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Friday, 31 August 2007 11:16

Wireless web projects run aground in the US

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Financial worries

 

Huge civic wireless Web projects are collapsing as telephone partners worry about the finances.

According to Associated Press San Francisco and Chicago projects have unraveled while another high-profile deal in Houston is close to being killed off.

The main problem with municipal Wi-Fi projects is whether or not the networks will generate enough revenue to justify the multimillion-dollar investment.

Some cities already have agreed to help finance Wi-Fi by sharing some of the upfront costs and guaranteeing subscriptions. Minneapolis, for instance, has agreed to become the "anchor tenant" on its Wi-Fi network which will cost the city $1.25 million annually.

More here.


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