Silicon Valley’s Wi-Fi Network faces more troubles ahead as Azulstar, a small municipal wireless company based in Michigan, was not able to raise the approximately $100 million it needed to build the municipal wireless network, reports Infoworld.
The Silicon Valley Metro Connect consortium is seeking another contractor to handle the infrastructure as a whole, said Seth Fearey, vice president and chief operating officer of Joint Venture: Silicon Valley Network, the civic group that spearheaded the project.
Esme Vos of Muniwireless, promotes the “anchor tennant” approach. With firm dollar commitments in hand, it would have been easier for them to get investors interested, she said. The way it was done, it’s hard to imagine what partner would step up to build and run the network, Vos said.
A new builder-operator wouldn’t have to raise $100 million all at once, Joint Venture Silicon Valley’s Fearey pointed out. All it would take to get a commercial network off the ground would be $10 million to $20 million, he estimated. Silicon Valley Metro Connect, the consortium that was chosen to build the system, planned to build and operate a giant regional wireless network encompassing 1,500 square miles, 2.4 million residents, and 42 municipalities. Based on the Cisco mesh wireless infrastructure, the network project is looking more and more like a pipe dream that will never get built.
According to ABI research director Stan Schatt, municipal Wi-Fi networks “need to concentrate on a narrower, role centering on public safety and municipal workers,” such as those in New Orleans and Chicago.
Meanwhile, Clearwire will provide discounted service of $9.95 per month for qualifying low-income citizens covering up to 5% of the total households in Grand Rapids. To better serve visitors and occasional users, free Wi-Fi hot spots will be provided throughout the City. Grand Rapids and licensed Mobile WiMAX operator Clearwire have a deal similar to municipal WiFi contracts that provide public rights of way for Clearwire infrastructure in exchange for discounted service.
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