Wireless (and Wired) Minneapolis

Copyright 2006 Star Tribune
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Star Tribune (Minneapolis, MN)

February 25, 2006

Minneapolis council OKs citywide Wi-Fi plan;
The City Council approved a public-private Wi-Fi plan, saying public ownership is too risky.

BYLINE: Steve Alexander, Staff Writer

BODY:


The Minneapolis City Council approved a plan Friday for a public-private citywide Minneapolis Wi-Fi network, ending a drive by opponents who wanted the city to own the network instead.

The City Council said the public-private plan spares the city from start-up costs and potential legal trouble. Wi-Fi stands for "wireless fidelity," a technology that today allows laptops to reach the Internet in public places such as coffee shops, hotels and airports.

Under the plan that the council approved, a private company will build, own and operate the city network at its own expense. The city will become an anchor tenant, and consumers and businesses will be encouraged to buy Internet access and other services. A consumer with a Wi-Fi equipped laptop could access the network anywhere in the city for about $20 a month.

City officials said the council's approval of the Wi-Fi plan prevents delays that could have endangered the project.

"A big delay could have caused the project to lose momentum," said Karl Kaiser, the city's chief information officer. Because Chicago and Houston are competing for the attention of companies willing to build city networks at their own expense, project delays in Minneapolis might have encouraged those companies to go elsewhere, he said.

The City Council also authorized the city to begin pilot projects to be run by the finalist companies vying to build the network, EarthLink of Atlanta and US Internet of Minnetonka. A contract could be signed with one or both firms by fall, and the network could be completed by late 2007 or early 2008, Kaiser said.

Council members declined to support public network ownership because they said Minneapolis can't afford the $20 million to $25 million up-front cost of building its own network and can't risk possible legal consequences.

Telephone and cable TV companies might sue the city on the grounds that a Minneapolis public network was using tax dollars to improperly compete with them, said James Farstad, a city consultant. In addition, legislation is pending in Congress that might outlaw city-owned networks, he said.

In a concession to proponents of a city-owned network, the council amended the plan to include a "community benefits agreement" designed to make sure the project helps close the "digital divide" between those who can and can't afford Internet technology.

Proponents of a city-owned network said it could bring the city more money and be more responsive to citizens.

"A municipally owned network is a potential gold mine," said a letter to a council member from Becca Vargo Daggett, a Minneapolis researcher with the Institute for Local Self-Reliance, which had favored public network ownership.

Opponents also claimed city officials hadn't studied public network ownership sufficiently before rejecting it in favor of the public-private business plan. But city officials said there isn't time.

"Today we are at the cutting edge" of cities choosing companies to build wireless networks, said Council Member Elizabeth Glidden in explaining why the city couldn't afford to spend three more months studying a public ownership plan. "But that could change in 90 days, and we might be less attractive."