February 13, 2006

Various members of a citywide wireless data network in Boston and the companies that currently offer Internet access in that city are eyeing each other warily, as a new Boston Wireless Task Force opens its campaign to turn the entire city into a Wi-Fi hot spot.

More specifically, representatives of Comcast, Verizon Communications and RCN Corp., which all provide high-speed Internet access to thousands of Boston businesses and households via either cable modems or digital subscriber lines, said they are taking a wait-and-see attitude toward the task force unveiled by Mayor Thomas M. Menino last week.

But the effort clearly is raising anxiety at the Internet service providers, which have watched with alarm as other cities and towns across the nation have launched universal wireless Internet initiatives.

''We would certainly see any new entrant into the broadband market as competition," affirmed Cliff Lee, a spokesman for Verizon.

Verizon supported a Pennsylvania bill prohibiting municipalities from building WiFi networks, but it ultimately struck an accord exempting Philadelphia.

Nationwide, cities and towns from San Francisco to Cambridge to Tempe, Ariz., are either working on or have launched WiFi networks. WiFi, short for wireless fidelity, allows laptop computers and other devices to connect to the Net at high speeds via radio waves.

Task force members, meanwhile, have begun fielding inquiries from Internet service providers and other vendors that want to learn more and potentially participate in the initiative.

The panel is developing a process to solicit ideas and feedback from vendors.

''We are in information-gathering mode, and will be for some time," said task force co-chairwoman Joyce Plotkin, president of the Massachusetts Technology Leadership Council, who said the panel plans to hire a project consultant.

''We are looking at all types of technology and business models. We are open to proposals and recommendations from anyone who wants to make them."

As the task force ponders issues ranging from how much to charge for wireless Internet service to how to install WiFi antennas on city street lights, industry leaders are weighing how to respond and whether to participate.

Few think the WiFi initiative poses a near-term competitive threat to the companies, which will continue to offer high-speed data and Internet services.

''None of the people in the city or on this task force want to create a Comcast competitor or a Verizon competitor," said task force member Michael Oh, founder and chief executive of Tech SuperPowers and Newbury Open Net, a three-block wireless hot spot on Newbury Street in the city's Back Bay neighborhood.

Oh said the city's network would focus on offering free or cheap service to people who aren't currently online or are using slow dial-up connections.

Oh described the city's network as ''an in-between step" that may eventually help the Internet service providers.

''They might lose a little business," he said, ''but they might get more people using the Internet."

Cable company representatives offered cautious and diplomatic responses to the Boston effort.

''We look forward to learning more about this initiative from the mayor and the task force," said a Comcast spokesman, Marc Goodman.

''We view this as a possible opportunity to work with the city to help evolve our customers' Internet service," said Brooke Tyson, a spokeswoman for RCN.

Michael J. Balhoff, a telecommunications industry consultant in Baltimore, said the companies are reluctant to criticize municipal efforts publicly because they depend on government for licenses, construction permits, and franchise renewals. But behind the scenes, he said, there is considerable discontent in the industry.

''If they were entirely free to say what they thought, they would oppose it vehemently because they feel that government getting involved distorts the marketplace," Balhoff said.

Balhoff said he believes the cable and phone companies would be better off not getting involved in the municipal WiFi efforts and simply waiting for them to unravel. ''I believe they will prove to be insufficient investments in a very short period of time," he said.

Source: Boston.com

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