Taipei:
Creating the Digital City
Chou, Yuntsai
Chairperson
The Research, Development & Evaluation Commission
Taipei City Government
& Associate Professor of Social Informatics
Yuan Ze University
September 28, 2005
Taipei City Mayor:
Dr. Ying-jeou Ma
Preface
wireless broadband phenomenon around
the world (London, San Francisco,
Philadelphia) & 30 million users around
the world in 2004.
Taipei aiming to build the ever largest
WiFi + WiMax zone (roughly 113 square
kilometer) by 2006.
This paper explores the M-Taipei Initiative,
hoping to share the preliminary developing
experience with others.
Some Facts of Taipei
86.2% households have at least one
personal computers.
69% households use broadband to access
to the Internet.
18.9% citizens ever using wireless Internet
(31.4% in August, 2005)
 average 9,559 persons per square
kilometer (a total of 2.6 million in 272 km²)
 high population density
Short History of the M-Taipei’s
Initiative
 TCG announced its WiFi plan in early 2004.
 TCG designed the “build & operate (BO)” tender
and signed a contract with Q-ware Co. as its
private partner in Sep. 2004.
 Q-ware created a brand named WiFly.
 As of Aug 2005, about 2,300 access points (APs)
have been installed in the downtown area and
all 63 subway stations.
 37,800 people have registered as the WiFly
members, and more than 450 people log to the
network per day.
Highlights of the “M-Taipei Initiative”
1. The Build & Operate Approach
 A nine-year franchise of construction and
operation;
 Unlike other municipal projects (contractingout),it’s a unique private-public partnership in the
world;
 TCG granting Q-ware the nearly exclusive right
to install APs on all the city-owned public
facilities, including bridges, underground
tunnels, street lamps, traffic lights, school
buildings and so on.
 Public assets evaluated US$35 million, and Qware investing US$ 1 billion.
Highlights of the “M-Taipei Initiative”
2. Coverage(1)
 The Phase I
(a) 2004/9/7 – 2005/1/5 (120
calendar days)
(b) Coverage:
30 subway stations;
5 subway shopping streets;
the Beitou Machinery Workshop;
150 km outside the subway
stations;
(c) Equally 20% of the city
population accessible to the
WiFly.
(d) 523 access points are installed
Highlights of the “M-Taipei Initiative”
2. Coverage(2)
 The Phase II
(a) 2005/2/1— 2005/10
(b) Coverage:
the remaining subway stations;
the downtown area (about 28.2
km²);
(c) Equally 50% of the city
population accessible to the
WiFly
(d) A total of 2,300 APs installed.
Highlights of the “M-Taipei Initiative”
2. Coverage(3)
The Phase III
(a) time: by mid-2006.
(b) Coverage: the enlarged
downtown area (134 km²);
(c) Equally 90% of the city
population accessible to
the WiFly
(d) Estimated total 8,000 APs
installed
Highlights of the “M-Taipei Initiative”
3. Technological Renovation
The Ministry of Economic Affairs picking
WiMax as the next-generation IT
technology in next three years.
TCG announced another WiMax BO in this
Sep on the conditions of interoperatiblity
and interconnection.
TCG integrating WiMax into the current
WiFi built-up (as the backhaul
transmission supplement).
Public-Private Partnership
 market hazards: vast uncertainty concerned with
the stranded technology and market scope.
 TCG acts to provide policy insurance to increase
businesses’ incentive of investment.
 (1) a nine-year exclusive franchise to pool
market risks for Q-ware;
 (2) administrative mandate to reduce Q-ware’s
ex ante negotiation costs and ex post
coordinative efforts.
Incentive Schemes
 Why did Taipei choose the BO approach?
 (1) Market is the most viable mechanism of developing
WLAN due to its high-powered incentives.
 (2) M-Taipei strives to preserve the market force by serving
both general consumers and government.
The Business Model: Network Effects
A network is established when it reaches
an installed base.
WiFi is comparatively a much smaller
network than 2G/3G;
The incompatible technology causes high
switching costs for consumers;
  sharing the network effects from
others is the strategy.
The Eco-system of WiFi
 WiFly must ally (interconnect) with other
networked services to share network effects.
 Downstream market: handheld devices and
content applications;
 Heterogeneous market: fixed-line, transportation,
the convenient store.
1. Infrastructure
roaming with other private WLAN
providers and fixed-line communications;
Connected to the customers’ banking
accounts and credit cards;
sided with 577 7-11 convenience stores
and 46 Starbucks in Taipei (brick-&mortal channel);
2. Handheld Devices
most commonly used and standardized
WiFi devices: notebooks and PDAs.
the WiFi phone (including “dual mode”)
expected available in the mass market
soon;
Allowing PDAs or WiFi phones embedded
with extra functions such as public
transportation and micropayment (Easy
Card chips);
3. Content
VoIP is assuredly the killer application;
three likely profitable services: game, girl
(pornography), and gambling;
Streaming video, ring-bell downloads,
messaging & etc;
Offering the exclusive public services
over the net.
the Application Services Come into Presence!
 Distance Medical Treatment and Nursing (M-medicine)
the Application Services Come into Presence!
Wireless Campus;
the Application Services Come into Presence!
 Integration of Easy-Card with multiple uses (campus
identification, library check-out, micropayment)
the Application Services Come into Presence!
electronic parking meters over the WLAN
network;
the Application Services Come into Presence!
E-Application of public service by MSN via
WLAN
the Application Services Come into Presence!
VOIP、VOWLAN、wireless Skype
Mayor Ma talked to Mr. Niklas Zennstrom
Mayor Ma met Mr. Niklas Zennstrom
at Taipei City Hall in May 2005.
by skype via WIFLY in Taipei MRT
station in February 2005.
Thanks
Q & A session