Philly Wi-Fi saved, free access to be offered to all

By Ed Oswald | Published June 17, 2008, 6:07 PM

In a stunning announcement, the city of Philadelphia said that it had reached a deal with a group of private investors to keep its wireless network alive and free.

Although details are still being worked out, free wireless access will be available to Philadelphians as of today. The system will be reassessed over the the next few months along with a formal roll-out later this year.

Though the investors have yet to be publicly named by the City, it is known that the investment team will be led by area businessmen Derek Pew and Mark Rupp. They're the chairman and director, respectively, of Greensburg-based Remi Communications, which describes itself as "a certificated provider of voice, data, video and application services in support of the business activities of enterprise customers."

2007 Democratic mayoral candidate Tom Knox will also join the company, according to the Philadelphia Inquirer.

Philadelphia's Wi-Fi dream started with former Mayor John Street in January 2005, when the plan to blanket the city with wireless access was first announced. EarthLink was chosen to head the network in October of that year.

Construction of the network began during the summer of 2006, and the city's downtown district became the test bed for the rest of the network in January of last year. But soon after that, the city's plans quickly went south.

EarthLink suddenly had a change of heart regarding municipal Wi-Fi, and the promise of a large subscriber base never materialized. In fact, it was said that only about 6,000 had subscribed, a stunning failure considering that toward the end of its run, the network covered about 70 percent of the city's 1.45 million residents.

With the new plan, the focus will no longer be on a paid subscriber model. In fact, Philadelphia will become the world's largest free hotspot -- with service available at no cost wherever a signal can be reached.

It is said that an ad-supported model is being considered, and the new company is hoping to lure in "institutional subscribers" -- such as business and universities -- to help foot the bill.

Whomever takes over the network will need to generate a good deal of revenue: EarthLink estimated it would cost about $180,000 to $200,000 per month to maintain it in mid-May, as it was pulling out of the deal.

These costs will likely increase, since the new company is planning to both improve the system as well as complete its rollout to the entire 135 square miles that Philadelphia covers.

"We now have the potential to reach more people with this free network then any other city in the United States of America," current Philadelphia Mayor Michael Nutter said at the press conference.

Though at least one group had been known to be working to prevent the shutoff of the network, it is uncertain what role Wireless Philadelphia, the non-profit group created by former mayor Street to oversee the city's wireless efforts, will have in the new arrangement, or whether that group played a role in making this latest deal a reality.

Comments

The dimwit ISP's want more subscribers? Then figure out how to get DSL beyond the 14K foot 'distance to your CO' limit! There are so many users desperate for broadband but still cannot get DSL or Cable service. Meanwhile these dodo's are trying to provide free wireless to people who don't want it. Great.

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I'm sure that EarthLink over-valued the worth of their maintenance or they're just really lousy at everything they do, though I suppose there are sections (Logan, etc.?) where maintenance will be higher because of dangerous conditions.

I'll be impressed if they get it to work and if it's free to use, I'll be more impressed. After all, you have to pay for the privilege to work in Philly. I'd be surprised that you don't have to pay to use the services.

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Universities as a major source of revenue?! Even as it duplicates their own network?

Where did these geniuses go to school?

Skapig is right!

Simply changing the administrators of the network doesn't reform the model! And heaven forbid, why would anyone think that a subscriber based model would work, where those who actually use the service pay!?!

But it is instructive that a Democratic mayor (J. Street) buys into the financial model. Why do I get the feeling that tax revenue will suddenly become a suggested source of funding?

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I have a feeling that they will quickly arrive at the same conclusion: the system is prohibitively expensive to maintain and there just isn't that much interest in it.

Speaking as a Philadelphian, it may be cool to have the access available. Can't say I've ever tried it, though.

Major flaws behind the business/university subscriber model:
1) Businesses tend to need connections that are far more reliable as well as more secure.
2) The Universities have their own, better wireless setups on campus. That combined with the reliability and security issues.

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