Editor's Note: Rich MacKinnon is co-founder of the Austin Wireless City Project and founder of Less Networks.

The Austin Wireless City Project (AWCP) was born out of need.

Austin, Texas, was home to a robust band of wireless enthusiasts who believed in free wireless for everyone everywhere. But the group was unorganized and lacked critical elements. The free Wi-Fi movement was in danger of floundering before it had a chance to grow.

As the AWCP took form in late 2002 and early 2003, that began to change.

The AWCP, which included volunteers from a local wireless user group and a number of small technology companies, devised a "free Wi-Fi business model," where the venue pays for the Internet connection and an inexpensive access point, and the AWCP takes care of the volunteer labor necessary to install and maintain the community wireless hotspot network, donated equipment (in some cases), and the gateway software, which registers users, manages the venue's wireless offering and links the hotspots together.

All three ingredients, as well as a subtle sales approach, are necessary to making such a project work. It is important to review these ingredients in depth.


Volunteer Base
First, the project was helped by a groundswell of interest in wireless technology in the greater Austin area. In many ways, Austin is a leader in this area, with more than 80 emerging wireless companies, according to a pending economic development report from the University of Texas (UT) called Wireless Future.

Some of the better known companies are Wayport, which provides fee-based wireless networks at airports and hotels all over the country; and Buffalo Technology Inc., one of the world's largest vendors of Wi-Fi equipment. The Wi-Fi Alliance, the standards organization that coined the term "Wi-Fi," recently moved its headquarters to Austin from California's Silicon Valley.

It doesn't hurt that the UT campus in Austin, with more than 50,000 students, is one of the largest in the country. The university recently demonstrated its commitment to wireless technology by luring guru/researcher/entrepreneur Ted Rappaport to head its Wireless Networking and Communications Group. Rappaport's presence has added fuel to an already combustible level of interest in wireless technology in Austin.

Finally the Austin Wireless Group, one of the nation's most active wireless user groups, has been an invaluable resource and crucible for small Wi-Fi startups. Its discussion list and monthly meetings have been forums for wireless enthusiasts and professionals for nearly three years.

With a ready base of volunteers and experts, the key task for the AWCP was to build a free Wi-Fi community network in Austin by linking community-mindedness with the spirit of private enterprise.


Business Case
The free Wi-Fi business model succeeds when as many small businesses as possible profit. Unlike classic fee-based models where a large out-of-town telecom giant pockets all the gains, the community-based model keeps locally generated revenues in the communities that generated them.

For instance, to provide free Wi-Fi at Opal Divine's, a popular bar and restaurant, a number of local businesses needed to work together. Midas Networks did the cabling. A small consultancy was paid $50 to install a router. Another company was paid to make coasters that said "Free WiFi here." Opal Divine's ordered more food and beer from its local suppliers to feed the new Wi-Fi customers, who bought the food and beer, and paid new tips to the wait staff.

Local startup Less Networks provides the software and services that power the hotspot, and pays Midas Networks to host its facilities. The firm Hackney Communications provides public relations, getting them coverage in local papers and national trades.

Even the big boys make out in the community model. Kinko's made the vinyl sign