Philly Wi-Fi Network Near Approval

The City of Philadelphia said Wednesday that both it and Wireless Philadelphia, a non-profit group, had signed agreements with EarthLink to begin construction of a wirlesss network that would cover the city. Mayor John Street urged City Council to approve the deals, which would last for ten years.

Under the terms of the deal, EarthLink would rent space on 4,000 city light posts to install its equipment at a cost of $74 per light post. The network would cover approximately 135 square miles, making it one of the largest Wi-Fi networks in the world.

Five percent of EarthLink's revenues would be donated to Wireless Philadelphia, which would then provide computers to low-income households. While a wholesale rate of $12 USD per month would be charged to other Internet service providers, EarthLink would provide access to 25,000 low-income households for $9.95 USD per month.

Free Wi-Fi hotspots would also be offered in 22 public locations around the city, according to the contract.

"This is an opportunity we have seized as we continue building on all the momentum growing in Philadelphia over the last few years," Street said in a statement. "Creating a citywide wireless network is yet another accomplishment distinguishing our vibrant City as we compete in the national and international marketplace.”

The wireless network will be built at no cost to the city, and it is estimated EarthLink would spend some $20 million to build it out. As many as 80,000 subscribers are expected by the end of 2008.

Following the announcement, EarthLink municipal networks division president Donald Berryman said that company planned to make a bid to offer Wi-Fi in Chicago after the city expressed interest last month.