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Portland is hanging its head this week as wireless internet provider MetroFi announced that it will shut down its free wi-fi service by the end of the month. Portland isn't the only city affected by the shutdown, there are several others in California and Illinois.
This comes on the heels of Earthlink abandoning Philadelphia's free wi-fi network for lack of customers. That network was saved by local private investors who stepped in but also instituted a subscription (meaning not free) service to some of the heavier customers like businesses.
The list of cities with a failed municipal wi-fi system reads like an obituary. Time and again these examples demonstrate why it's risky for municipal governments to buy into agreements that provide a "free" service, in this case wi-fi, to consumers who often have to be bribed to use it. Too often, the consumers who really care about quality service are willing to pay for a better version than what can be provided for free. In fact, maybe Portland's wireless users aren't all that sad to see the service go.
It appears, at least in Portland's case, that besides the $250,000 the city spent researching the service a few years back, the majority of the financial hit will only impact the company and its owners and not taxpayers. This is why city leaders should think twice about getting into providing wi-fi, which is an outdated technology -- particularly for free.