Wireless (and Wired) Minneapolis

Good news for the Madison, Wisconsin wireless project. AOL (part of the Time Warner media empire) has pulled out of negotiations to provide wireless Internet connections in downtown Madison.

Madison's network was to be built using a franchise-like business model - the same business model the Minneapolis City Council has approved.

The city chose AOL's bid in February. Contract negotiations were already two months behind schedule when the private company pulled the plug. Scott McDonell, a technology expert in the state Department of Administration, said there was no indication AOL was unhappy. "The city was bending over backwards to accommodate them. I didn't see any problems," said McDonnell.

Cindy Harvey, a spokeswoman for AOL, said the decision was due to "a national strategic shift." "At this time, our focus is on partnering with established network operators rather than building out the networks on our own."

AOL is responding to the FCC's recent decisions that deregulate the broadband market by granting cable and telephone companies complete authority over who may use their high-speed networks, and what data those networks will carry. The decisions will most likely lead to even greater dominance in local broadband markets by incumbent cable and telephone service providers.

The Capital Times calls this a "welcome turn of events. Rather than trying to lure AOL back into negotiations, or looking for another for-profit firm that wants to cash in on Madison's desire for more flexible and mobile communication technologies, the city should begin taking steps to develop a municipally run wireless service."

The Madison paper goes on to say that the city should not fall for the lie being peddled by the cable and phone giants - that broadband wireless networks are difficult to develop and expensive to operate.

Costis Toregas, retired president of the Washington, D.C.-based organization Public Technology Inc., says citywide wireless Internet "comes as close to a free lunch as I've ever seen in my years watching technology." Cities need the fiber optic backbone for municipal communications. Wireless creates a low-cost communications system for everything from police reporting to meter reading to video surveillance. Once the network is built, it can easily provide free or low-cost Internet access to residents and businesses.