Springs attracts bids for citywide wireless access

Three companies are interested in building a citywide wireless broadband network, according to paperwork they have submitted to the city of Colorado Springs.

Boulder-based Affinity Telecom Inc., Chicago area-based Federal Signal Corp. and Fort Collins-based Front Range Internet Inc. each proposed building such networks after the city asked companies to formally indicate interest.

Their responses were due Tuesday.

The three companies are the latest to show interest. In the past year, five other companies have approached the city about building wireless networks in the Springs.

But none of those five — Azulstar Inc., EarthLink Inc., SpyPilot Networks Inc., Tropos Networks Inc. and Wav-Max LLC — submitted a proposal to the city.

Several of those companies have found that such networks haven’t lived up to optimistic sales forecasts.

So the companies have either stopped or curtailed new bids.

The bids came a week before SkyTel Corp. will shut down two pilot networks Tuesday in downtown Colorado Springs and near Chapel Hills Mall.

The networks had operated for 1½ years, but the company said they didn’t attract enough customers to be profitable.

Some potential bidders may not have responded because the city was asking companies only to formally declare interest rather than submit bids and award a contract, said André Sodbinow, who manages the city’s Information Technology office.

“I’m not sure that the city is ready” to seek bids, Sodbinow said. “Companies are looking for a commitment from the city as an anchor tenant, and I just don’t think the city can commit to that at this point” amid budget shortfalls projected for 2008.

More than 20 potential bidders, including Azulstar, Earth-Link, Tropos and WavMax, downloaded information packages from the city’s contracting Web site.

Proposals from the three companies will be reviewed early next week by a committee, including representatives from city agencies and civic groups.

The committee will recommend by early August whether the city should negotiate agreements with any providers, Sodbinow said.

Both Affinity Telecom and Front Range Internet proposed citywide wireless networks that would sell service to consumers, businesses and government agencies.

Bill Ward, Front Range chief executive, estimated such a network could cost up to $25 million to build.

Front Range launched a pilot network Wednesday in downtown Fort Collins that is available free to anyone for 30 minutes, and after that sells for $29.95 a month for download speeds of up to 8 megabits per second.

The service also is sold at hourly and daily rates.

The company provides free access to the city of Fort Collins in exchange for waiving fees the city charges to attach transmitters to street lights. Front Range provides broadband and commercial fiberoptic services to 8,000 customers statewide.

Affinity Telecom is best known for providing discount telephone and long-distance services to 5,000 Front Range consumers and local governments.

The company would sell its wireless broadband service for $14.95 a month for download and upload speeds of 1.5 megabits per second.

Fred Chernow, Affinity Telecom’s chief executive, said Wednesday that the company and its partner, Toronto-based Bel-Air Networks Inc., expect to sign a contract within days to build a network for a Denverarea city, which he declined to identify.

Federal Signal on Monday won a contract to build a citywide wireless network that would begin operating by year’s end in the Indianapolis suburb of Beech Grove, Ind. The company was one of five bidders this month to build a wireless network in Albuquerque.

John Segvich, a Federal Signal spokesman, said he was aware of the bid but did not know any details about what the company had proposed.

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