High Costs Unravel Citywide Wi-Fi Plans

Cities reconsider the economics behind free citywide Wi-Fi networks. Plans have already fallen through in Chicago and San Francisco, and more are expected to follow.

1 minute read

September 2, 2007, 9:00 AM PDT

By Nate Berg

"A year ago, it seemed like just about every major U.S. city was drawing up ambitious plans to build wireless Internet networks so more people, both rich and poor, could have online access wherever they wanted."

"Now, economics is blurring the Utopian vision as city leaders and the companies proposing to build the Wi-Fi networks haggle over whether the projects make financial sense."

"The problem came into sharper focus this week as once-ballyhooed projects in San Francisco and Chicago unraveled while another high-profile deal in Houston neared a breaking point."

"MuniWireless estimates Wi-Fi networks have either already been built or are under consideration in 455 cities and counties across the United States, up from 122 two years ago."

"The second thoughts about municipal Wi-Fi revolve around questions about whether the networks will generate enough revenue to justify the multimillion-dollar investments to build and maintain them."

FULL STORY: Money woes dim hopes for wireless Web access in big cities

Friday, August 31, 2007 in The Detroit Free Press

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