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MYSTERY SHOPPERS

A city consultant recommends that Tucson solicit proposals to build a citywide WiFi network to provide residents with a lower-cost high-speed Internet option.

A study by Maryland-based Columbia Telecommunications Corp. suggests a private company, working in tandem with the city, could provide high-speed Internet service for $20 to $25 a month — a significant savings from the average $39 Tucsonans now pay for high-speed cable or DSL access.

But attracting a company willing to offer service at that rate will require the city to provide up to $314,000 startup assistance and up to $574,000 a year in ongoing operating subsidies, according to the study released to the City Council last week.

The consultant said the cost can be justified because Tucson is one of the most heavily "wired" cities in the country, and at $20-$25 a month, as many as half of current Internet customers would switch to the city-backed service.

The study says 90 percent of Tucsonans have a computer in their home, 87 percent of them have Internet access, and 70 percent already have more expensive high-speed connections. Nearly 2 percent of those without Internet access say they plan to get it in the next year, according to the consultant's survey of 401 households.

By comparison, the consultant said that in 2003, about 62 percent of households were connected to the Internet, according to a report on national Internet demand by two economists at the University of Colorado. However, the number who used high-speed Internet was much lower, that report said.

The consultant noted there is still an economic divide between computer and Internet haves and have-nots.

Among households with an income of $15,000 or less, 70 percent have a computer and 52 percent have high-speed Internet access. That contrasts with statistics showing nearly 100 percent of Tucson households with an income over $100,000 have a computer and Internet — at least 90 percent high-speed Internet, as opposed to slower dial-up service.

The variance in Internet access by income level is the crux of the issue for the city, said Ann Strine, the city's information technology director.

If the council decides to put in citywide wireless Internet, likely those at the lowest income levels would benefit most because their monthly cost could be lowered, she said.

As the council considers whether to go ahead with a municipal wireless Internet system, it could choose to at least start out with a smaller area, such as Downtown and surrounding neighborhoods, said Councilman Jose Ibarra.

Strine, Ibarra and Councilwoman Nina Trasoff said they were surprised at how connected Tucson is. Ibarra, Trasoff and Councilman Steve Leal are on the council subcommittee looking into wireless Internet.

Strine and Trasoff said they were pleased at the high percentage of connectivity. Trasoff and Ibarra said they want to focus on those who do not have computers or are not connected to the Internet as the council weighs what to do.

The council must also consider whether it's financially reasonable to put in a citywide wireless system, Strine said.

It could cost the private operator between $15 million and $29 million to put in a citywide wireless Internet system, the report states.

That doesn't include the equipment and connection fees each business and resident would have to pay.

The most important reason people would switch to a municipal wireless system is lower cost, according to the report. At least 70 percent of those surveyed said their Internet connection is fast enough for their online needs.

While 35 percent of households and 40 percent of businesses would switch if service were cheaper than what they now pay their phone or cable companies, more than 55 percent said they would switch if the price hit the target $20-a-month or less.

Less than 10 percent said they would switch to a city-endorsed fast Internet if it cost them more than $41 a month.

The council plans to discuss the survey at Tuesday's study session, and make a decision whether to solicit financial proposals.