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The purpose of this paper is evaluate the public value of municipal Wi-Fi networks by examining their costs and benefits. Increasing attention has been focused on the digital divide, i.e. inequalities in digital access, use and benefits, to a lesser extent on technologies providing opportunities to overcome these inequalities. Different theoretical traditions have approached the problem of the digital divide, this research represents a synthesis by combining a bottom-up approach to calculating the benefits of municipal Wi-Fi networks with an in-depth analysis of the digital divide in Europe.

After a systematic literature review, the paper uses a bottom-up methodology to evaluate the public value of a municipal Wi-Fi network by quantifying its potential benefits and costs. In addition, it includes different types of users based on the access opportunities available to them. It develops different scenarios for these users depending on the connection alternatives and the digital skills available across European countries.

By using data from the euro-28, the paper shows that, in general, the private value of a municipal Wi-Fi network is negative, the public value is positive. However, a greater public value is depending on the extent to which the benefits can be attributed to expectations about the arrival and usage of e-government services.

Based on the quantitative analysis, the authors suggest that municipal Wi-Fi networks can provide the potential to bridge the digital divide. To generate public value, these networks have to be driven by a strong need for e-government services.

However, important factors in the adoption of these services are related to digital skills available in the particular region.

In addition, public investment is required to stimulate the growth of broadband infrastructure in a complementary manner to enable public wireless networks.

The paper combines new insights into the cost calculations of municipal Wi-Fi networks with socioeconomic data on digital skills to examine different types of users.