''Wireless Philadelphia'' May Become a Free, Ad-Supported Service

by KYW's Mike Dunn

KYW Newsradio has learned that local investors who are considering taking over the collapsing "Wireless Philadelphia" effort want to offer the wireless Internet access free to all.

Sources say the Nutter administration's discussions to save Wireless Philadelphia involve a group of investors, primarily local, and that those investors intend to offer the WiFi signal free for everyone.  The sources indicate that the investors would generate revenue to support the operation from advertising.

The sources won't divulge the names of the local investors.  They say the negotiations between the mayor and the investors are nearing completion, and they put the chances of a deal getting done at 50-50.

The sources also say the name "Wireless Philadelphia" would be dropped, to distance the operation from its troubled origins.

Earthlink, which is bailing out on the project, has been charging about $20 a month for the wireless Internet service, and half that for low-income residents.  The firm struggled to get subscribers, signing up only about 6,000 Philadelphians at most. 
  
And now, with Earthlink planning to shut down the service, most of them have likely found other Internet providers or switched to Earthlink DSL.

Earthlink announced last month that it is dropping out of Wireless Philadelphia, and threatened at that time to shut off service on June 12th (see previous story).  The firm asked a federal judge for permission to remove the WiFi transmitters (right) from city light poles. 

Our sources indicate that any deal would be contingent on use of the Earthlink equipment.

The company had completed about three-quarters of construction before putting the brakes on the project, though large sections of the city's northeast and northwest are not yet covered.

"Wireless Philadelphia" was then-mayor John Street's grand vision to blanket the city in a WiFi signal.  Initially it was envisioned as a free service, but that concept was quickly dropped and the city accepted Earthlink's bid to construct the network at no cost to the city.  That revenue model allowed Earthlink to charge its current rates.

Street also sought to bridge the so-called "digital divide" by offering the signal to low-income families at reduced rates.

Last month, as Earthlink bailed out, Mayor Nutter that no city money would be used to keep the project running, though he agreed that the original goals of getting low-cost Internet access to Philadelphians was a worthy one.