Published in News

Wireless web projects run aground in the US

by on31 August 2007


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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