"When I first announced the plan to bring wireless Internet to every neighborhood, I said we would do so because we must prepare our citizens and businesses to face the challenges of the 21 st Century," Mayor Street said. "Just as roads and transportation were keys to our past, wireless technology and digital infrastructure are keys to our future. With these agreements signed today, our original vision will be realized and every Philadelphian will benefit. This is a tremendous step forward for our city and our citizens."
"EarthLink is excited to work with the city and Wireless Philadelphia to begin building the largest municipal wireless broadband network in the United States," said Donald Berryman, executive vice president of EarthLink and president of its' municipal networks unit. "This partnership is an important step in shrinking the digital divide and bringing low-cost, high-speed Internet service to the visitors, businesses and residents of Philadelphia."
Under the agreements, EarthLink will build, manage and maintain a wireless network over the city's 135 square miles at no cost to taxpayers. EarthLink will install transmittal devices on approximately 4,000 of the City's street lamp pole arms for which it will pay the city. In addition, EarthLink will provide city residents and visitors with free hotspots in 22 locations around Philadelphia, and provide the city with 3,000 free or discounted WiFi accounts and 700 discounted T-1 accounts to be used at the city's option.
"I'm proud of all the hard work Wireless Philadelphia and our administration did to achieve these agreements, which will provide a true benefit to our citizens - at no cost to them," Mayor Street said. "This is an opportunity we have seized as we continue building on all the momentum growing in Philadelphia over the last few years. Creating a citywide wireless network is yet another accomplishment distinguishing our vibrant city as we compete in the national and international marketplace."
Wireless Philadelphia, a non-profit entity incorporated by Mayor Street last March, will use the revenues it receives from EarthLink (5 percent of access revenue) and other monies raised to invest in educational and social programs to help Philadelphia citizens. $2 million of the amount EarthLink pays to the city also will be used for programs to help bridge the digital divide. Initial plans include purchasing 10,000 discounted computers for children and low-income residents to use and for associated training programs. Wireless Philadelphia will also be responsible for building awareness of the program among audiences across the city.
The costs of the service will be geared to users' different needs. Economically disadvantaged users will be charged $9.95 a month while other Internet Service Providers (ISPs) will be charged a wholesale rate that allows them to sell access for $20 a month or less to retail customers.
To implement this transaction, City Council needs to approve two ordinances, a street-light use agreement between the City and PAID and a management agreement between the City and Wireless Philadelphia. Both ordinances will be transmitted shortly to Council.
"We will work closely with City Council as they consider these ordinances necessary to make this exciting program a reality," Mayor Street said. "Building a wireless network is another major step forward for our world-class city. It's tremendous news for Philadelphia
