The Downtown Phoenix Partnership is moving ahead with its plan to create a Wi-Fi network covering the 90-square-block area of Copper Square, pro¬viding wireless high-speed Internet service to residents, conventioneers, business travelers and others.
Plans call for the network to be up and running by February 2009.
Dan Klocke, the group's director of planning and economic development, said it is moving forward with the project based on results of a feasibility study that confirmed Copper Square is a small enough area with an adequate number of people for a Wi-Fi system to be economically viable.
The partnership pooled its money with Arizona State University, the city of Phoenix and Maricopa County to pay $75,000 to Civitium LLC, a Georgia-based planning firm for community broadband initiatives, to conduct the study.
Klocke said the decision to move forward also was based on the fact that Minneapolis, San Francisco, New York and other cities operate successful Wi-Fi networks.
Chandler and Tempe, early adopters of Wi-Fi networks, both experienced serious problems with the technology in January when Kite Networks, owner and operator of the Wi-Fi system in both cities, started reassessing its financial capital and ownership structure.
Both East Valley cities now are evaluating their legal options, which may include assessing penalties, terminating the agreement or taking equipment down, said Margaret Coulter, Chandler's communications manager.
"Right now we're in a holding pattern," Coulter said. "We know Wi-Fi is the way of the future, but the city is not interested in operating the network."
Only one-fifth of Chandler's network is complete.
Klocke said Tempe and Chandler encountered problems with their networks because they tried to cover large areas with inferior equipment.
"Given some of the lessons we've learned over the past four or five years, we know we can offer a better product, and one that does what it's expected to do," he said.
The Downtown Phoenix Partnership sel¬ected Cheetah Wireless Technology Inc. of Las Vegas to provide Wi-Fi service in Copper Square. Roy Hughes, enterprise technology manager for the city of Phoenix, said Cheetah secured the bid because it has a wealth of experience and presented a total package of technology and marketing. The company has established Wi-Fi systems in Las Vegas; Encinitas, Calif.; and Primm and Boulder City, Colo.
Hughes said Cheetah also has access to capital for equipment and the willingness to implement the project without any financial commitments from the partnership.
Cheetah, founded in 2002 by President and CEO Mitch Gonzalez, has 11 employees.
"We're excited about Phoenix, because having Wi-Fi downtown is going to open doors," Gonzalez said.
Cheetah has not yet developed subscription rates for Phoenix, but hopes to offer plans similar to those in Las Vegas: $6.99 for an hour of service, $11.99 a day, $26.99 for three days and $36.99 for seven days. It also offers a premium plan for students at about $7 a month.
Gonzalez said 50,000 people a month connect to the Las Vegas network, and an additional 5,000 businesspeople a month buy service to use along the Strip.
The Downtown Phoenix Partnership recently extended its contract with Civitium, agreeing to pay the firm an additional $15,000 to oversee contract negotiations with Cheetah. Civitium also will work with the city of Phoenix to establish right of use agreements for municipal assets, work with utility companies on power rates, work with the partnership's legal counsel on developing a standard contract, and provide insight into industry wireless agreements and best practices.
"We still have a lot that needs to be done over the next six to 12 months to make this Wi-Fi project successful," Klocke said. "But when it's done, it will be another tool in our toolbox to promote ... job growth, business growth and economic development."


Author: Kerry Duff
Source: The Business Journal