Houston WiFi: are you in?

Mr. Brightside · Aug 31, 2007

Joe Joe said:

http://www.chron.com/disp/story.mpl/front/5091264.html

EarthLink layoffs may be bump in road for Wi-Fi plan
Internet provider firing 900 workers, but its new strategy may not affect Houston's project
Click to expand...

Looks like Earthlink WIFI project in Houston is dead now.

http://news.zdnet.com/2100-1035_22-6205457.html

By Marguerite Reardon, News.com
Published on ZDNet News: Aug 31, 2007 4:00:00 AM

EarthLink's woes put free muni Wi-Fi in peril

EarthLink's scaled-back municipal Wi-Fi business has jeopardized many cities' plans to bring free or low-cost broadband to low-income residents.

A day after EarthLink announced a massive restructuring that would essentially put almost half its employees out of work, the company wriggled its way out of contracts with Houston and San Francisco to build their citywide Wi-Fi projects. For each of these cities, providing free or low cost wireless broadband was the main reason for building the networks.

Over the past few years, blanketing cities with unlicensed Wi-Fi signals has been viewed as a cheap solution to bringing affordable or even free broadband access to cities. Politicians and community leaders have rallied around the technology as an economic development tool that could help bring low-income individuals into the bustling economy of the 21st century.

But as the economic reality of building a network primarily to serve up low-cost broadband access settles in at EarthLink, the company's top brass says the strategy isn't viable. And as a leader in this industry, cities are now scrambling to find alternative ways to finance their Wi-Fi dreams.

Several cities have already reacted to EarthLink's change of heart by canceling or putting their projects on hold. Chicago, whose main objective was building a network to provide ubiquitous and affordable broadband access, said earlier this week that it has halted its plans for a citywide Wi-Fi project after it couldn't come to terms with demands made by AT&T and EarthLink, which were both bidding for the contract. And in addition to Houston and San Francisco, Alexandria and Arlington, Va., and St. Petersburg, Fla.--all EarthLink Wi-Fi cities-- have also put their projects on hold.

"It's easy to talk about digital inclusion when you're not paying the bill to build the network," said Craig Settles, an independent wireless consultant. "So I'm sure some cities that likely weren't really serious about it in the first place won't pursue it. But for cities that are serious, they'll push forward and either lay down some bucks themselves or find other alternatives for funding."

On Wednesday, EarthLink said it would pay a $5 million penalty to the city of Houston to get a nine month extension on its contract. Later that same day, EarthLink also said it was killing plans to build San Francisco's citywide network.
"EarthLink's decision to scale back its municipal Wi-Fi has put the entire muni wireless market in a state of flux."
--Richard Lewis,
Houston CIO

San Francisco's mayor, Gavin Newsom, has pledged to continue to pursue free Wi-Fi for all San Franciscans. Houston's chief information officer, Richard Lewis, also said the city is committed to building a wireless network.

"EarthLink's decision to scale back its municipal Wi-Fi has put the entire muni wireless market in a state of flux," he said. "But I believe wireless is the future. So in the grand scheme of things, this just means that our wireless infrastructure won't go in as early as we had hoped."

Philadelphia was the first city to make bridging the digital divide its primary objective for building a citywide Wi-Fi network. And EarthLink, which won the high-profile contract in 2005, quickly became the go-to company to make this promise a reality.

Soon cities all over the country jumped on the bandwagon. But it was Google's promise of delivering free Wi-Fi access through advertising that pushed expectations beyond reality, Settles said.

"Everyone wanted to be another Philadelphia," he said. "But they didn't understand the complexities of how Philadelphia structured its nonprofit organization to help defray costs. And then Google and San Francisco said they wanted to give access away for free, setting up unrealistic expectations."

By most counts, Philadelphia was extremely lucky in being the first major city to propose such a network. As a result the company negotiated an extremely good deal with EarthLink, which promised to pay $15 million to build the network and provide service. The contract, which spans 10 years, requires the city only to provide access to light poles and other structures to deploy the wireless radios. It does not require the city to spend any amount of money with EarthLink on services, although city officials say it will likely become a customer.

Unlike San Francisco's proposed plan, Philadelphia does not provide free residential Internet access, although access is free in some outdoor public areas. Instead EarthLink charges $20 a month for its residential service. A nonprofit organization called Wireless Philadelphia subsidizes the cost for low-income households through grants.

With only 50 percent of the city's network built out today, it's difficult to assess the success or social impact of the project. But Greg Goldman, CEO of Wireless Philadelphia, said the city is pleased with the early results. Even though EarthLink has said it's committed to continuing its investment in Philadelphia, Goldman concedes it's unlikely that other cities will get a deal as good as the one Philadelphia negotiated.

"I am glad that Philadelphia is in the position that it's in," he said. "But the business model our network is structured around is unlikely to be replicated in other major cities anytime soon. I guess that's what happens when you're willing to be first and take a risk."

Indeed, EarthLink and other service providers such as AT&T have changed how they approach their negotiations with cities. Now they're asking cities to become anchor tenants of the networks they build, said Hardik Bhatt, Chicago's chief information officer. The idea is that cities will commit to spending a set amount of money on wireless services to drive applications, such as reading meters, mobilizing city workers, or providing public safety.

"The muni-wireless industry has changed in the last few months," Bhatt said. "The two service providers we negotiated with started asking for anchor tenancy as a condition of building the network. But our goal all along was not to spend any taxpayer money on sharing the cost of building the network, so we decided to re-evaluate our plans to keep them in line with our objectives."

Other cities, such as Minneapolis, are building citywide Wi-Fi networks with the explicit purpose of using the network for improving public safety and using it for other city purposes. In fact, Minneapolis' network, which is only partially built, proved instrumental in helping recovery efforts after a major bridge collapse earlier this summer.

But for Chicago becoming an anchor tenant isn't feasible.

"We've had a wireless network in place since early 2004 based on cellular technology," Bhatt said. "And we use our own Wi-Fi network in other parts of the city. So we don't really need a Wi-Fi service right now."

Houston CIO Lewis said his city had committed to being an anchor tenant on EarthLink's network. But the city, which spans some 640 square miles, was promising to commit only $500,000 a year for the first five years of the contract. The network was projected to cost EarthLink between $40 million and $50 million to build.

EarthLink declined to comment on its negotiations with Houston.

While there is little question that EarthLink's financial woes have slowed the market and may have even dampened enthusiasm in the private sector for addressing the digital divide, Goldman of Wireless Philadelphia believes the shift is only temporary. He said cities lined up too quickly to try to get the same deal Philadelphia got without waiting to see if the model proved itself.

"In some ways the industry went too fast in following Philadelphia's lead," he said. "But now, I think the industry is just taking a breather. The public/private partnership presents a great opportunity to address digital inclusion. The movement will march forward. It has to, because the issue isn't going away."
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tulexan · Aug 31, 2007

New Orleans has free WiFi

Lil Pun · Aug 31, 2007

No, I live in Arkansas.

Mr. Brightside · Aug 31, 2007

Lil Pun said:

No, I live in Arkansas.
Click to expand...

huh, what?

LegendZ3 · Mar 25, 2008

http://www.chron.com/disp/story.mpl/front/5645574.html

Houston mayor plans 10 'bubbles' of free WiFi
Mayor targets low-income areas and eyes citywide coverage in future

By BRAD HEM
Copyright 2008 Houston Chronicle

Houston is aiming to turn EarthLink's lemons into the city's lemonade.

The company had to pay the city $5 million after defaulting on a contract to build a citywide wireless Internet network last year. On Monday, Mayor Bill White announced the city will use about $3.5 million of that money to build 10 free wireless network "bubbles" in low-income parts of Houston to give residents access they otherwise might do without.

The long-term possibility, White said, is that the bubbles could be connected and the areas between them added to the network, providing WiFi access across the city.

"It's a matter of connecting those bubbles," White said.

Monday's announcement launched the first bubble in the densely populated Gulfton area of southwest Houston. The city is establishing a committee to determine where future networks will be located. Build-out is expected to happen over the next two years.

Upload and download speeds on the network are about 3 megabits per second, said Nicole Robinson, director of the city's Digital Inclusion Project. Comparable DSL service can cost $29 a month.

Several cities, including Philadelphia, San Francisco and Chicago, have struggled in the past few months to create municipal WiFi networks after EarthLink abandoned that part of its corporate strategy and paid millions in default fees, said Craig Settles, an independent municipal wireless consultant and author of two books on city WiFi.

Various financial and operational models are emerging. Settles said the new Houston model could be successful because it limits some cost by locating network transmitters on government-owned property. And by focusing on low-income areas, the plan is more politically acceptable and possibly open to future funding — either from government sources or private companies interested in boosting philanthropy, he said.

"I think where the city is going makes a lot of sense," he said.

To expand the network beyond the first 10 bubbles will require partnerships with other private businesses, said Settles. He suggested deals with area hospitals, which tend to be spread throughout the city and might have interest in establishing a network to communicate with ambulances, clinics, doctors and patients citywide.

Last week, the city finished the formal process of requesting information from potential service providers about how it might build out the network, said Richard Lewis, director of the city's information technology department. The city likely will ask for bids to build the remaining nine networks, maintain them, provide technical support for users and create a system for businesses to advertise on the network, potentially building revenue for operational costs, he said.

Hewlett-Packard, Microsoft, Verizon Wireless and Tropos Networks — which donated equipment for the Gulfton network — are pilot sponsors. HP will help develop an "affordable computer purchase plan," according to a news release.

In addition to installing Internet service, the city is working with social service groups to provide computer access and training for users. Each bubble will include about 15 public access points at schools, city facilities and community organizations within the area.

The pilot network in the Gulfton area includes access points at Family Road Literacy Center, Sylvan Rodriguez Elementary School and Burnett Bayland Community Center.

Most city libraries already provide free wireless hot spots, and the new library branch location at Discovery Green downtown will provide wireless service throughout the new park when it opens in April.

With most new jobs requiring at least a familiarity with computers, White said it is critical the city helps people learn basic computer skills.

"Allowing somebody to have access to computers and to feel confident with them ... you will open a whole horizon for that individual from which they can pull themselves up," he said.

brad.hem@chron.com

moestavern19 · Mar 25, 2008

They tried to do this back in my hometown (Lompoc, CA) back in like 2005. It was supposed to be the first completely WiFi city. After a couple million the project was pushed back like 2 years in a row and I still don't think its up and running completely. Keep in mind this is a small city with only about 45,000 people.

Miguel · Mar 25, 2008

ON THIS PERFECT DAAAAAAAAAAAAAAAAAAAY

finalsbound · Mar 25, 2008

Sweet, free wifi at y'alls apartment. Maybe time to use that money to invest in a dinner table now? ;]

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Houston WiFi: are you in?

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