Scottsdale's highly-touted plan to bring wireless Internet service to every square inch of its downtown area has ended just two years after its launch.

GRAPHIC: See how the Wi-Fi network works

Tempe's vaunted Wi-Fi system in shambles

Wildfire Broadband - a company that offered a paid subscription service for downtown users and at one time was committed to SkySong, the Scottsdale-Arizona State University technology campus - has gone out of business.

Click on the graphic to view how the Wi-Fi network works

The demise is playing out across the East Valley, where private companies that receive permission from cities to place Wi-Fi equipment on traffic signal and streetlight poles are halting plans. Plans to blanket Tempe and Chandler have not panned out. Gilbert also has backed away.

Scottsdale did not subsidize the nonexclusive arrangement with Wildfire, but rather allowed the company to use its poles for a nominal annual fee and then promoted the service that allowed users to connect to the Internet from anywhere.

But the paid service meant to capitalize on flashy new downtown projects and an influx of new residents had to compete with free Wi-Fi service that has become increasingly commonplace at coffee shops, restaurants and hotels.

One such venue offering the service for patrons was The Orange Table, off the Scottsdale Civic Center Mall. Owner Susan Speidel said she started the popular service three years ago, before Wildfire's downtown service became available.

"People use it all the time," Speidel said. "It makes sense to have it."

Scottsdale spokesman Pat Dodds said the city has not heard from Wildfire that it has discontinued operation, but computer specialists at the city have confirmed the connections are no longer available.

The Wildfire Broadband Web page states: "We want to express our thanks for your business, friendship and loyalty over the past several years. Due to changes in both the wireless and real estate markets, we regret to have to stop conducting business effective immediately." The message was not dated.

The company's telephone recording says: "Due to circumstances beyond our control, Wildfire has closed its doors and is out of business. Thank you."

Messages left at the business phone number and home number of Wildfire president and CEO Randy Carrero were not returned.

In April 2006, Scottsdale held a ceremony at Fifth Avenue and Stetson Drive to celebrate activation of the first phase of a wireless network between 68th Street east to Miller Road, and Chaparral Road south to Osborn Road.

Mayor Mary Manross used a large pair of wire cutters to cut a cable connected to a laptop computer to symbolize the start of the Wi-Fi network. At that time, user fees ranged from $3.75 an hour to about $40 per month. Dodds said he did not have any subscription figures because they were held by Wildfire.

"I just heard about this and haven't had a chance to think about what the next step might be," Manross said. "I wish they had been able to maintain that service in the downtown."

Scottsdale decided to embark on a downtown Wi-Fi network after a 2003 Scottsdale Area Chamber of Commerce report that talked about the importance of integrating Wi-Fi in the downtown area with hopes of luring new business. But the problem has been making it viable.

"No one has been able to make it work financially," said chamber president Rick Kidder.

In December 2005, the City Council unanimously approved its agreement for Wildfire to install Wi-Fi antennas on city traffic signal and street light poles. Scottsdale charged Wildfire $75 a year for each pole. The company used 21 poles in the downtown area, Dodds said.

Wildfire was required to provide free access to the city Web site and to other organizations that promoted the city.

According to the 2005 city report on the agreement, "it was clear that wireless internet access was an important part of reshaping the image of the downtown area as one that is more aligned with the technological needs of those who live, work and visit downtown."

Free city-provided Wi-Fi access is still available at the Scottsdale public libraries and the One Civic Center building at 7447 E. Indian School Road.

Wildfire Broadband had a letter of intent to rent 3,000 square feet at SkySong on the southeast corner of Scottsdale and McDowell roads, becoming one of the first companies to commit to the planned high-tech center.

SkySong spokeswoman Michele Irwin said an official lease was never signed and Wildfire never gave a reason as to why it was not pursuing a lease, just that it wasn't what them firm needed at the time.

"My understanding is when they first made the commitment, they were looking for space with an eye toward expansion," Irwin said. "Obviously there was a good connection and good fit there."