IP Democracy: Big Battle Brewing in SF over EarthLink-Google Wi-Fi

San Francisco Mayor Gavin Newsom is in for a political fight to rescue his decision to give EarthLink, which has partnered with Google, a city-wide contract to construct a Wi-Fi network and offer Wi-Fi services. I know that the politics of the Wi-Fi contract have turned nasty not only because of the scattered press reports on the brewing fight between Newsom and SF’s Board of Supervisors, but also because someone sent me a copy of a report prepared by Harvey Rose, Budget Analyst for the Board of Supervisors. Although several papers and trade publications wrote about Rose’s report, I couldn’t find a copy online.

Clearly the intent was for me to blog about the report, which raises many concerns about the city’s deal with Earthlink, if not to post the report (which I have because, actually, it’s a pretty thorough assessment of various Wi-Fi scenarios in San Francisco.) The report had been ordered by the Board of Supervisors, which asked Rose’s office to look at the feasibility of the city — and not a private company — constructing and operating a Wi-Fi network.

Rose’s report concludes that it might be financially feasible for the city to build and run its own Wi-Fi operation, but that muni-ownership would be risky. Although not an overtly slanted, obviously political document, Rose’s report also slams the EarthLink deal.

Aside from limiting competition due to EarthLink’s control of the unlicensed radio bands, not to mention Google’s role as sole ISP, the deal won’t even help the city’s low-income residents, who might have to shell out $80 to $200 for CPE plus pay $21.95/month for relatively low-speed broadband service, the Budget Analyst states.

Rose recommends the city put out another RFP to look at a variety of business models aside from the EarthLink-Google idea, particularly given that the report suggests that San Francisco didn’t conduct the right due diligence in the first place.

This is bad news for Newsom, but perhaps even worse news for EarthLink, which has staked much of its growth strategy on muni-Wi-Fi. Don Berryman, who heads EarthLink’s municipal efforts, has been working overtime to save the deal.

A majority of the Board of Supervisors has to approve the EarthLink contract, and indications are that Newsom and EarthLink could lose. The vote is slated for early next month. Meanwhile, Newsom has issued his own report, one that has been in the works for months, called the Digital Inclusion Strategy, which promotes increased digital literacy, education and computer ownership, among other ideas, as steps that can close the digital divide in San Francisco.

Posted by Cynthia Brumfield on January 19, 2007 1:01 AM to IP Democracy