Google offers San Francisco free wireless
Competitors skeptical of business model: report


WASHINGTON (MarketWatch) - Google Inc. has offered to provide San Francisco with free wireless Internet access at no cost to the city - a move that heightens speculation the firm may seek to establish a free, nationwide wi-fi network that could cause problems for existing Internet service providers.

The Mountain View, Calif.-based search engine announced Friday that it had responded to a request for information from the city of San Francisco to test local Internet service through wireless access. Other companies, including Earthlink Inc. (ELNK: news, chart, profile) have also submitted bids, The Wall Street Journal reported.

Google says it has no plans to attempt to offer such Internet access beyond the San Francisco Bay Area, the Journal said. But the move is still expected to capture the attention of telephone and cable companies whose core businesses including providing Internet access for a fee, the newspaper noted.

Meanwhile, offering a free city-wide network would put Google in competition with established Internet service providers who provide broadband access, including telecom giant SBC Communications Inc. (SBC: news, chart, profile) and cable operator Comcast Corp. (CMCSA: news, chart, profile) .

At least one potential competitor was playing it cool over the prospect of a nationwide, free wireless network, however, arguing that it would be difficult to make a free model work even on a city-wide basis.

"We've looked into free service, and we haven't found a model where free works," Donald Berryman, executive vice president of municipal networks for Earthlink Inc. (ELNK: news, chart, profile) , told the San Francisco Chronicle. "At some point free becomes less sustainable because there's no way to upgrade service and the networks when no one's paying for it."

Google has limited experience providing wi-fi access. So far, the firm has tested wi-fi at a gym and café near its Mountain View, Calif., headquarters, and in New York City's Bryant Park, the Chronicle said, noting that the firm also sponsors free wi-fi service in San Francisco's Union Square.

Chris Sacca, a principal for new business development at Google, told the Journal that he didn't see the service competing with telephone and cable companies. The firm is taking a "partner-friendly approach" and has consulted with access providers about the San Francisco proposal, he said.

Others believe Google has plans beyond the Bay area.

"This is really exciting because they're not going to just do this in San Francisco, if they are serious about it," Jeff Thompson, a founder of TowerStream, told the Chronicle. TowerStream sells wireless Internet connections to businesses.

 

i am in the sf bay area

and around here, comcast has pretty much monopolized the market.... we have comcast @ my crib

 

comcast is THE monopoly. WTF

 

there are otehr companies... but comcast pretty much owns most of the market

 

The other compnies unfortunately can't compete with Comcasts service. So for now I will continue to get raped every month

 

well, then have have what others dont, its still not a complete monopoly, you can go elsewhere for service... no one else will unfortuneately spend the capital to make their service as good as comcast... i am not blaming the otehr companies, but with all the $ being thrown around.... to each his own.... you either put up or shut up basically....

 

i love san francisco

 

Wonder if it'll have the same fate as Metricom....?

 

this is just a start of google's planned world dominiation... lol.....

just kidding google!!!!! i wanna work for you guys...

 

I wonder how you supply Wi-Fi to a city? High powered wireless routers every hundred yards?

I doubt this will ever put ISP out of business since the service will be flakey at best. Unless they move out of the Wi-Fi days and into something a little better.

It would be nice to get good reception in SF. One less bill to worry about.

 

I think there's some newer equipment out there that'll broadcast a signal quite a bit further than your average SOHO wireless router. I'm jealous only CA gets it.

 

well its still gonna be wi-fi. Even if its an amped signal its not going to pentrate like a cell phone signal can.

I'm mostly just jealous also though..