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<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>