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Report Questions Benefits of Municipal Wireless Broadband Networks

By ALM Staff | Law Journal Newsletters |
February 24, 2005

Chicago, Las Vegas, New York, Philadelphia, and San Francisco are among the major municipalities that are presently considering the establishment of city-run wireless broadband networks (Wi-Fi). They claim that by creating a public network, both the municipality and the residents would benefit. As John Street, Mayor of Philadelphia, stated in a recent speech before the United States Conference of Mayors: “Just as highways were a critical infrastructure component of the last century, wireless Internet access must be a part of our infrastructure for the 21st century.” Sounds reasonable at first blush, but strong and obvious opposition from service providers such as Comcast Corporation and Verizon Communications will prove to be a major obstacle. In addition, feasibility studies are now beginning to emerge that throw more cold water on the idea of a municipal Wi-Fi utopia.

According to a report by the New Millennium Research Council (NMRC), compiled by six scholars and telecommunications policy experts, “beneath the positive media coverage and glowing press pronouncements are troubling signs that these publicly held networks can result in less than anticipated outcomes,” leaving taxpayers to fund outdated technology from already strained city budgets (www.newmillenniumresearch.org/archive/wifireport2305.pdf).

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