Huge 'Wi-Fi' project is in for some static: bureaucratic delays plague similar plans in other cities.

If recent history is an indicator, realizing Mayor Antonio Villaraigosa's vision for "Los Angeles 2.0"--a city totally wired for high-speed Internet access through a "Wi-Fi" network--won't be easy.

Bureaucratic delays have stalled similar proposals and industry observers say a clearly workable business model for a municipal Wi-Fi system has yet to emerge.

"With L.A. Wi-Fi, we are dedicating ourselves to the idea that universal access to technology makes our entire economy stronger," said Villaraigosa. The mayor's plan is to allow a company to take over the building of the network and then recoup its costs by charging for advertising once the system is running in 2009. Computer users would get basic access to the Internet for free, although they would have to pay for upgrades.

"They incur the costs and build the network," said Janelle Erickson, a spokeswoman for the Mayor. "It would be a win-win for the city."

"Wi-Fi" is short for wireless fidelity, and refers to wireless signals that enable computer users to connect with the Internet. Villaraigosa's plan would create the nation's largest urban Wi-Fi network.

More than 300 municipalities nationwide are launching similar plans. As the size and scope of the projects increase, however, so does the difficulty in installing them.

Municipal Wi-Fi networks set up in other big cities have cost from $125,000 to $175,000 per square mile. Using those figures, Los Angeles' 498 square miles could run from $62 million to $80 million to complete the network.

The city wants the company that sets up the system to give 5 percent of its revenue to the city.

Time Warner Cable, which operates its Road Runner Internet service over cable lines, said it consulted with the city on setting up a Wi-Fi network, but would have to wait to see more details on what the city will demand.

"We'll look at the details and see if they make business sense," said Time Warner spokeswoman Patti Rockenwagner. "We'll make that assessment then."

Earthlink Inc., which with Google Inc. is already working with San Francisco's Wi-Fi system, said that bidding on the Los Angeles system might be a possibility, but wouldn't confirm any details on a bid yet.

The city is currently accepting Requests for Qualifications in order to establish a team of consultants to guide the effort. Once assembled, that group would research the issue, set parameters for the bids and seek Requests for Proposals from the private sector. After reviews, the group would pick a firm or firms to set up the system.

Towerstream Inc., a Middletown, R.I.-based Internet provider that built a similar system for New York's Union Square, said it may bid on the Los Angeles Wi-Fi network, but is waiting to see the city's demands, too.

Towerstream chief executive Jeff Thompson said he's become wary after seeing similar plans in Philadelphia and San Francisco win approval by those cities' councils, only to be stalled by various municipal agencies.

"The cities want contracts that make sure you'll get certain things done for the city," Thompson said. "Philadelphia was awarded two years ago. San Francisco was awarded a year ago. You'd think that once they won the RFP, they could just put the system up.... The business model of supplying broadband for cities hasn't been proven yet."

United Online Inc., the Los Angeles-based operator behind the Net Zero and Juno Internet providers, would be another potential investor. Chief Executive Mark Goldston was traveling and unavailable for comment, however.

One stumbling block may be the necessity to use streetlight poles as conduits for the Wi-Fi systems. After months of delaying, Southern California Edison Co. only last week said it was willing to allow Earthlink access to its streetlights when building a network for the city of Santa Ana.

In Los Angeles, the city's Department of Water and Power actually owns the streetlights and any company setting up a Wi-Fi system would have to pay the city for using any of the city's 220,000 streetlights.

"Those streetlights provide the perfect place to connect these Wi-Fi antennas," said an analyst in the Mayor's office.

DAN COX

Staff Reporter