Chicago Scraps Plans for Wi-Fi Network

renovation · 08-28-2007, 08:51 PM

An ambitious plan to blanket the city with wireless broadband Internet will be shelved because it is too costly and too few residents would use it, Chicago officials said Tuesday.

"We realized - after much consideration - that we needed to reevaluate our approach to provide universal and affordable access to high speed Internet as part of the city's broader digital inclusion efforts," Chicago's chief information officer, Hardik Bhatt, said in a statement.

The plan to blanket Chicago's 228 square miles with wireless Internet access was announced early last year when Chicago leaders said they hoped to become one of the largest cities to offer all-over access to the Web.

Instead, the city said its negotiations with private-sector partners, including EarthLink Inc. (ELNK) (ELNK), have stalled because any citywide Wi-Fi would require massive public financing. The city had hoped to provide only infrastructure for the network.

Tuesday's announcement makes Chicago the latest in a string of municipalities to encounter troubles with their municipal broadband initiatives because of ballooning budgets and dwindling usage that's led to scant revenue generated by the projects. About 175 U.S. cities or regions have citywide or partial systems.

"But given the rapid pace of changing technology, in just two short years, the marketplace has altered significantly," Bhatt said.

Atlanta-based EarthLink, which had been negotiating with Chicago about the municipal network, has said it was studying the performance of its existing municipal wireless Internet networks before deciding how to move forward with similar networks elsewhere.
http://apnews.excite.com/article/200...D8RA8QT00.html
i think other citys and areas will follow suit do to costs

Maarchk · 08-29-2007, 10:50 AM

It seems cool, but i think its just not a worth while venture. Everyone can have wireless. Ok cool, but not everyone uses it, it goes too slow to enjoy youtube and other high bandwidth sites and applications, and wouldn't it be dangerous to be in the park with your lap top?
I would much rather the country get its act together and get fiberoptics and other high speed connectivity into the wired connections. We severely lag behind many countries in people's ability to get high speed internet, and truly advanced countries have super high speed internet. I want my 1 Gig connection already!!!

Napoleon54 · 08-29-2007, 11:01 AM

Why should wifi be a government service to begin with?

johnnymk · 09-04-2007, 10:36 AM

http://vonmag.com/editorial/web-excl...i-fi-maxed-out

By Doug Mohney

EarthLink is shedding its big plans for building and operating municipal Wi-Fi networks as part of company-wide cost-cutting measures after four quarters of losses. Chicago has turned its back on AT&T and EarthLink proposals to build a city-wide Wi-Fi network. Is large scale “free” Wi-Fi on the way out?

As a part of cost-cutting measures to include the loss of 900 employees, Earthlink will lose its head of municipal Wi-Fi efforts and is reportedly backing out of contracts to build out Wi-Fi networks in Houston and San Francisco, as well as putting projects in Alexandria and Arlington, VA, and St. Petersburg, FL. on hold.

EarthLink will pay $5 million in penalties to the city of Houston for a nine month extension on the contact, but the company is not expected to move forward with the 640 square mile project. Trying to work out an agreement for a Wi-Fi network in San Francisco first became mired in politics, followed by EarthLink’s announced withdrawal out of its proposed plan to foot all of the bills for the building and operation of the network. If the contract had been approved, EarthLink would have paid the city $2 million for the right to build, install, and operate a free Wi-Fi network across the area, with the ability to offer faster service to users for $20 a month.

Meanwhile, the city of Chicago failed to reach a Wi-Fi build out agreement with either AT&T or EarthLink, City officials were offering infrastructure, but no cash, to a carry that would foot the bill for a network build. Both AT&T and EarthLink wanted Chicago to be an anchor tenant and agree to pay for use of the network to support city services, but the city declined. Estimated costs to install the infrastructure ranged up to $50 million to cover 220 square miles of territory and as much as $150 million to operate the network for six years.

Cheaper and more flexible broadband options have slowed down the rush to build “free” Wi-Fi networks. AT&T charges as little as $20 a month for 1.5 Mbps DSL, according to the Chicago Tribune, providing many people affordable Internet access. Sprint’s WiMAX service is expected to provide higher-speed wireless broadband coverage with higher quality of service and security than Wi-Fi at lower price points than 3G cellular service, offering municipalities and ordinary consumers another affordable option as its network come on line in 2008.

Markel · 09-04-2007, 10:50 AM

Quote:

Originally Posted by johnnymk

Meanwhile, the city of Chicago failed to reach a Wi-Fi build out agreement with either AT&T or EarthLink, City officials were offering infrastructure, but no cash, to a carry that would foot the bill for a network build. Both AT&T and EarthLink wanted Chicago to be an anchor tenant and agree to pay for use of the network to support city services, but the city declined. Estimated costs to install the infrastructure ranged up to $50 million to cover 220 square miles of territory and as much as $150 million to operate the network for six years.

Translation:

Quote:

Meanwhile, the city of Chicago failed to reach a Wi-Fi build out agreement with either AT&T or EarthLink, vendor officials were offering insufficient cash under the table to convince enough city politicians to move ahead with the project.

johnnymk · 09-04-2007, 11:54 AM

Quote:

Originally Posted by Markel

Translation:

Jeffbx · 09-05-2007, 06:12 AM

Free wide-scale wifi is a stupid idea. They're doing the same thing in my county, and I just don't see who will use it.

The free service is 128kbps, which is not that great. You can upgrade to a usable speed for $27/mo for 1.5 down, 768k up; but that's a little more expensive than DSL locally, which runs as the same speed.

Plus, people who need internet access are already subscribing to a service, and people who can't afford wireless (and I'm going out on a limb here) probably can't afford a wireless-enabled laptop, either.

From what I've heard the project is struggling already, and they're only in the pilot phase.

ShawnLee · 09-05-2007, 09:31 AM

Quote:

Originally Posted by Markel

Translation:Meanwhile, the city of Chicago failed to reach a Wi-Fi build out agreement with either AT&T or EarthLink, vendor officials were offering insufficient cash under the table to convince enough city politicians to move ahead with the project.

Probably true, knowing Chicago...

08-28-2007, 08:51 PM	#1
renovation Admiral Join Date: Jan 2003 Location: You could pick up Lindsay Lohan for less than a intel 990x, and still have money left over to bail her outta jail Posts: 5,029	Chicago Scraps Plans for Wi-Fi Network An ambitious plan to blanket the city with wireless broadband Internet will be shelved because it is too costly and too few residents would use it, Chicago officials said Tuesday. "We realized - after much consideration - that we needed to reevaluate our approach to provide universal and affordable access to high speed Internet as part of the city's broader digital inclusion efforts," Chicago's chief information officer, Hardik Bhatt, said in a statement. The plan to blanket Chicago's 228 square miles with wireless Internet access was announced early last year when Chicago leaders said they hoped to become one of the largest cities to offer all-over access to the Web. Instead, the city said its negotiations with private-sector partners, including EarthLink Inc. (ELNK) (ELNK), have stalled because any citywide Wi-Fi would require massive public financing. The city had hoped to provide only infrastructure for the network. Tuesday's announcement makes Chicago the latest in a string of municipalities to encounter troubles with their municipal broadband initiatives because of ballooning budgets and dwindling usage that's led to scant revenue generated by the projects. About 175 U.S. cities or regions have citywide or partial systems. "But given the rapid pace of changing technology, in just two short years, the marketplace has altered significantly," Bhatt said. Atlanta-based EarthLink, which had been negotiating with Chicago about the municipal network, has said it was studying the performance of its existing municipal wireless Internet networks before deciding how to move forward with similar networks elsewhere. http://apnews.excite.com/article/200...D8RA8QT00.html i think other citys and areas will follow suit do to costs __________________ You could pick up Lindsay Lohan for less than a intel 990x, and still have money left over to bail her outta jail

08-29-2007, 10:50 AM	#2
Maarchk Rear Admiral Upper Half Join Date: Jul 2000 Location: Where the east meets the west. Posts: 3,066	It seems cool, but i think its just not a worth while venture. Everyone can have wireless. Ok cool, but not everyone uses it, it goes too slow to enjoy youtube and other high bandwidth sites and applications, and wouldn't it be dangerous to be in the park with your lap top? I would much rather the country get its act together and get fiberoptics and other high speed connectivity into the wired connections. We severely lag behind many countries in people's ability to get high speed internet, and truly advanced countries have super high speed internet. I want my 1 Gig connection already!!! __________________ "The girl is crafty like ice is cold." "I left my heart in san francisco... And my liver at Moe's Tavern." A real friend is one who listens to you as much as they talk to you.

08-29-2007, 11:01 AM	#3
Napoleon54 Vice Admiral Join Date: Aug 2001 Location: floating inside of a giant egg made of stars Posts: 4,861	Why should wifi be a government service to begin with? __________________ There is all the difference in the world between treating people equally and attempting to make them equal. - Friedrich Hayek

09-04-2007, 10:36 AM	#4
johnnymk Chief of Naval Operations Join Date: May 2000 Location: LEVITTOWN< PA> USA Posts: 13,621	Wi-Fi Maxed Out? http://vonmag.com/editorial/web-excl...i-fi-maxed-out By Doug Mohney EarthLink is shedding its big plans for building and operating municipal Wi-Fi networks as part of company-wide cost-cutting measures after four quarters of losses. Chicago has turned its back on AT&T and EarthLink proposals to build a city-wide Wi-Fi network. Is large scale “free” Wi-Fi on the way out? As a part of cost-cutting measures to include the loss of 900 employees, Earthlink will lose its head of municipal Wi-Fi efforts and is reportedly backing out of contracts to build out Wi-Fi networks in Houston and San Francisco, as well as putting projects in Alexandria and Arlington, VA, and St. Petersburg, FL. on hold. EarthLink will pay $5 million in penalties to the city of Houston for a nine month extension on the contact, but the company is not expected to move forward with the 640 square mile project. Trying to work out an agreement for a Wi-Fi network in San Francisco first became mired in politics, followed by EarthLink’s announced withdrawal out of its proposed plan to foot all of the bills for the building and operation of the network. If the contract had been approved, EarthLink would have paid the city $2 million for the right to build, install, and operate a free Wi-Fi network across the area, with the ability to offer faster service to users for $20 a month. Meanwhile, the city of Chicago failed to reach a Wi-Fi build out agreement with either AT&T or EarthLink, City officials were offering infrastructure, but no cash, to a carry that would foot the bill for a network build. Both AT&T and EarthLink wanted Chicago to be an anchor tenant and agree to pay for use of the network to support city services, but the city declined. Estimated costs to install the infrastructure ranged up to $50 million to cover 220 square miles of territory and as much as $150 million to operate the network for six years. Cheaper and more flexible broadband options have slowed down the rush to build “free” Wi-Fi networks. AT&T charges as little as $20 a month for 1.5 Mbps DSL, according to the Chicago Tribune, providing many people affordable Internet access. Sprint’s WiMAX service is expected to provide higher-speed wireless broadband coverage with higher quality of service and security than Wi-Fi at lower price points than 3G cellular service, offering municipalities and ordinary consumers another affordable option as its network come on line in 2008.

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09-05-2007, 06:12 AM	#7
Jeffbx Fleet Admiral Join Date: Mar 2000 Location: Michigan Posts: 9,390	Free wide-scale wifi is a stupid idea. They're doing the same thing in my county, and I just don't see who will use it. The free service is 128kbps, which is not that great. You can upgrade to a usable speed for $27/mo for 1.5 down, 768k up; but that's a little more expensive than DSL locally, which runs as the same speed. Plus, people who need internet access are already subscribing to a service, and people who can't afford wireless (and I'm going out on a limb here) probably can't afford a wireless-enabled laptop, either. From what I've heard the project is struggling already, and they're only in the pilot phase.

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