I think the challenge for cities that already exist and haven't built those networks is that there is a barrier to entry in terms of cost. But the benefits are significant, as you mentioned, particularly when a municipality actually adopts the ICT necessary to change its processes. It builds efficiency. Having everything done online improves efficiency for everything and reduces costs—for instance, transportation infrastructure, how you pay your taxes, etc.
On March 7th, 2013. See this statement in context.