In recent days, MetroFi officials insisted that the city commit to paying a monthly fee for city use of the network before MetroFi would build it. Twice in the past week Mayor Begich has talked to MetroFi CEO Chuck Haas to try to save the contract, but the two were unable to reach acceptable terms.
"We remain enthusiastic about wireless technology and are disappointed about our inability to reach agreement with MetroFi," said Begich. "Many cities have had similar experiences setting up wireless networks, so we'll go back to the drawing board to come up with a plan that works for Anchorage."
In June, Begich announced the city planned to sign a deal with MetroFi, Inc., to install free wireless Internet in downtown Anchorage in exchange for free use of city facilities, such as light poles and buildings to hang the hardware.
The Anchorage Assembly approved a tentative lease agreement on June 26 after listening to assurances from a MetroFi official that there would be no risks and no costs to the city for the build-out of downtown. After the Assembly vote, the city was negotiating final terms before signing the contract.
The selection of MetroFi was conducted through a competitive Request for Proposal process. Six firms submitted proposals. MetroFi was selected based on its experience, successful deployment of wireless technology in other cities and for what it offered Anchorage. The city had planned for an eventual build-out of the entire Anchorage area in hopes of saving the city substantial telecommunications costs and providing leading edge technology through this network.
The city is considering plans to reissue a Request for Proposals to provide wireless services in Anchorage after evaluating the conditions that led to the inability to reach final terms with MetroFi. The city will evaluate services it could deliver more economically through wireless technology.
