Market factors ultimately decide wireless success

The desire of Yumans to have a new wireless Internet service in the city appears to be pretty much dead, at least when it comes to a joint venture announced last year between the city and a private provider.

That proposal was announced by Kite Networks and the city of Yuma nearly a year ago, and work on installing the Wi-Fi Internet system on city utility poles and other access points was expected to begin within months.

In return for the access, Kite promised lower-priced Internet service to much of the community and free Internet service to city agencies for their work needs. A few wireless access points were also to be provided where the public could log on to the Internet free rather than paying for the service.

It seemed like a good deal for both the company and the city, but it didn't happen. It became clear as the months passed, and there were various changes at Kite, that the project was on shaky ground.

A city spokesperson told The Sun Tuesday that troubles within the company make it unlikely the Kite project will go forward.

The announcement comes in the wake of news that Kite has shut down its Tempe wireless network and sold it to another company. The Tempe network was the company's flagship operation in Arizona and was the basis for other systems the company planned, including the one in Yuma.

The company's business plan was seen as cutting edge and a less-expensive way to provide Internet service to communities. Because it was wireless, the infrastructure cost to get the signal to customers was expected to be more affordable.

But as with any technology in its infancy, there were problems. According to an Associated Press report, the Tempe Wi-Fi operation was more costly that expected due to the need for nearly three times as many access points. There were also complaints about service, according to Tempe officials.

In the end, Kite likely abandoned the Tempe effort because it had few customers - only a few hundred compared to the expected thousands. The marketplace spoke and Kite left.

The new company taking over the operation says it will do better and hopes to have 10,000 customers in Tempe. Perhaps it eventually will expand to other cities, even possibly Yuma.

The delay in the city of Yuma's system is probably fortunate. It enabled the city to avoid some of the problems that occurred in Tempe. It also demonstrated that technology alone is not enough. Success ultimately depends on a successful business operation, consumer demand and consumer satisfaction.