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On Life Support, Philly Wi-Fi Gets A Reprieve

At this point, jumping in to rescue a failing municipal Wi-Fi network seems like taking over as manager of the Mets: you're unlikely to succeed, but at least you're almost certain to do better than the last guy.

That must be the thinking of Network Acquisition Co. LLC (NAC), the local investor group that plans to assume operation of the existing EarthLink wireless network in Philadelphia. Fronted by the former head of Wireless Philadelphia (the nonprofit originally formed to spearhead the network venture), NAC plans to "enhance and expand the network as part of their plan to eventually bring free wireless to the city."

This quixotic notion, now fallen into disrepute as cities around the country have seen their ballyhooed wireless network build-out go belly-up, isn't quite so far-fetched as it might seem.

EarthLink, after all, already has sunk some $17 million into installing access points across the city. Letting them become pigeons' nests isn't exactly a good use of existing resources.

Mayor Michael Nutter had no interest in taking over the network, even when EarthLink, which slunk away last month, offered it free of charge. But Philadelphia Councilman Bill Green, believing that the network could be saved and run at no expense to the city, began looking for a group of local businessmen to take over the initiative. Green enlisted Greg Goldman, former executive director of Wireless Philadelphia, to find an alternative investor. Rick Rasansky, a Philadelphia entrepreneur and co-founder of the regional chapter of Mobile Monday, a mobile and wireless industry group, helped lead the negotiations on behalf of the newly formed NAC.

"We felt that the unique business and community opportunities that would be made possible by ubiquitous Wi-Fi coverage in Philadelphia more than justified the additional investment needed to complete the network build," Rasansky said in a statement.

How much that additional investment will be hasn't been specified; it's unlikely to be more than a few million. According to calculations from Councilman Green's office, the network, which today covers 80% of the city, could save Philadelphia $3 million a year in operating and telecom costs. The benefits to local businesses and overall economic development are more nebulous, but a business model based on a committed local investor, with a Wi-Fi network that will be integrated with other wireless and wired technologies, could actually be viable.

Philadelphia's extensive higher-education and health-care institutions are among those expected to pay for services from the new system. Free, public Wi-Fi access will be available using spillover from the core network -- but it won't be the primary use of the infrastructure.

As a handful of other communities have shown, "if you build a network to withstand the rigorous demands of government communication, the resulting excess capacity can serve many constituent needs," says wireless network consultant Craig Settles.

More power to 'em. The flops of pie-in-the-sky free-Wi-Fi ventures haven't totally dimmed the luster of ubiquitous wireless coverage in major metro areas. It will be interesting to see if this new group can make a go of it.

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