Municipal wi-fi networks seen as failures, in many cities
Surprising no one but its supporters, cities across the United States are finding that bringing free- or low-cost wi-fi networks to its residents is either cost-prohibitive or too complex a process, and are scaling back or canceling plans.
According to the Associated Press:
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.
EarthLink Inc., an Internet service provider that had been one of the chief evangelists in the crusade to blanket cities with Wi-Fi, has decided it can no longer afford to foot the bill by itself as the Atlanta-based company tries to bounce back from $46 million in losses during the first half of this year.
“We will not devote any new capital to the old municipal Wi-Fi model that has us taking all the risks,” Rolla Huff, EarthLink’s chief executive, told analysts during a Wednesday conference call. “In my judgment, that model is simply unworkable.”
Mayor Thomas Menino and City Councilor John Tobin have spent countless hours of time on their efforts to bring citywide wi-fi to Boston. Plans are still underway, I believe. (Boston’s proposal counts on little or no direct investment by the city, fyi.)
But, the experiences in other cities should give them pause for reflection and re-evaluation. In my opinion, there is absolutely no reason for a city to provide what a private company can do, often cheaper and faster. Plus, technology is moving so quickly, who is to say whether or not wi-fi networks should be built in this manner, at all.
More: Municipal Wi-Fi faces financial hurdles - By Michael Liedtke, The Associated Press
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