Back in December 2005, San Francisco’s city government had issued an RFP (request for proposals) to build a Wi-Fi network that would provide free wireless Internet access to the town’s citizens.
Companies were requested to provide free, high-speed Internet service to users- whether at home, at work or in the park- at no cost to the city. The companies were also asked to provide a premium level of paid service with 1 megabit-per-second download speeds at prices that are less than commercial rates.
In February 2006, Internet search giant Google and EarthLink have entered in a partnership to bid for building SF’s wireless network, competing with names like MetroFi, Communication Bridge Global, NextWLAN, Razortooth Communications and SF Metro Connect.
EarthLink would have paid for most of the projected $15 million cost to build and maintain the network over 16 years, with Don Berryman, EarthLink's president of municipal networks, saying that the company would recover some of its expenses by charging about $20 per month for premium Internet access (about 20 times faster than dial-up service).
However, political disputes over the length of the contract (some have suggested reducing it to only 8 years) and the speed provided to users (other have suggested free access through the city’s optical fiber cables) have deterred the construction of the Wi-Fi infrastructure until now, and, according to EarthLink’s recent estimates, San Francisco will not have a functional city-wide network anytime soon.
San Francisco Mayor Gavin Newsom is now forced to roll back to its initiative from almost two years ago, asking citizens for their support to….build the network. In November this year, San Francisco residents will be invited to express (apparently for the last time) their support for the mayor’s free Internet plans.
However, despite the potential support mayor Newsom might get from his voters, the construction faces serious set backs as EarthLink (which has also won similar bids for networks in Philadelphia and New Orleans) is thinking to freeze any new municipal projects, due to losses registered in the second quarter.
CEO Rolla Huff told investors on a conference call that the company is reviewing the long-term profit potential of its municipal Wi-Fi push. Following the EarthLink deal, San Francisco would have become the largest U.S. city yet to offer a free Internet service.
As of 1 August 2007, there were 415 cities and counties in the US in the deployment / planning phase and with networks up and running, according to research company MuniWireless. If you add the number of cities and counties that are seriously considering municipal Wi-Fi, that number rises to 455.
U.S. cities spent some $76.5 million on wireless networks in 2005, according to the aforementioned source. That number is expected to soar 430 percent to $405.6 million in 2007.
