Tempe, Chandler Wi-Fi future in doubt

The future of citywide wireless networks in Tempe and Chandler became murky Tuesday when a company looking to buy the unsuccessful systems said it may back out of the deal.

California-based Telscape was days away from buying the networks but said the transaction grew far more complicated and undesirable after the current operator pulled the plug on the system over the weekend.

That shutdown created havoc on the system and has had Telscape technicians scrambling to fix problems instead of making needed improvements, Telscape chairman Tad Neeley said.

The system demands far more work after being shut down — which makes the transaction far more costly and complex.

“Networks, they’re fragile things, and somebody threw a big wrench into it,” Neeley said.

Telscape is now running the network even though it hasn’t taken ownership of it from Kite Networks. Neeley said he expects to make a decision within days if he’ll buy the two networks or give up after six months of working on a sale.

The good news for subscribers — 400-500 in Tempe and even fewer in Chandler — is that the service is free for now. Anybody with wireless access should be able to tap into the signal, Neeley said, though he added some computers may not be able to recognize the signal.

The service is being offered free until Telscape can integrate customer service and technical operations with an existing center in California that already serves 130,000 customers, Neeley said.

Because the system had been shut down, that task is now far more difficult, Neeley said.

What could have been a smooth transition will now be rough — which could kill the deal.

“We would almost rather see the thing go completely dark and start all over again than be in this period where we’re trying to put Band-Aids on and then never really fix the issue,” Neeley said.

Tempe launched the Wi-Fi service three years ago with high expectations but few people subscribed because of customer service woes and technical problems. The technology is good and the service should be successful with a different owner, said Dave Heck, Tempe’s information technology director.

Kite Networks had service in less than 25 percent of Chandler, spokeswoman Margaret Coulter said.

It was supposed to install equipment in all of the city but stopped because of financial woes, she said.

A new owner could make the network more attractive to customers, she said.

“Both Tempe and Chandler are going to be happy with the end result,” Coulter said.