Wifi Revolution

High rising cost and shrilling technical issues have forced AT&T (News - Alert) to pull back its plan to provide free wireless Internet access in St. Louis.

 

As mobile phones have started mimicking computers and as wireless services are sparking various innovative technologies, operators are looking to offer wireless Internet access that make their services more effective. But, there are certain regulatory issues that can hamper the operators’ plans for fast expansion and that is exactly what AT&T is facing today.

 

Back in February, AT&T had announced plans to offer St. Louis wireless Internet service across the city's 62 square miles, with a predicted roll out in the next two years. The plans included providing free wireless Internet to all for 20 hours a month, with charges made only for more time or higher speeds. But those plans have been squashed by high costs and volatile technical issues.

 

"It's a setback," said John Sondag, vice president of external affairs for AT&T Missouri in a statement. "We're disappointed. But we will still learn something."

 

Though the company had planned to spend about $400,000 a year to buy access to a special public-service network, AT&T experts could not arrive at a cost-effective way to power the network of transmitters.

 

"It can be done, but we don't have $28 million lying around to do it," said Michael Wise, the city's director of information technology services. "And if we did, we'd be spending it on something else."

 

But, AT&T is not completely giving up. It is planning for a small project in downtown San Antonio.

 

 

 

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