I’ve been swimming against the tide by saying that despite many concerns about municipal WiFi, mainly because the business model has yet to be truly defined, that the concept will survive and eventually thrive. Now I’m not so sure.
Chicago city officials are shelving plans to build a citywide wireless network after negotiations with EarthLink and AT&T, the two suitors for the bid, failed to materialize into a finalized contract. At the time when the city’s intentions to build a network were annnounced early last year, it looked like the Second City was going about it the right way. They issued a nearly flawless RFP document that lined out in specifics what was expected from the network, what the winning bidder would be responsible for, and what the city would do and could provide to help the process move forward. Everything looked good, and many of us who blogged about it thought this network would be the industry standard.
Cut to August 2007, and things have changed drastically. Chicago specifically pointed out to its suitors that the city would not lay out any funds to build the network, plus it would not commit to being an anchor tenant, either. As a result, the parties have backed away from the table, and a citywide wireless network is unlikely to happen anytime soon.
Plus, as the linked article suggests, the price of Internet access is coming down, especially with cable companies offering triple play packages (cable TV, phone, Internet) for less than $100 a month, and it is proving to be a winning combination in more and more households. In addition, free public WiFi access is becoming more prevalent, especially in the bigger cities, so the scramble to get into the muni WiFi game is waning, at least for the time being.
Things could certainly change, however, for Chicago and other cities big, medium, and small once somebody comes up with a business model that nearly everyone can live with. What probably needs to happen is that a meeting of some of the execs of the major muni WiFi players–EarthLink, MetroFi, ePath Communications, etc.–as well as industry gurus like Craig Settles should take place and they work to hammer out a business template that all parties can agree upon and enact.
Something like that needs to happen, or muni WiFi’s slide into oblivion will come about sooner than any of us ever expected.
[Via Chicago Tribune]