Philly, Verizon Complete Wireless Deal

[Mobile Mike]

HARRISBURG, Pa., Nov 30, 2004 (AP Online via COMTEX) -- The city of Philadelphia and Verizon Communications Inc. struck an agreement Tuesday that would allow the city to provide wireless Internet access as a municipal service, even if Gov. Ed Rendell signs legislation to give Verizon the power to scuttle the project.

Lawyers for the city and Verizon, the city's local telephone company, found common ground Tuesday in discussions with the governor's office, said spokeswomen for Verizon and Philadelphia Mayor John F. Street.

The parties "reached an understanding that protects our interests and allows us to move forward with the Wireless Philadelphia initiative," Street's spokeswoman Luz Cardenas said.

The agreement relieves pressure on Rendell, a former Philadelphia mayor whose political base is in the city, to veto the bill. Tuesday is the last day he has to do so, or the bill becomes law without his signature.

Rendell's spokeswoman, Kate Philips, said the governor had not made a decision by mid-evening.

Even with a deal between Philadelphia and Verizon, the legislation, if signed, would leave every other city and town subject to the provision, a prospect a Verizon spokeswoman said would be handled "on an individual basis."

Details weren't immediately available, but an agreement would guarantee that Verizon waives its right under the legislation to bar Philadelphia from providing the service for a fee, both sides said.

"We would waive our right of first refusal," Verizon spokeswoman Sharon Shaffer said.

The provision is tucked into a larger, 30-page bill to give telephone companies financial incentives to quicken the rollout of broadband networks - a carrot worth as much as $3 billion to Verizon.

Verizon's concession to Philadelphia was motivation by its desire to see the legislation signed, Shaffer said.

"It's a good bill for not only for the telecommunications industry and Verizon, but for the commonwealth in general," Shaffer said, noting that the bill includes provisions to spur business growth and broadband connections to schools.

Dianah Neff, the city's chief information officer who is overseeing the wireless project, said the governor's office had asked last week that Verizon and the city settle its differences over the bill.

Philadelphia's plans are the most ambitious of any major U.S. city to provide the high-speed wireless service.

Dozens of cities and towns have either begun or announced such plans, from San Francisco to St. Cloud, Fla., as regional and long-distance phone companies, who sell broadband Internet to consumers and businesses, have increasingly lobbied for laws to regulate or bar such municipal competition.

Under the Pennsylvania legislation, any "political subdivision," such as a city, after Jan. 1, 2006, would have to get the permission of the local telephone company to provide a telecommunications service for a fee, including broadband. If the company rejects the plan, it would have to offer a similar service within 14 months.

In the days before the Legislature approved the bill on Nov. 19, Philadelphia's wireless advocates discovered the provision and cried foul. In response, senators changed it to allow services operating before Jan. 1, 2006, to continue, giving Philadelphia some time to get going.

Still, the city was not comforted by the concession, and put pressure on Rendell to veto the bill.

Despite the victory for Philadelphia, a wireless equipment provider said the legislation is an ominous sign since the rest of the state is subject to the right of first refusal.

"This technology works today and this is going to slow its deployment and that's unfortunate," said Ron Sege, the president and CEO of Tropos Networks Inc. of Sunnyvale, Calif.

By MARC LEVY Associated Press Writer

http://money.excite.com/jsp/nw/nwdt_...&date=20041130

[agentHibby]

Great to hear about this
This is Verizon the telephone company not the Cellco Partnership D/B/A Verizon Wireless. But it is wireless though.

[Mobile Mike]

Originally Posted by agentHibby

Great to hear about this
This is Verizon the telephone company not the Cellco Partnership D/B/A Verizon Wireless. But it is wireless though.

Oops!! You're right. My bad.

[iGlenn]

Arghh, this has been all over the news here in Philly. I don't get it, the city is closing fire houses, laying off fire fighters, and police officers. But yet the city still finds $10 million to build a city wide WIFI network. If they don't have the funds to maintain the fire department how are they going to find $$ to maintain a WIFI network?!?!?

BTW, the deal is with VZ Landline.