<http://sfgate.com/cgi-bin/article.cgi?file=/c/a/2007/08/30/MNEJRRO70.DTL>
S.F. citywide Wi-Fi plan fizzles as provider backs off
Mayor Gavin Newsom's high-profile effort to blanket San Francisco
with a free wireless Internet network died Wednesday when provider
EarthLink backed out of a proposed contract with the city.
The contract, which was three years in the making, had run into snags
with the Board of Supervisors, but ultimately it was undone when
Atlanta-based EarthLink announced Tuesday that it no longer believed
providing citywide Wi-Fi was economically viable for the company.
Newsom blamed the Board of Supervisors for not acting quickly enough
to approve the contract that he said was the best deal any big city
had negotiated.
"I'm disappointed because we had a chance to get it done, and it
didn't happen," Newsom said. "The board delayed it, and now EarthLink
could not be more pleased."
Newsom said he did not see any benefit in the deal collapsing even
though EarthLink appears to be in financial straits and has an
uncertain future.
The company announced Tuesday that it will slash 900 jobs - about
half its workforce - and close offices in San Francisco and several
other cities as a result of stiff competition from other Internet
service providers.
"EarthLink would have been legally obligated to fulfill its promises
to San Francisco, and we would have had a functioning Wi-Fi system by
now," Newsom said.
EarthLink spokesman Jerry Grasso said that EarthLink was willing to
work with San Francisco but had decided that it "was not willing to
work in the business model where EarthLink fronts all the money to
build, own and operate the network."
Supervisor Ross Mirkarimi said that Newsom should be "relieved" that
the contract was not finalized and defended the board, saying that it
had saved the city from being stuck with a questionable network and
company.
"The mayor should be extremely thankful that the board was so
investigative and thorough in its review," Mirkarimi said.
"EarthLink's meltdown confirms our concerns that the risks outweighed
the benefits."
[MORE]
<http://www.chron.com/disp/story.mpl/metropolitan/5092403.html>
EarthLink to pay city $5M for missed deadline
EarthLink will pay Houston a $5 million penalty, an acknowledgment
that the Internet service provider will not meet its first deadline
for building a wireless network throughout the city, Mayor Bill White
announced this morning.
...
EarthLink now has a nine-month window to start building the network
in Houston, White said.
The company failed to meet its first deadline by not signing an
agreement with CenterPoint Energy to lease its utility poles for the
Wi-Fi project.
"They would like to get other sources of project financing, and they
can't do it before the deadline," White said.
In the meantime, Houston can consider offers from other vendors to
build wireless for the 640-square-mile city, White said. Whatever
happens, the city will keep the $5 million, and the city should use
it to bridge the digital divide, perhaps by building smaller "Wi-Fi
bubbles" over public spaces, the mayor said.
If built, the municipal Wi-FI project here would be the largest in
North America and require a $50 million investment.
EarthLink has said it will scale back or change its business model
for municipal wireless initiatives. Donald Berryman, president of
EarthLink Municipal Networks, is among those leaving the company, a
spokesperson confirmed Tuesday.
The wireless model EarthLink wants to develop with other cities
involves the local government being the primary customer. That
provision already is part of the contract here. Houston agreed to pay
$2.5 million over five years to use the network.
[MORE]
COMMENT:
The chickens have finally come home to roost --
"free" muni Wi-Fi just doesn't compute.
--
Best regards, FAQ for Wireless Internet: <http://Wireless.wikia.com>
John Navas FAQ for Wi-Fi: <http://wireless.wikia.com/wiki/Wi-Fi>
Wi-Fi How To: <http://wireless.wikia.com/wiki/Wi-Fi_HowTo>
Fixes to Wi-Fi Problems: <http://wireless.wikia.com/wiki/Wi-Fi_Fixes>
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