Council Grills City’s Information Chief Over Wi-Fi Plan

Sep. 15–For the first time since Mayor Street rolled out his high-profile effort to turn Philadelphia into a giant Internet hot spot more than a year ago, the city’s technology czar faced public City Council questions about the nuts and bolts of the initiative yesterday.

The city’s chief information officer, Dianah Neff, told Council that the effort was crucial to bridging the city’s digital divide – and assured skeptics that it would not leave taxpayers with the bill. Neff estimated that the effort would cost $15 million to $20 million.

“This program is vital,” Neff said, noting that the effort had earned worldwide notice since Street unveiled it in August 2004. “It is a very powerful initiative that will impact businesses big and small in the city of Philadelphia.”

Although representatives from nonprofit and social-services organizations lauded the effort, the session was marked by pointed questions about finances and logistics.

Michael Balhoff, a Maryland-based financial analyst who specializes in telecommunications, questioned whether the numbers added up. According to the initiative’s business plan, the program will eventually make a profit that will go toward such goals as providing computers for the needy.

Tom Christie, chief operating officer of the Bella Vista-based Closed Networks, said his firm already provided wireless Internet service to 50 square miles of Philadelphia for $20 a month, the rate Wireless Philadelphia hopes to charge.

“Why, we ask, should Philadelphia build a wireless network when one already exists?” he said.

Under Neff’s plan, Wireless Philadelphia, a city-sponsored nonprofit group, will contract with a private firm to build and maintain a citywide wireless network, then rent portions of the network to Internet service providers that could offer relatively low-cost service to residents. She has projected service costs of $20 a month, or $10 for low-income people.

Neff aimed at critics who she said had suggested that the initiative would be a waste of money in a market where some deals for DSL Internet access cost less than $15 a month.

“Look under the covers to find out what these deals are about,” she said, noting that many were introductory offers, introduced since the wireless scheme was rolled out, that require lengthy commitments or the purchase of other services.

Neff faces powerful skeptics. Several Council members said they had received critical briefings on the effort from officials at Comcast, which could face competition from the plan.

“Because of numerous financial and technological questions about the city’s plans, and the substantial risk to Philadelphia’s taxpayers, we have not endorsed the city’s efforts,” David L. Cohen, Comcast’s executive vice president, wrote in an e-mail message. “Investment in a competitive, challenging and risky business like broadband is something better left to private companies.”

Teams led by Hewlett-Packard and EarthLink are the finalists for the contract to build the network. A decision is due soon.

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