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Tempe looks to cut ties with Wi-Fi firm

Garin Groff, Tribune

April 12, 2008 - 5:23AM

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Tempe is moving to sever ties with the company that owns a citywide wireless Internet service after the technology firm basically abandoned the network.

The city has the power to take ownership of the Wi-Fi network because Gobility stopped providing customer service and hasn't communicated with Tempe officials. But the city has declined that and instead will look to cancel a contract that lets Gobility operate. The City Council is expected to agree to a cancellation on Thursday.

The service will continue to work - to the extent it does today - should the city sever ties with Gobility. The city is supplying power to transmitters on city infrastructure and has no immediate plans to shut them off, City Attorney Andrew Ching said.

"This action will have no direct effect on whatever limited service may or may not be out there," Ching said. The system had about 500 subscribers last year but since December has been free to anybody who can pick up a signal. The city has no way of knowing how many people still use it or where transmitters still work.

Tempe's expected action is one step toward allowing another company to take over the service by getting a license from the city. However, a new operator would have to buy the assets from Gobility and any number of creditors it has.

Gobility had been trying to sell to a California firm, but nothing came of it. Gobility is still trying to sell, Ching said.

Ching said he couldn't reveal why the city didn't try to take ownership of the network. That's a legal matter for the City Council to decide, he said, adding that he couldn't elaborate because of attorney-client privilege.

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