Cities struggle with wireless Internet

CITIES STRUGGLE WITH WIRELESS INTERNET
[SOURCE: Associated Press, AUTHOR: Anick Jesdanun]
Across the United States, many cities are finding their Wi-Fi projects costing more and drawing less interest than expected, leading to worries that a number will fail, resulting in millions of dollars in wasted tax dollars or grants when there had been roads to build and crime to fight. More than $230 million was spent in the United States last year, and the industry Web site MuniWireless projects $460 million will be spent in 2007. Without revenues they had counted on to offset that spending, elected officials might have to break promises or find money in already-tight budgets to subsidize the systems for the low-income families and city workers who depend on the access. Cities might end up running the systems if companies abandon networks they had built. The worries come as big cities like Philadelphia and Portland, Ore., complete pilots and expand their much-hyped networks. "They are the monorails of this decade: the wrong technology, totally overpromised and completely undelivered," said Anthony Townsend, research director at the Institute for the Future, a think tank.
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* City use seen as key to Wi-Fi projects
Utility workers armed with the latest wireless gadgets will be able to read electric meters remotely using Wi-Fi networks many cities are contemplating. Police and building inspectors can file and retrieve reports on the go. City employees carrying Wi-Fi phones can also reduce cellular phone bills. In fact, officials in St. Cloud, Fla., figured they were saving enough to pay for their network's $2.6 million construction and estimated $400,000 annual operating costs. It's how they justified giving all residents free Internet access on the system. Yet other municipal projects are counting on subscription or advertising revenues from residential usage. Some are in danger of failing if they cannot boost demand.
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