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...cost or no-cost wi-fi is a potent competitive threat to cable companies and telcos, which spent billions building out systems. That's why these industries mounted a furious lobbying attack, pushing through restrictive legislation in 14 states, including Pennsylvania and Louisiana, to stop towns from constructing their own networks and charging...

Author: /time Magazine | Title: Welcome to Wi-Fi-Ville | 1/5/2007 | See Source »

...telcos, including Verizon in New York, argue that city-owned systems have an unfair advantage over privately run ones--which could stifle competition. "Wi-fi as a public service has serious issues like network congestion and security," says Eric Rabe, Verizon's senior vice president for media relations. "Do you really want your government handling your e-mail?" Public outrage caused the telco fight to fizzle, with many bills getting killed or modified. City wireless is set to become a $1.2 billion market by 2010, according to analyst firm ABI Research; AT&T, Verizon and Sprint Nextel spin-off Embarq...

Author: /time Magazine | Title: Welcome to Wi-Fi-Ville | 1/5/2007 | See Source »

Going head to head with the telcos is EarthLink, a big player in dial-up but a company that was falling behind in broadband because of the high prices cable companies charged for access to the network. EarthLink (projected 2006 revenues: $1.3 billion) is banking on muni wi-fi to grow sales, closing deals with seven cities in public-private partnerships. EarthLink owns and operates the network while the city contributes money or light poles to nest radios for connectivity. The company will cut costs by selling access to wholesale providers like DirecTV. Philadelphia created a government-supported nonprofit...

Author: /time Magazine | Title: Welcome to Wi-Fi-Ville | 1/5/2007 | See Source »

...cheap wi-fi a bargain? It depends on your needs. Wi-fi networks are on unlicensed spectrums, and towns like St. Cloud, Fla., initially suffered from spotty performance. "I don't think many broadband users will switch to muni networks unless they're less expensive and sure to work," says Ina Sebastian, an analyst at Jupiter Research, whose survey of online consumers found that only 12% would pay for a citywide service. Some places are waiting for WiMAX, a technology similar to wi-fi but faster and longer range, with fewer interference issues, but it's not yet certified...

Author: /time Magazine | Title: Welcome to Wi-Fi-Ville | 1/5/2007 | See Source »

Even free municipal wi-fi has one price that some find too steep: loss of privacy. Users aren't always comfortable knowing a government-run operation can track their searches for advertising or limit their access to websites. Culver City, Calif., and Adel, Ga., use software to prevent people from surfing porn and downloading copyrighted material. "I made a decision we shouldn't be spending taxpayer dollars on this," says John Richo, Culver City's information-technology director. Users must agree to "limited" Internet access and waive First Amendment claims arising from the city's decision to block sites. Civil...

Author: /time Magazine | Title: Welcome to Wi-Fi-Ville | 1/5/2007 | See Source »

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