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US pushes ahead with citywide Wi-Fi

Marguerite Reardon CNET News

Published: 26 Sep 2007 17:59 BST

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Despite the recent onslaught of bad press, citywide and regional Wi-Fi networks are not dead.

In fact, US cities such as Corpus Christi in Texas, Minneapolis and Philadelphia are seeing early signs of success. And lessons learned from these deployments, if applied properly, could help save bigger and more ambitious projects, such as Silicon Valley's regional wireless network.

There are two important lessons other cities can learn from these projects in progress. The first is having a clear mission and use case for building these networks, and the second is defining a business model for building and sustaining the network.

"Cities that have seen early success have been able to articulate very clearly to politicians and citizens how the network will be used and how it will benefit people," said Craig Settles, an independent wireless consultant. "And they've also had clear business plans for paying for the networks."

In the very earliest days of citywide Wi-Fi, this appeared to be the case. Cities such as Corpus Christi looked into Wi-Fi to solve a particular problem. The city wanted to allow its utility workers to read water and gas meters remotely. Wi-Fi seemed like a perfect solution.

Corpus Christi soon expanded the scope of its network to enable building inspectors, code enforcers, police, firefighters and emergency medical technicians to communicate wirelessly with each other. Now Wi-Fi is also used to keep tabs on city property such as vehicles and provide remote surveillance in certain parts of the city. Earlier this year, Corpus Christi sold its network to EarthLink, which will not only provide the wireless service to several city agencies, but will also sell consumer broadband services to residents for $20 (£19) a month.

Minneapolis also built its citywide network with the express intent of using it for public safety and to connect city agencies. USI Wireless, which is deploying the Wi-Fi gear and providing the service, had only a small portion of the network built in early August when a major bridge collapse put the emergency Wi-Fi network to the test.

Within hours, the network was opened up to all users, allowing people with dual-mode Wi-Fi phones to communicate without clogging the cellular network. In the days and weeks that followed, the Wi-Fi network was instrumental in rescue and recovery efforts around the disaster site.

Philadelphia, which started building its network more than a year ago, took a different tack. The city saw Wi-Fi as a way to bridge the gap between rich and poor by providing a low-cost broadband service to disadvantaged citizens.

Philadelphia saw Wi-Fi as a way to bridge the gap between rich and poor

EarthLink, which saw citywide Wi-Fi as an opportunity to own its own network infrastructure, won the contract to build and run the network. In addition to paying for the network, EarthLink also committed to providing some funding for the city's not-for-profit group Wireless Philadelphia, which subsidises internet service for Philadelphia's low-income households and helps provide training and equipment.

Subscriber numbers in Philadelphia have not been released, but Greg Goldman, chief executive of Wireless Philadelphia, said that thousands of retail customers and dozens of not-for-profit groups have already begun using the network, which is still not fully deployed. One of the biggest boosts in usage came when Drexel University, which owns and operates one of the largest wireless networks in the country, added the Wireless Philadelphia service to the array of services it offers to students and faculty.

"There's no question the ground is shifting," Goldman said. "But wireless technology isn't going away. And it provides a much-needed service for low-income people. We've been very clear from the beginning of that focus. And we believe it creates an enormous market for broadband."

After Philadelphia came on the scene, expectations of citywide Wi-Fi exploded. Soon US cities such as San Francisco were promising free wireless broadband access for all citizens funded through advertising.

Other cities quickly jumped on the bandwagon, and "free Wi-Fi for all" soon became a rallying cry for many Wi-Fi deployments.

EarthLink's management soon realised that the current business model would not suffice. This summer, the company said it would not bid on any new city contracts. Then EarthLink started pulling out of some contracts in cities where construction had not yet started, including networks in San Francisco and Houston.

The problem EarthLink faces is simple. The company, which has mostly focused on providing an alternative broadband service to consumers, has not found a sustainable business model. And in many of the cities…

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