Chicago pulls the plug on wireless network plans for now
Tuesday, August 28th, 2007
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.
With the recent announcement of Long Island’s Suffolk and Nassau counties awarding their muni WiFi project to
Trenton, New Jersey, the state’s capitol, is looking at possibly developing and deploying a citywide wireless network.
One of the more exciting areas that wireless technology has found increasing usage is in the hospital setting, where wireless network access, VoIP telephony, and devices and applications used to treat and care for patients.
The last few months haven’t been very good ones for the citywide wireless network sector. The problems with San Francisco’s network, as well as those reported from Milwaukee, St. Petersburg, Florida, and Yuma, Arizona, among others, have led to skepticism and second-guessing by governmental officials, technology insiders, and the general public as to whether muni WiFi is really all that it was supposed to be.
It looks like the citywide wireless network being planned for the city of Yuma, Arizona is undergoing some further delays.
A number of towns and municipalities throughout the state of Georgia are applying for grants from the Wireless Communities Georgia program in order to built wireless networks for their residents. In 2006, the state awarded $4 million in grants to six local governments, and it appears the state will equal that total, if not exceed it.
First it was San Francisco dealing with problems regarding its planned citywide wireless network. You can now add Milwaukee to the list.
I ran across this article the other day about T-Mobile’s
Salt Lake City, Utah is a burgeoning business center, and a number of locations including its libraries, public squares, and a portion of the downtown area are now hooked up with WiFi service.
Although WiMax technology has made some serious in-roads over the past few months, it still will be a while before it overtakes WiFi.
The proposed wireless network for the city of San Francisco continues to suffer from delays due to endless debate between the Board of Supervisors, EarthLink and Google, and Mayor Gavin Newsom.
American Airlines says it will launch an in-flight WiFi service within the next two years. The carrier just signed an agreement with AirCell to provide passengers with 801.11a/b/g broadband connectivity within its aircraft.