AT&T now says that any "FastConnect" subscription, even its DSL Lite offering of 768 Kbps down/128 Kbps up, qualifies for Wi-Fi Basic. The new statement reads: "AT&T Wi-Fi Basic service is FREE and already included if you subscribe to AT&T High Speed Internet, AT&T U-verseSM High Speed Internet, or AT&T FastAccess® DSL—all speed plans included.

There's still a $10 per month fee to upgrade to Wi-Fi Premier, which includes over 70,000 locations worldwide, along with the missing U.S. hotspots, but their Web site says that you have to have a 1.5 Mbps or faster connection to get the $10 per month upgrade. That may be out of date. That ordering page also says you need 1.5 Mbps or faster for free Wi-Fi, so that tends to confirm it hasn't been fixed. (It's even hosted at sbc.com, so perhaps that's part of the vestige of an older system, harder to update.)

Please note that iPhone subscribers still don't get free Wi-Fi on AT&T's Basic network.

The Zune doesn't include a Web browser or any Internet focused features; it's not an iPod touch. But you can use Wi-Fi to browse the Zune Marketplace for music and games, and download new songs in programmed channels, music selections created by a variety of artists and stations. Zune offers both music purchases and a subscription for unlimited music listening. The new models range from $149 for an 8 GB flash model to $249 for a 120 GB hard drive-based player.

The feature I'm most interested in is Buy from FM, which leverages the built-in FM tuner and very low-bandwidth data that's already pushed over analog AM/FM. (See my write-up of this feature from last week.) With Buy from FM, when you're listening to radio stations that participate, you'll be able to click a button and buy the song you're listening to if you're connected to a Wi-Fi network. Zune Pass subscribers can download the song at no additional charge. If there's no Wi-Fi network, the song download or purchase is queued.

Wayport's marketing head Dan Lowden said, "Obviously, it's cool because folks who already own a Zune device and just need to do an upgrade will be able to use this just as with any of the new Zune devices that they start selling as soon as possible." (Microsoft may have a little accounting work to do: Sarbanes-Oxley doesn't let you enhance a product in the market without a fee if you realize the revenue all at once.)

The benefit for Wayport is to have yet another hefty but undisclosed fixed sum underlying its fixed infrastructure costs. In the past, Wayport has done deals with Nintendo, ZipIt, and Eye-Fi to allow all devices in a category unlimited access at McDonald's locations. McDonald's obviously gets more customers, or existing customers who spend more time or visit more frequently.

A partnership with a hotspot operator means that Microsoft doesn't have to provide tools and their users endure frustration in joining a network. "We're experts enabling one click to get this network connected," Lowden said. He noted that Wayport has opened test labs to work with manufacturers in Japan, San Francisco, San Diego, and Seattle. "We're working with these guys from day 1 to make sure it's one click to get connected," he said. I'd also note that San Diego happens to be where Qualcomm's headquarters are located, not that Lowden gave me any tip-off there.

And I have to just say: burn, burn, burn on Apple. Despite Apple partnership with AT&T, which relies on Wayport to operate the AT&T-branded hotspot network and resells access to Wayport's own network, iPhone and iPod touch users have no inclusive Wi-Fi service. AT&T slipped a few times and ostensibly opened up their network or released details that iPhone users would gain free hotspot access--like all AT&T's fiber and all its standard and premium DSL customers.

As Wi-Fi becomes an expected part of any handheld gadget, the venues in which Wi-Fi is used multiply beyond cafes and hotels. Lifestyle locations--which could be clothing stores, nightclubs, ski resorts, and the tops of mountains suddenly become places where people want the same kind of access they have at home. Ultima thule is already unwired.

Portfolio critiques crazy hotel Wi-Fi pricing: The travel guru that is Joe Brancatelli turns a steely eye to $15 per night charges at fancy hotels for Internet access, noting that cheaper hotels include such service at no cost. The higher-end hotels won't talk for attribution, but they say that a "fraction" of guests use Internet, so why bundle it into the room rate? Pshaw. At $15 per night, four to six users pay the entire cost, while the hotel or its operator accepts a fraction of that rate as settlement from Boingo and iPass and other aggregators. So it's nonsense. They charge because business travelers will expense it and be reimbursed.

What's been clear is that after spending more than $3m, the city couldn't acquire more than a few hundred regular subscribers, about 10 percent of the point they'd need to pay expenses and pay down capital outlay. But it turns out that the backend was as important as their network deployment, IDG News Service reports.

The latest city network administrator brought in Aptilo Networks for backend authentication and session processing, opened the network to 15-minute free trials, and started accepted ad hoc payment. The new network guru also let outsourced contracts expire and brought customer support and other services back in house to reduce expenses and improve the feedback loop. He discovered their existing authentication system was licensed for 500 users, so that might have explained their failure to grow, too.

The city now has 1,000 regular users at all levels, from pay-as-you-go to monthly household subscriptions. They've revised breakeven down to 2,000 subscribers, and say they are breakeven for expenses.

The other problem Lompoc had, by the way, is that the cable and telephone companies didn't sit still. I exaggerate, but when Lomopoc was planning its network, it had very poor coverage for its 42,000 residents for DSL and cable modem service. When the Wi-Fi network was announced, the incumbents started pulling copper, coax, and fiber, and dramatically improved network coverage. The $3m wasn't entirely ill spent so far: it was a kind of reverse incentive to the private companies to get their act together.

TAP Portugal adds in-flight calling: OnAir's satellite-based call service is now in a trial on a single Airbus A319 in TAP's fleet. The six-month trial will determine how they move forward. TAP was originally slated to launch a trial nearly three years ago, but technical and regulatory issues have delayed in-flight mobile use in Europe. This isn't broadband, by the way: it's pricey per-minute calls, texts, and cell-based email.

Boingo offers free day pass for downloading connection software: The hotspot aggregator will give you 24 hours of use at a location in their network for downloading their lightweight connection software by 6-July-2008. The software identifies Boingo-partnered networks, and lets you sign in without any fuss.

AT&T launches downtown St. Louis network: The company found that it couldn't complete its city-wide proposal due to light pole issues. They've built out a square mile in the downtown, instead. The service is $8 per day and $16 per week, or free for up to 20 hours per month when ads are viewed. AT&T DSL, fiber, and remote business customers get free use of the network.

Oakland County, Mich., project officially "on hold": For "on hold," read, "never going to be built." The pilot area in seven communities has been turned off, and MichTel has been unable to obtain the $70-odd million they project needed to build out the county-wide service. The state's ongoing reliance on the automotive industry makes it a hard sell to commit public dollars in advance of a return on those dollars, too.

Virgin Mobile buys Helio: The last vestiges of EarthLink's three-pronged approach to fighting the wireline monopoly appears to be at an end. EarthLink pushed its 50-50 partnership with SK Telecom in mobile virtual network operator (MVNO) Helio as one prong; its municipal Wi-Fi division as another; and its DSL business as a third. The muni division is nearly out of operation, and DSL lines continue to fall in quantity quarter over quarter. Dial-up is still their cash cow. Helio lost hundreds of millions to obtain just 170,000 subscribers (that number down from 200,000 at the start of 2008). EarthLink will receive a pittance for its investment, part of the $39 million in stock that Virgin will pay for Helio; SK Telecom will invest in Virgin Mobile to obtain a total 17 percent state. Virgin itself makes just a very tiny sliver of profit. MVNOs buy minutes and data from carriers, and Virgin Mobile involves Sprint as a partner, making it the only tolerably successful MVNO.

Nashua, N.H.'s downtown network may never launch: The local paper says, c'mon, already. The network was to span a 1.2-mi stretch of the main street and use donations. Deadlines have come and gone for a year.

Covad may launch San Carlos, Calif., test network: The company know for wired installations as the last-man-standing among competitive DSL and other digital line providers nationwide, is looking for city access to build a square mile test area. This is the latest wrinkle in trying to get Wireless Silicon Valley underway after the consortium was unable to raise funds, and lead-partner Azulstar stepped back or was replaced.

Lexington, Kent., may relaunch shuttered network: The city bought SkyTel's network assets for $10 over a year ago--10 dollars, not 10 plus any zeroes--and the city may partner with the University of Kentucky to build a public-safety network. The university would manage the network. It's unclear from the article if any public access would be included.

Riverside network should launch soon: I recall a ribbon (or cable) cutting ceremony for AT&T's MetroFi-built Riverside, Calif., network some time ago, but the full launch beyond a trial network in 2007 appears ready to go by the end of May. The network was originally billed as planning to cover the 80+ sq mi of the city; this article says just 55 will be covered. And AT&T's local project manager told the audience at a training session, that the service is "mainly meant for outdoor use." Huh. Service is free with ads at a rate that's not easily found (512 Kbps?); a premium ad-free service at 1 Mbps is free to AT&T's 1.5 Mbps or faster DSL subscribers and fiber users, as well as by paying a monthly rate that isn't yet disclosed. The 24-hour rate is a crazily high $7.99.

The company plans to pull all its gear from the poles starting 12-June-2008. The company's press release said it offered to give the network at no cost to an unnamed non-profit, as well as to the city, but claimed that "unresolved issues" led to the effort falling apart. EarthLink offered cash and more equipment, as well, in undisclosed quantities. Wireless Philadelphia, the non-profit in charge of managing the network provider and administering digital divide programs, was apparently not the non-profit mentioned.

EarthLink filed a lawsuit to allow it to remove its Wi-Fi nodes and cap its liability at $1m. That's a pretty hostile move, given that the city would have been the more likely party to feel aggrieved and file suit against EarthLink for failing to live up to the terms of their agreement.

EarthLink's claims of offering the network to "a non-profit" or the city for free skirts the issue that EarthLink may have certain liabilities for electrical power and other fees that haven't yet been paid; Wireless Philadelphia had agreed to pick up or defer certain charges as part of the deal that brought the network provider in. But without a completed network, and the contract therefore perhaps susceptible to being declared in default in court, it's unlikely that this will play out nicely.

And I'll say bluntly: If someone offered you $17m of outdated equipment on a network that never worked to specification that wasn't completed, and that already had known high annual costs, and which a private firm gave up as a bad job that they couldn't turn a dime on--would you take that deal? No. EarthLink will ultimately have to pay much more than $1m, I predict, and I suspect some of the settlement will leave gear in selected neighborhoods behind for more modest networking purposes. It's not going to be as easy as releasing a press release, although I haven't read the contract's provisions for this set of circumstances, and I'm not a lawyer.

The failure in Philadelphia, and EarthLink's exiting the entire muni-Fi business, represents the end of a bad model in which a company agreed to assume all risk and costs associated with building a public access network. When the assumptions were that networks would be cheaper and easier to build in 2005, and that citizens in many larger cities had few affordable broadband options, it made some sense to build a network on spec.

Three years into this, however, it's clear that that capital investment is 2 to 3 times higher than what was anticipated to reach a level of service quality that people will expect; that, when presented with potential competition, DSL and cable operators will slash prices and offer cheap 1-year or "lifetime" rates with long-term contracts; and that wireless broadband delivered via Wi-Fi isn't the best of ideas for indoor service.

Minneapolis may wind up being the only large city, if the network quality and subscriber rates play out, that has a public access network that works and produces a return.

AT&T appeared to have flipped a switch several days ago on its "attwifi" SSID that has appeared alongside T-Mobile's during this several-month transition at Starbucks from one operator to another. iPhone users were presented with a custom login screen that prompted them for their phone number to obtain free access. That gateway page disappeared a few days. I haven't tested if it's back, but at least AT&T has, at long last, made the connection that its iPhone customers might enjoy the same free access to hotspots as its 7m fiber and qualifying DSL customers.