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.