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MetroFi Folds; Municipal Wi-Fi Takes Another Blow


Easier imagined than realized

Free wi-fi service MetroFi is pulling out of the 10 cities where it operates wireless networks and is also exploring opportunities to sell.

MetroFi served ad-supported wireless in seven cities in California, including San Jose, Santa Clara and Cupertino; Aurora and Naperville in Illinois; and Portland, Oregon. (In 2006, Microsoft partnered with MetroFi to serve ads for the Portland project.)

It follows on the heels of EarthLink, which withdrew its Philadelphia wi-fi service two weeks ago. The Philly project was three years old. EarthLink first announced it would begin scaling back in November of last year.

Last night MetroFi sent the following email message to former users in the Sunnyvale area:

It is with great regret that we notify you of our need to discontinue the MetroFi FREE and MetroFi Premium services effective June 20, 2008 in Sunnyvale. It has been our pleasure to be your provider of Internet access and we have appreciated your support.

So that you do not find yourself without access to the Internet, please find another service provider as soon as possible.

The somber letter advised that ex-users check Wi-Fi Free Spot for alternative wi-fi hotspots.

"Municipal wi-fi," the process of blanketing a community with wi-fi access, has suffered peaks and valleys of popularity. Last year a study found one-third of US internet users would switch from their current ISP to a publicly-subsidized service if it were available. Wi-fi was also dubbed a "public utility" by MultiState Associates, which lobbied for municipal broadband in small towns.

But while there is no shortage of desire for community wireless service, it has been harder to implement in practice. Many have tried, including AT&T, Microsoft, Google, Yahoo and Earthlink; but none have prevailed on a grand scale, mainly because of issues with economic scalability.

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