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Municipal Wi-Fi thrives – on a small scale

Big-city wireless Internet plans took a hit this summer, but places like Owensboro, Ky., and Rio Rancho, N.M., put networks in place.

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The dream that free wireless Internet hubs would blanket downtowns across the country abruptly faded for several cities this summer. In San Francisco, Houston, Chicago, and St. Louis, plans that were supposed to make Wi-Fi access as cheap and ubiquitous as tap water seemingly all fell apart at the same time.

With the collapse of several major metropolitan projects, analyst forecasts for municipal Wi-Fi turned dark. Business models were unproven. Eager hype fizzled to dismissive pessimism.

But not everywhere.

While big-city Wi-Fi wilts, hundreds of smaller communities have fostered thriving networks. These success stories often take place in cities and counties few have ever heard of – Owensboro, Ky.; Rio Rancho, N.M.; Kutztown, Pa. Their town borders don't extend very far, their populations are relatively small, and their main streets may be unglamorous. But in many ways, that's how they pulled off what most metropolises have not.

"Many of the cities that are building successful Wi-Fi networks are those that never had the luxury of dreaming that Earthlink or some other major company would drive by and offer them a great deal," says Esme Vos, founder of the industry's news and consultancy website MuniWireless.com. It was this do-it-ourselves attitude, she says, that shepherded many of the successes.

This summer was hard on urban Wi-Fi. Exhibit A: the extreme corporate shake-up at Earthlink, one of the biggest names in municipal wireless. In the same few days, the Atlanta-based Internet provider abandoned its much-heralded proposal to build San Francisco's wireless network, faced a $5 million fine from Houston for missing a contractual deadline in rolling out that city's network, and announced it would shed some 900 jobs – half of its staff – including the company's head of municipal Wi-Fi.

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