Subject: [PA-ComNet]Assembly Bill to Pre-empt City & County WiFi Free Zones ? (from San Francisco Chronicle)

From: "Brian Moura" <[email-masked]>
Date: Mon, 2 May 2005 12:51:36 -0700

Hmm, I haven't seen anything like this yet in California.  But similar bills
have been passed in other states.....

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http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2005/05/02
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"Potential roadblock

A law proposed in the state Assembly could ultimately block cities -- except
in extenuating circumstances -- from creating publicly funded Wi-Fi
networks. It's part of legislation that calls for crafting a state broadband
policy."

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S.F. getting 2 new hot zones for Wi-Fi -- Fillmore, Castro
AnchorFree to offer wireless service to neighborhoods for free
Verne Kopytoff, Chronicle Staff Writer
Monday, May 2, 2005

Connecting to the Internet from wherever you are, whether at a cafe table on
the sidewalk or at a street corner, is getting a lot easier in the Bay Area.

Several new Wi-Fi hot zones have been installed that cover entire
neighborhoods and, in some cases, entire cities, allowing people to go
online without having to plug a telephone or broadband wire into their
computer.

The newest hot zones are to be introduced as soon as this week in San
Francisco, covering a four-block swath of Fillmore Street and two blocks of
Castro Street. In a departure from the industry norm, a company is offering
the service for free.

"It provides the ability to have a line outside the home or office," said
David Gorodyansky, president of AnchorFree Wireless, the Sunnyvale firm
behind the newest Wi-Fi networks.

"You can go from a Starbucks to the bench outside and breathe fresh air and
always have access to information."

But expanding wireless Internet access isn't always as feel-good as that. It
has become a political battleground between two competing interests.

On one side are city governments that are considering creating municipal
wireless systems to help bridge the digital divide. On the other side is the
telecommunications industry, which sees such efforts -- funded by tax
dollars -- as a threat to private businesses.

Last year, San Francisco Mayor Gavin Newsom unveiled an initiative to
blanket all of San Francisco with free Wi-Fi. A feasibility study is under
way. The many options include creating a municipally managed Wi-Fi service
or using private companies. A report on the matter is expected later this
year.

"Let's bring in an expert, assess what is going on in the marketplace, look
at the assets that the city and county have, and get recommendations about
what we can do," said Chris Vein, senior adviser for technology to the
mayor.

A free Wi-Fi is already available in Union Square, but some users complain
that the signal is spotty. The city has requested proposals for expanding
Wi-Fi connections to other areas including the Ferry Building Plaza, Civic
Center and Portsmouth Square in Chinatown.

David McClure, chief executive of the U.S. Internet Industry Association, a
trade group of Internet and telecommunications companies, opposes most
public funding of Wi-Fi. He fears that cities will stifle competition to
protect their investments.

In any case, private firms are better equipped to do the job, McClure said.
Taxpayers shouldn't have to bear the financial risk, he added.

"What we are really doing is creating a massive white elephant project for a
handful of citizens," he said.

Potential roadblock

A law proposed in the state Assembly could ultimately block cities -- except
in extenuating circumstances -- from creating publicly funded Wi-Fi
networks. It's part of legislation that calls for crafting a state broadband
policy.

AnchorFree's Wi-Fi network in San Francisco is entirely funded by the
company. No taxpayer money was used.

Blanketing an area with Wi-Fi requires installing antennas as close as every
600 feet. They transmit and receive signals from computers that have the
necessary hardware and software.

Over the past couple of years, Wi-Fi has increased sharply in popularity, at
least in the Bay Area. Many Starbucks and McDonald's offer connections for a
fee, as does San Francisco International Airport.

But their coverage is typically limited to small areas such as a few rooms.
The larger zones available today -- such as downtown Half Moon Bay --

are largely a recent phenomenon, with a few exceptions.

For example, SFLan, a volunteer group, has set up free Wi-Fi connections
across parts of San Francisco for several years. The little-known effort has
only a few thousand users, said Ralf Muehlen, the group's director.

AnchorFree's ultimate goal is to make its free service profitable. The
company is guarded about the details of its strategy, other than to say it
will include advertising on its home page and a cut of any e-commerce
transactions.

Efforts to offer free dial-up Internet access during the dot-com boom
failed.

AnchorFree declined to disclose how many users it has.

The neighborhoods designated by AnchorFree are high-density shopping
districts where many people use their laptops in cafes and restaurants. The
signals should be strong enough so that people can log on from indoors, the
company said.

Privacy has long been a concern with Wi-Fi because of the potential for
hacking. The industry has improved security measures, but some worries
persist.

Vein, from the mayor's office, applauded AnchorFree's service, saying, "This
is an innovate approach to offering free Wi-Fi, and we're supportive of it."

He added that it's unclear whether the company's business model will be able
to support Wi-Fi coverage for the entire city and that other alternatives
should be explored.

AnchorFree's Wi-Fi service along Fillmore Street between Sacramento and Bush
streets is already operational. Castro Street, in the heart of the Castro,
could be turned on as soon as midweek, the company said.

Wi-Fi in other areas

Earlier this year, AnchorFree introduced Wi-Fi service along Union Street
between Fillmore Street and just past Laguna Street. Around the same time,
it offered access along Chestnut Street between Divisadero and Fillmore
streets.

AnchorFree started with a different business model when it introduced its
first Wi-Fi hot zone along University Avenue in downtown Palo Alto last
year. It initially charged subscriptions but switched to free connections in
March. An even bigger Wi-Fi network has been installed in Santa Clara and
Cupertino. The entire cities were covered with wireless broadband by
MetroFi, a Mountain View company.

The service, which costs $19.95 a month, emerged from testing in April.
Subscribers get Wi-Fi access whether from their home computer or from a
laptop at a cafe.

Chuck Haas, MetroFi's chief executive, said the cost is far less -- half as
much in some cases -- than what other broadband Internet companies charge
because his company has lower costs.

"We're not digging up the streets or paying phone companies for copper wire
in the ground that makes things less economical," Haas said.

MetroFi plans to introduce similar service in Mountain View and Sunnyvale
this summer.