign up for this service knowing the problems that are associated with it. 90 12/11/07 - TECHNOLOGY - RES. 070756 Myself, Channel went to various hot spots, couldn't get on, even experts, impossible. Love Park, couldn't get on. I agree with you. I know a little bit about technology, just enough, that there are bumps, as you call them, in the road, but if a person goes, a visitor to our city, to a free hot spot like Love Park and wants to check their e-mail and just slams their laptop shut and walks away, not a good thing for Philadelphia. Thank you, Mr. Chairman.
I'd like to give this to the stenographer for the record, the EarthLink press release, please.
One other hope when we crafted the legislation was linking hopefully senior citizen homes, those on that side of their lives. Of the 613, can you speculate what number 91 12/11/07 - TECHNOLOGY - RES. 070756 might be indeed in that population? And if you're not able to --
I would just have to say at the present time, it's a small number, but I can tell you that myself and my organization have spent considerable effort in trying to address this, and we're seeking funds in trying to create programs along the lines of what I explained before to address this population, because you are absolutely right, that Internet access for the senior population is essential.
Okay. So when you submit the number of 16, if you would, break it down and break out the various categories that they represent.
A few more. You've spoken about linkages with public and charter schools in low-wealth areas.
And you 92 12/11/07 - TECHNOLOGY - RES. 070756 stated the barriers that have taken this to scale. Well, let me say this, the barriers that have impeded achieving the mark of 1,000 for this year.
Yes. Drexel University, as a matter of fact, is a major user of the network and has provided to this effort one of the major contracts. Drexel provides wireless Internet access via EarthLink across the City to all of its students. I believe faculty as well, although please don't quote me on that.
Okay. Let's talk a little bit about MBE/WBE participation.
And help me remember, because I don't, an equal opportunity plan. What we know is this, 93 12/11/07 - TECHNOLOGY - RES. 070756 that we wanted 50 percent of the $12 million in start-up services to go to minority and women-owned businesses. And so tell us where you are to date with MBE/WBE participation.
Where we are with MBE participation, the numbers that I have provided, which are reviewed on a quarterly basis by a diversity oversight committee, which includes the Director of the Minority Business Enterprise Council, the Managing Director of the City of Philadelphia, the Board Treasurer for Wireless Philadelphia and others, the most recent numbers that we have are for Quarter 2 for 2007. So that would be June of 2007. My understanding was that the target for MBEC's spend was 30.75 percent. That's the number that I have been working with since I have been involved.
Women or 94 12/11/07 - TECHNOLOGY - RES. 070756 minority owned?
I'm sorry. That was the total. The total target MBE spend was 30.75, and the total spend as of June 30th of 2007 was 88.49 percent. So we were really quite good in terms of that expenditure, and that is one area where EarthLink, is one among many areas, where EarthLink has performed well.
If you do not have the information at this hour, of that 88.9 percent, we'd be interested in knowing the number of contractors.
The breakdown of PR firms. We want everything from soup to nuts, all 95 12/11/07 - TECHNOLOGY - RES. 070756 categories. We want to know how we get to 88.9.
Would you like me to submit that as part of these other items to submit?
And we would ask the same for WiFi Philadelphia as well.
Absolutely. I'd be more than happy to provide that information.
So I think that is it for me, Mr. Chairman. I got another question. When you submit your information on the community-based organizations, you will let us know -- I want us to be clear -- of the 30 where they are, whether or not 96 12/11/07 - TECHNOLOGY - RES. 070756 they're EARN centers as you just described.
Yes. Essentially, what we're looking for here is, DPW has done a lot of work in geomapping, if you will, areas in our city where you have low wealth, high pregnancy, juvenile delinquency, at risk associated with young people, and in an attempt to work smarter, we want to make sure that those areas where young people are at high risk, that the opportunities like WiFi are connected in the world where they are.
Councilman Rizzo. 97 12/11/07 - TECHNOLOGY - RES. 070756
Mr. Goldman, in reference to the initial commitment, if you didn't know about Wireless Philadelphia right now, I don't think EarthLink has spent any money or made an effort to try to get additional subscribers to sign up. Could you tell me what their commitment was for the promotion of this WiFi and why it is basically unadvertised at this point, completely unadvertised?
Well, again, I am not qualified really to speak on behalf of EarthLink. All I can tell you is that my understanding -- I am unaware of a specific --
Well, let me interrupt you. You mean we put a deal together and we didn't establish some parameters on a budget to promote it? I just can't imagine that -- some of the things that have occurred in getting this deal going amaze me, not sharing information on how many people are 98 12/11/07 - TECHNOLOGY - RES. 070756 customers, not having a budget for advertising. I can't remember the last time I saw anything out of EarthLink about this project. So go ahead. Excuse me for interrupting you.
I just want to be clear the question that you're asking me. I'm sorry.
The question is, is there an advertising budget that EarthLink committed to in putting this deal together and is it a signal that there is a significant problem based on the statement that I read earlier released by EarthLink on November the 16th? There is no advertising budget. There is no advertising at all about signing up for this program.
I don't even think the average citizen knows what it would cost to be a customer.
The answer to the 99 12/11/07 - TECHNOLOGY - RES. 070756 question is that an advertising budget is not part of the management or network agreement, a specific number. So the answer to that unfortunately is no, there is not. And unfortunately, I am not in a position to answer for EarthLink as to their specific strategy as to the marketing of their retail product. EarthLink is responsible for the marketing of these products that are available over this network to their own retail customers. One thing I can tell you is that we did forge a side agreement with EarthLink assuring that Wireless Philadelphia's message of digital inclusion and participation in digital inclusion be part of advertising that goes forward, but the agreement does not include a specific statement or a specific target on a monthly, quarterly, annual basis related to a required dollar amount spent.
Well, I 100 12/11/07 - TECHNOLOGY - RES. 070756 think it should have been, because this project can't be successful without reaching out to people to sign up for this. And I don't think it's a good sign, and I've been told that by others. It's not a good sign that there is no 8 advertising of this product. I don't know how you're going to sell EarthLink's Philadelphia wireless service without any advertising to get beyond 3,000 subscribers, which I think you have to admit is not good.
I actually did not say the number 3,000. I said several thousand. And I'm just not qualified to comment to you on what their expectations are for their numbers vis-a-vis a retail subscription.
Again, that proves my point, that maybe this was not a good idea. If we allowed EarthLink to come in here, build this system, use the name Philadelphia -- maybe we need to get Philadelphia's name out of it and let it 101 12/11/07 - TECHNOLOGY - RES. 070756 just be EarthLink wireless network. I think it's a disgrace that this city allowed EarthLink to come in here or any vendor without providing information, without providing an advertising budget, without all of the things that we're identifying today, and I'm sure we'll identify more. I think that it's going to tarnish our city if this project fails. And I don't know what you mean by several thousand. And just the way you're spinning it here today, tell us the number if you know the number. Several thousand means to me a few thousand, maybe two, three thousand people. I don't know. And I think it's a disgrace that EarthLink wouldn't confide in you. Them not being here, they won't be candid and tell us. They should be proud if they had 60. What did they say that they were looking at, 80,000 subscribers? Is that what the number was when they came in here and did the dog and pony show? How many 102 12/11/07 - TECHNOLOGY - RES. 070756 subscribers were they looking for?
I'm sorry. I wasn't in the position at that time. I don't know the specific number that was stated in the Council hearing.
If I might just say in response to that, I do think it's important to just state that with all due respect, I certainly understand many of the concerns that you raise, but I do think that we have -- as was testified to by the Solicitor and by Mr. Phillis, this is a complex contract. It's a very highly detailed contract, and we have, I feel, good protections in the contract. And so I feel very confident, as I stated and as I stated in my testimony.
And to take over a system that would cost many million dollars to give Health inspectors and L&I inspectors the ability to work hands-free, to take on a $20 million 103 12/11/07 - TECHNOLOGY - RES. 070756 investment and to suggest that that's going to be the savior of this program because we have a few dozen inspectors that are going to use this system, to me to spend millions of dollars to accomplish that or try to say that this is an alternative use for the system if EarthLink decides to give it back to the City or to some other private entity, to me that's funny. To think that we're going to take a system that would probably cost many, many millions of dollars a year to operate, where we could probably again go to a private vendor and accomplish the same thing. It would be better just like we did many years ago in the City, before you put the technology on top of all the light standards this go-around, you remember or I hope you remember or at least you were told that there was another wireless network in the City that was abandoned in place prior to this one. You're aware of that, correct?
I have heard of 104 12/11/07 - TECHNOLOGY - RES. 070756 that.
Thank you. Mr. Goldman, I have a question for you about fundraising, but I keep thinking back to the original hearings and Philadelphia had carved out its mission in dealing with this was the digital divide, to accomplish as much digital inclusion as possible. To my knowledge, we are talking it and walking it. Most people are still talking it. Whether we're successful or not I think still remains to be seen, but I think everyone is realizing this is even more difficult than anybody had thought. I'm assuming completion. I have every confidence in the testimony of the Solicitor that we will continue to be cost free in terms of the build-out, and if we are able to get millions of dollars in savings from having employees not have to buy accounts from a private provider, 105 12/11/07 - TECHNOLOGY - RES. 070756 that's above and beyond anything we originally anticipated doing. We basically were getting enough money from this deal to fund your office.
Pay our utility bills, our share of it, hoping they would go down in the future. But the purpose of funding your office and having enough money to do that was to be able to raise money from the foundation, non-profit sector, government sector, to the extent that other governments or our government was willing to contribute, and also from individuals, whether they be rich or poor. I am sure this hasn't been made easier by all the questions that are out there every day about build-out and service levels and all that, but could you give us a brief report? I mean, you come from a fundraising background and one where fundraising wasn't real easy either for the cause you were involved with, at 106 12/11/07 - TECHNOLOGY - RES. 070756 least your most recent one, and you did a great job at that.
Could you kind of give us a snapshot of today where Wireless Philadelphia is with its fundraising and also how you feel about the chances for the future or your success for the future with that, given that we may not have EarthLink but we'll have a system. I think we all have to assume that, particularly based on the legal analysis that was presented to us.
Right. Well, thank you for those comments. I appreciate that, and I guess I have to chuckle in response to your comment that fundraising in the current environment isn't exactly the easiest thing to do with all the questions, but nevertheless, it is the responsibility that we have, and so here we are, and we're continuing to go about that in as aggressive a way as we possibly can. We're reaching out 107 12/11/07 - TECHNOLOGY - RES. 070756 to individuals, foundations, corporations and the public sector in this very building. Just last week we had the major donation of 447 refurbished laptops from Shier Pharmaceuticals of Chester County. Tomorrow morning we'll be announcing another donation of refurbished computers from Rohm and Haas. We continue to be reaching out to the corporate sector for hardware, as well as direct cash donations. The William Penn Foundation has provided our largest grant so far of 250,000 over two years, and many other foundations and a few corporations, PNC Bank notably, have also provided funding for this. Our efforts to reach out to individuals are just getting started, and so I do have confidence that the community is recognizing that this, as many others before me have said and as people behind me will also say, that this is absolutely one of the vital needs our community is facing. It's one of the 108 12/11/07 - TECHNOLOGY - RES. 070756 vital needs that low-income families, students and others face, and I do feel very, very passionately, myself and my team and the members of our Board and Advisory Committee, we are totally dedicated to the mission of this project, and part of carrying out the mission of this project is speaking passionately and convincingly to people who have resources to contribute to it. It's a momentum that needs to be built. It's a momentum that is building, and it is something that I do feel confident in. I think that we have done an extraordinary amount of work so far in a relatively short time, a little bit more than a year. We have roughly $1 million that we have generated in new monies that are committed to this project. Many more proposals are pending in foundation, corporate and public sector, particularly at the state level, and I do feel confident. Again, we have an awful long 109 12/11/07 - TECHNOLOGY - RES. 070756 way to go, and fundraising is the kind of thing that you need momentum and you need to sort of get your wagon going down Main Street, but I do feel very confident in our ability to continue to generate financial resources to support this cause, because the community recognizes it as a need and the community recognizes Philadelphia's leadership in addressing this social cause.
I will start off where you finished, Philadelphia's leadership in stepping forward on this issue. I have to put on the record and I sat here for a long time thinking not to, but we are at philosophically different places, and if we're serious about bridging the digital divide, then it means that we have to take some chances, but take what I call calculated risk. 110 12/11/07 - TECHNOLOGY - RES. 070756 (Applause.)
And I wrote notes here, because it hits me here as well. Sometimes it requires -- well, Philadelphia is venturing into new territory and I learned along the way 8 months ago in listening to our City 9 Solicitor and those of us on Council that 10 even this arrangement is unprecedented. 11 So as we're expecting you'll manage the 12 bumps and right now it's across -- but 13 Philadelphia is across that, but 14 Philadelphia was one of the first, and 15 with anything new, when you're moving to 16 shift a paradigm, then you got to figure 17 out the wrinkles along the way. And when 18 I hear that there has been what we had hoped for and expected and, that is, attracting the attention of the foundation community and others that get it, if you're doing that in the way you just described, then that's an affirmation that doing this was indeed a good and right thing to do. 111 12/11/07 - TECHNOLOGY - RES. 070756 (Applause.)
This is not my area of expertise, but Verizon has many companies that have gone around the country, have lowered rates as soon as there was an announcement that there might be unity WiFi, and that's been commented on in different cities all over. Verizon, I think everyone knows, they're not a DSL company in the future. Their massive investment is in fiberoptic. They also pretty much have a business plan to do the suburbs first and then move into the City. I noticed in the small print this lifetime, that when they no longer offer DSL, the lifetime offer is over. At some point they are not going to be offering DSL. They're going to be doing fiber. Fiber is phenomenal, which it's what everyone wishes they had into every building, residential and otherwise, in their city, but it is much more expensive 112 12/11/07 - TECHNOLOGY - RES. 070756 and it is more along the lines of cable or cable plus with the broadband. If I were being asked by somebody in very lay terms, if I sign up for this service, it may not be EarthLink, but whatever the service is --
-- our City wireless service and I know the speed that AOL was charging $24 a month for at dial-up and I know the speed of Verizon's half speed DSL, or whatever it is, where does this fit in? If I'm only surfing the net, doing e-mail, which is what most people use it for -- and I know there's other applications that get more intense levels of this -- how is this service for me speed-wise? Speed is what everybody --
It's broadband service at one megabit per second. So it's a good bit faster than the lowest level DSL, it's quite a bit faster than dial-up, and it's probably not as fast as 113 12/11/07 - TECHNOLOGY - RES. 070756 some of the higher end services that you mentioned that are offered by other companies.
Would the person doing what I just described, basic use of the computer --
Basic everyday uses would be absolutely -- would absolutely be easily obtained through this service at that speed.
Mr. Chairman, would that support streaming audio, that speed?
I know there's other things that are more robust in terms of needing --
Yes. To my knowledge, streaming audio would be -- 114 12/11/07 - TECHNOLOGY - RES. 070756 although I have seen the network used for streaming audio, the speed is not as good as higher speeds for streaming audio.
So if you wanted to listen in to an all-news station, like KYW, you'd have difficulty doing that?
I think -- I personally have utilized the service for that and I have observed it being used for that service, although higher speed would provide you with a better connection for the kind of utilizations that you're referring to.
When EarthLink came in here, they indicated that one of the obstacles also would be that the service would not work above the third or fifth floor in Center City. When will that be overcome where our constituents in some of the high-rise properties would be able to become customers?
I don't know the 115 12/11/07 - TECHNOLOGY - RES. 070756 answer to when that service will be offered, but my understanding is that as the network continues to be built out, that is an issue that will be addressed.
So right now in Center City or other areas of the City that may be in a high-rise configuration, we're limited to what floor?
It depends. It depends. The higher floors in higher rise apartment buildings without a direct connection to fixed wireless would not probably be able to be serviced, but it does depend and it varies building to building and according to a variety of other factors as to why that service is or is not offered. I see my friend has joined me over here, so maybe a more detailed answer to that one may be coming.
I thought maybe I could add a little bit enlightenment to that. First of all, the EarthLink, when it was originally proposed, was a 116 12/11/07 - TECHNOLOGY - RES. 070756 symmetrical one meg download speed and upload speed. Since most of us do most of our work through a download process, where we're really not uploading into the Internet as the average use that you explained, the current thing is they get about 1.5 meg on the download, which is almost twice as fast as the DSL advertisement that you have on your desk there. As far as servicing the high rises, you can reach the higher floors. Third floor was what was originally proposed in the contract, but just like cable and many other things, the distribution within a high-rise building is one of the things where EarthLink would distribute the signal to the building and it would be redistributed within that building so that you could have total use within there, but that's up to the building ownership as to whether they want to approach it that way or not. 117 12/11/07 - TECHNOLOGY - RES. 070756
But that would not be wireless? In other words, the way the system is designed now, if you have a wireless laptop, you should not need any wires or any modems or anything in your home, correct?
If you are outside, you do not need any CPE equipment for the wireless network that we have, you're correct. If you're inside, it is recommended that you do take a piece of CPE equipment or a signal booster type of an arrangement. And that's one of the changes that Greg mentioned earlier as to how the provisioning process was being done by EarthLink. In the early adoption as they rolled this system out, they did not require people to buy a piece of CPE equipment like you do with DSL or with cable. They have revisited that and if you sign up for the service today and 118 12/11/07 - TECHNOLOGY - RES. 070756 you're not signing up through the actual Internet on your laptop where you're actually using their site, you have to buy a piece of CPE equipment.
In other words, because the signal doesn't penetrate the structure, you need to have the signal enhancement to get your laptop or device to work?
Final question, what's the monthly rate currently for WiFi customers, the monthly rate?
It's 6.95. It's still a promotional rate for everyone, including digital inclusion customers. It's 6.95 a month, although we don't know exactly how long that promotion will last. When that promotion ends, the base 119 12/11/07 - TECHNOLOGY - RES. 070756 price will be roughly $20 per month for retail customers and 9.95 per month for digital inclusion customers.
That's very encouraging, because that's exactly what is in testimony when we've had these hearings April '06.
So it's encouraging to note that you all have been able to honor the initial thinking around this initiative. I thank you for your testimony.
Before you begin, do you have any Board members that are here from Wireless Philadelphia? Just stand and be recognized. 120 12/11/07 - TECHNOLOGY - RES. 070756 (Board members standing.)
We do appreciate your service and appreciate you coming out to the hearings. Could you identify yourself for the record and decide who is going to go first?
Sure. My name is Alexis Brown. I'm the Executive Director of Community Women's Education Project.
Tony Alvarez, Co-founder and Community Relations Director of Mariana Bracetti Charter School.
As I stated, I'm the Executive Director of Community Women's Education Project. We were the recipients of laptops for the clients 20 that we serve, which are primarily low-income women in the Kensington community. We provide educational services for women that have dropped out of school, for out-of-school youth that are trying to get a GED, move on into 121 12/11/07 - TECHNOLOGY - RES. 070756 job, move on into post-secondary education. So what has been a value for us, in Kensington several of the households do not have a computer. Several of the women that visit our site do not have a computer. One of the programs that we specifically targeted is for the adult diploma program where the women have to perform about 160 tasks and those tasks are research related. In order for them to complete that and get their high school diploma, which takes about months, they need access to the 16 computers, and they come to our site for 17 that access. It's through this 18 particular program that we are able to give these women the laptops so that they can do this work at home. And not just for them. It's for their children. So their children also have access for the young children that are in school as well. The other way that these 122 12/11/07 - TECHNOLOGY - RES. 070756 laptops are to be used are for women that are in our family literacy program, that are also residents in a residential facility also located in Kensington and they do not have access or do not have computer, do not have access to a computer. So we are awarding them the laptops so that as they are awarded permanent housing, they will be able to use these laptops in their own facility. And they range in age from about late teens to the middle 30's. So they have children that are also in school. And one of the problems they have is their children have no access to the computers as well to complete their homework assignments and things of that nature. So that has been a significant impact for us for the ladies there in our center.
And all of 123 12/11/07 - TECHNOLOGY - RES. 070756 those families have had the option to benefit from --
We've targeted. Because it's 20. So we had to target. So that's why we chose actually the adult diploma program, as I said, because that's a heavily research-based program. So they use the computers even more than the other pre-GED, GED participants.
So just a little bit about our school. We are a science and technology charter school. We service predominantly the low-income Latino student population, Grade 6 through 12. Our Wireless Philadelphia sign-up center opened a couple weeks ago on November 29th, and our center is completely student operated under adult supervision. Our decision to launch this partnership with Wireless Philadelphia was made with a dual purpose in mind. First, we were able to turn this 124 12/11/07 - TECHNOLOGY - RES. 070756 opportunity into a service learning course by training our high school engineering club students on this technology. Now they're serving the community and advancing their knowledge on this emerging technology. Secondly, as a community school, we are now able to target our low-income families and neighbors and put affordable and quality information technology into their hands. For some of our families that are unable to afford computers, we provide them computers through our partnership with the School of Engineering and Applied Sciences at the University of Pennsylvania. Although our relationship with Wireless Philadelphia is still in the early stages, it's been a tremendous success so far and there's a buzz in our community.
You're happy with Wireless Philadelphia? 125 12/11/07 - TECHNOLOGY - RES. 070756
Thank you for this opportunity. My name is Aissia Richardson. I serve as an Advisory Committee member of Wireless Philadelphia and I'm also a WiFi user and I'm an avid supporter of digital inclusion. I do have my testimony prepared. There have been issues with the technology around WiFi, but the premise behind low-cost wireless Internet access is one that the City of Philadelphia was correct in taking a leadership role in 126 12/11/07 - TECHNOLOGY - RES. 070756 municipal wireless Internet service, and I'd just like to caution Council to measure the success of Wireless Philadelphia on the quality of its programs rather than the quantity of the members that have signed up on a network that really hasn't been fully installed in the entire City. And as Councilman O'Neill stated, in LA not one person attended committee members regarding WiFi services in LA, but Wireless Philadelphia has built tremendous community support around WiFi in Philadelphia. And as you know, the City of Philadelphia has the sixth largest population in the United States behind New York, Los Angeles, Chicago, Houston, and Phoenix respectively. Our city has the lowest median household income at $32,000, highest percentage of individuals in poverty and lowest amount of residents over the age of 16 in the labor force, 58.9 percent of the sixth largest cities in the country. 127 12/11/07 - TECHNOLOGY - RES. 070756 The poverty rate in Philadelphia County has increased by 1.6 percent since 2000, moving from 22.9 percent to 24.5 percent. While the median household income saw a decline since 2000 in Philadelphia County, the race/ethnicity group that went through the most dramatic decline in household income was the black or African-American race/ethnicity category. This category went through a decline of 17.3 percent since 2000. And in 2000, 55 percent of the residents in just North Central Philadelphia, which is primarily African-American, lived 200 percent below the poverty line and only percent had 18 graduated from high school. 19 And I just wanted to give you those statistics, because many employers only accept applications for employment online, even for jobs that don't require computer skills. While I believe this is an unfair practice that the Labor Department needs to address more 128 12/11/07 - TECHNOLOGY - RES. 070756 effectively, the reality is that many low-income Philadelphians do not have the resources or tools they need to access positions they may be eligible for. The low-cost wireless service and the hardware needed to access the Internet that Wireless Philadelphia's digital inclusion program provides can make a real difference in the lives of participants. In my opinion, if you're not online, be prepared to be left behind. Every Philadelphian regardless of income cannot access City services, state or federal services online. If that's true, then the poverty rate will continue to increase. Digital inclusion is part of the solution, and your support of Wireless Philadelphia will ensure that the solution will have a chance to be more successful. Thank you.
Thank you. Sir? 129 12/11/07 - TECHNOLOGY - RES. 070756
My name is Hercules Jones and I'm here to testify about the usage that I have received from Wireless Philadelphia and EarthLink, to testify about any problems and what the system has done for me.
My name is Ingrid Jackson and I also am a customer of Wireless Philadelphia. I enrolled in the program because I heard an interview on the radio about the digital inclusion program and I was very excited about it. The next day, as a matter of fact, I contacted them, and they referred me to Wireless Philadelphia, where I immediately went to be interviewed and signed up for the program. And I'm very, very pleased with it. It's helped me find another job. Before that time, before I was a customer of Wireless Philadelphia, I would have to go to the Free Library and wait for an assigned time to use the computer there, and you're only given approximately an hour 130 12/11/07 - TECHNOLOGY - RES. 070756 to do your research or fill out an application online. So it's proved quite beneficial for me personally, because I can do this in the privacy of my home. I have a used computer that a relative gave me. When I signed up for Wireless Philadelphia, they sent me my kit. I was able to connect it myself. I'm not technologically advanced at all in any way, but it was simple enough, clear enough to connect my computer to the components that they sent me through the mail. When I first tried to get online, it was a little spotty, but I just -- I'd come back later on and be able to get online, and I'm a hundred percent satisfied with Wireless Philadelphia.
Do you 131 12/11/07 - TECHNOLOGY - RES. 070756 want to add anything to what you originally said?
Yes. What she was talking about about the Free Library is true. The time there is quite limited. Having the service in your home allows you to do a lot of things such as research, look for jobs, look for education or funding to get education. You can keep in contact with relatives that also have Internet access. You're able to see things around the world that you didn't see before, communicate with other people around the world that you may never have been able to do without Internet access, as well as check your e-mail and read books. And the streaming audio is not that bad. Streaming video is not that good, but the streaming audio is not that bad. The service is great in the daytime. Sometimes it bogs down at night because more users may be on it, and routers can only support so many 132 12/11/07 - TECHNOLOGY - RES. 070756 computers at one time. I was surprised how fast it reached my neighborhood and how fast I was able to get connected once I contacted Wireless Philadelphia, went to their meeting, understood what I was about to receive in the mail and what was going on with my part to get into the connection. Actually, I got connected the next day without the box, but once I got the box, the service was much better. There were a couple outages, but they fixed them right away, and all of the complaints that I have made to EarthLink were addressed immediately without any problems. I haven't experienced anything where they were unresponsive or unwilling to resolve any issues that I've had. And when I contact Wireless Philadelphia about any issues, they were quick to respond to them and very supportive of what I needed. I'm pretty pleased with the service myself. It is way better than 133 12/11/07 - TECHNOLOGY - RES. 070756 dial-up, because dial-up you wait all day for a web page.
No. 7 I'm a pretty Internet junkie, so I'm on it all the time.
And I have been able to get connected mostly every time. I go to the Love Park, also in Rittenhouse Square and a few other places that I've picked the signal up at. So I don't know what happened to other people that can't get connected.
I don't go to a city without checking out hot spots, though, before I get there. I'm not paying anybody for something I can get for free.
How did I hear about it? It was -- 134 12/11/07 - TECHNOLOGY - RES. 070756
Let me ask more of a specific question. The SEPTA bus ads, over the radio, through a community center? What was the post point?
No, no word of mouth at the library. I saw an ad in the paper and I was aware that the Mayor was trying to initiate something like this from newspapers and stuff like that. I did see a couple ads on the bus and I got ads in my mailbox actually about EarthLink service.
No other questions for this panel, we'll call up our next three witnesses. Thank you all.
Good afternoon. 135 12/11/07 - TECHNOLOGY - RES. 070756
Hi. I'm Richard Cermele. I'm from the -- I'm part of the Advisory Committee. I also happen to work at City Hall myself.
-- as we used to call him before he got promoted about four times to Girard College?
Well, it's been my experience with the Advisory Committee that Philadelphia Wireless has been very responsive. They've listened to what I have had to say. I was concerned when I read that article too in the newspaper and I heard about it, but, you know, 136 12/11/07 - TECHNOLOGY - RES. 070756 talking with the people from Philadelphia Wireless, they've been very open and honest about what's going on, and my experience -- I have the service myself. I've had some initial problems with it, but, you know, my use of it, it's improved. Like any emerging technology, it's not going to be perfect, but I really like the idea of Philadelphia moving forward. There was a point last year where I was -- they took a picture of me in Love Park using the Internet service, you know, and like I just feel really proud to be part of that. And I remember when the Mayor made his initial announcement that Philadelphia was moving forward with this. This is a great thing, that numbers alone cannot define what's happening here and how quickly they're signing up subscribers. And that's not the mission of Philadelphia Wireless. The mission of Philadelphia Wireless is to provide this to people who would not 137 12/11/07 - TECHNOLOGY - RES. 070756 otherwise have Internet service. But just to be part of something so innovative, I'm willing to go through some growing pains, and I'm just glad to be a part of it.
Okay. Well, thank you very much. Any questions of this witness? (No response.)
Are there any other witnesses who aren't on our list that would like to testify? (No response.)
I would just like to say in closing -- and I'll ask my colleagues here for any comments they want to make -- that since we approved this as a Council and as a city, this program, a year and a half ago, it's become very clear to the corporate world that this is not a dynamic profitable area with business plans and expansion plans, and I think EarthLink just happens to be the company that had the most 138 12/11/07 - TECHNOLOGY - RES. 070756 activity out there and recognized it and said we're going to retrench. That having been said, Philadelphia's plan was not about making money for Philadelphia. It was basically about breaking even and trying to have somebody else pay for it, and if the other party made money, fine. If the other party didn't make money, that was their risk. Businesses are big people. If they lost $20 million or whatever in this or they wind up losing, I think if you look at EarthLink's balance sheets, $20 million won't be a big deal in the bigger picture of their company. But they do have a responsibility to their shareholders, and if it's not making money, it's not making money. That is something that we'll have to keep in mind. Some day it may be profitable. It's not profitable today. Other cities are just dropping it, dropping the idea, because they don't want to fund it or have their taxpayers 139 12/11/07 - TECHNOLOGY - RES. 070756 fund it. We're in the fortunate position because of our place in time with the negotiations with EarthLink that we didn't have to take that risk. So hopefully this will continue to be something that may crawl more than it walks or runs, but will serve the original purpose of this project, which was not an economic one, it was a social one, and at this point, it is still the only program of its kind in the country. While there are smaller pieces of wireless in different cities and they have hired companies to do what our home-grown Wireless Philadelphia Board and advisory councils do, we're not paying anybody to do that from Washington, DC or whatever. And they're nice people. Don't get me wrong. They testified at our last hearing. They were even consultants on this project. But we're the only city that has our own people making decisions for our own people. 140 12/11/07 - TECHNOLOGY - RES. 070756 So I'm sure if not Councilman Rizzo, myself or Councilwoman Blondell Reynolds Brown will have a resolution 5 bringing us back here within six months or so to have another afternoon like this to talk about where we are. And so we should recognize that not all is perfect, but that things could be a whole lot worse. Thank you.
You're correct. I will be reintroducing my resolution shortly after we reconvene to continue to get these updates, because I think I learned a lot today and I want to continue to learn. Like I mentioned many times, I would like to be wrong. I would like to see this project be very, very successful, because inclusion is very important to me. 141 12/11/07 - TECHNOLOGY - RES. 070756 I've been asked to, with your permission, to invite everyone here to stay for an important panel discussion in the Council Chamber that builds on this issue immediately following the hearing, hosted by the Media Mobilizing Project and the New America Foundation. So they'll be here as soon as we end this hearing.
Okay. So we probably went an hour and a half longer than their original anticipated time, but anybody that wants to stay for that doesn't have to leave the room. That's the good part. Thank you all for your attendance, and the hearing is over. (Committee on Technology and Information Services adjourned at 3:20 p.m.) - - - 142 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on December 11, 2007, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)