AT&T, MetroFi Bid to Build Wi-Fi Network

AT&T joined the municipal Wi-Fi fray Friday by submitting a joint proposal with MetroFi to operate a wireless network in Riverside, Calif. Free access would be provided by MetroFi throughout the city with 500kbps downstream and 256kbps upstream according to the proposal.

To support the network, advertising would be inserted into every Web page that the user visits. Those who wish to have an ad-free service would have an option to subscribe to a 1mbps pay service for USD $19.95 through AT&T.

The network would cover about 65 square miles and joins 12 other cities where MetroFi currently offers service. The company recently won contracts to provide service in Portland, Ore. and Aurora, Ill., and already runs an ad-supported network in Sunnyvale, Calif., and subscriber networks in Cupertino and Santa Clara, Calif.

MetroFi was founded in 2002 and is headquartered in Mountain View, Calif. Although early on the company lagged behind apparent sector leader Earthlink, in recent months it has become more aggressive in pursuing new contracts.

Some analysts see the partnership as an important step forward for the industry. "The deal could have major impact on the whole muni wireless space," web pundit Om Malik said.

"First of all it validates the MuniFi movement, which so far has been vehemently opposed by the incumbents," he explained. "Secondly, it also puts a serious crimp in the plans of others, namely Earthlink, which have been counting on the MuniFi business to future proof themselves."

The reasoning for municipal Wi-Fi differs from city to city. Some see it as a way to attract more high-tech businesses to their cities, while others, such as Philadelphia and Baltimore, see it as a way to close the so-called "digital divide."