WiFi, why not?

When your city utility bill arrives, could it soon include water, garbage ... and wireless broadband Internet?

Legislators attending the Annual Meeting of the National Conference of State Legislatures in Seattle heard a panel of experts discuss the possibilities and pitfalls of municipal governments building and operating wireless broadband Internet service, or WiFi.

At least 40 city and other local governments now provide wireless hot zones to their citizens via WiFi networks. Another 34 municipal governments are considering the idea. Supporters say the nation is losing its technology lead, and broadband Internet is the 21st century equivalent of getting electricity and water to residents.

WiFi can increase the number of people who can access the Internet, increase the speed of the Internet service and promote economic development. But should cities provide it? Opponents say it is an expensive investment and may hamper private company participation in developing telecommunications infrastructure in communities.

Steven Titch, senior fellow for IT and telecommunications policy at the Heartland Institute, says the comparison to traditional utilities like water is inaccurate. He points to a July 2005 report by Jupiter Research that says 50 percent of municipal initiatives to establish broadband service will fail. The report says the cost of $150,000 per square mile over five years could prove difficult for local governments already struggling with expenses.

The demand to bridge the "Digital Divide" drives cities like Philadelphia to build and operate lower-cost broadband like WiFi, according to Pennsylvania Representative W. Curtis Thomas. "The underlying notion was that the marketplace would come up with a way to spread broadband. That has not happened," says Thomas, vice-chairman of the NCSL Communications, Technology and Interstate Commerce Committee.

Thomas believes public-private partnerships are crucial to the success of municipal WiFi, so municipal governments can join with Internet service providers and telecom companies in developing and operating the networks.

Pennsylvania and Florida have state laws that require local governments to approach telephone and cable companies before pursuing large-scale Wi-Fi deployments. Nebraska prohibits public power companies from entering the high-speed Internet service business through the end of 2007. Other political subdivisions of the state are banned indefinitely from selling telecommunications services. The law also calls for a broad study of municipal WiFi in the state. Maine is studying the issue.

And in Congress, two proposed bills take opposite sides. Texas Representative Pete Session wants to prohibit state and local governments from offering Internet service if a private provider already does. Arizona Senator John McCain and New Jersey Senator Frank Lautenberg are sponsoring a bill that says "no state can prohibit a municipality from offering broadband to its citizens."