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Google Gains in Bid to Offer Free Wi-Fi Service

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From the Associated Press

Google Inc.’s bid to blanket San Francisco with a free wireless Internet service cleared a major hurdle Wednesday when a city panel identified the Internet search engine leader and EarthLink Inc. as the best candidates to complete the ambitious project.

The recommendation, completing a six-week review, clears the way for the city to begin final negotiations with Google and EarthLink, which decided to work together this year after initially bidding against each other. The companies will spend at least $15 million to build the network.

Users of the system will have a choice: free access through Google, whose service is expected to be financed through advertising, or a faster service provided by EarthLink for about $20 per month.

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Either way, the wireless, or Wi-Fi, service would be faster than Internet access over a dial-up modem. The Google component of the service would make San Francisco the largest city in the nation with free citywide Internet access.

Philadelphia, an even larger city, is further along in its attempt to provide citywide Internet access, but its service -- also being provided by EarthLink -- plans to charge fees. Other big cities trying to build Wi-Fi services include Chicago and Minneapolis.

Atlanta-based EarthLink technically will take the lead in the final contract negotiations with San Francisco, but Google’s involvement is attracting the most attention.

The project has spurred widespread speculation that Google is secretly planning to build a national Wi-Fi network to increase the number of people who have Internet access and thus can view the online ads that account for most of the company’s profit. Last year, Google earned $1.5 billion.

Google has said it is interested in providing free Wi-Fi only in San Francisco, where many of its employees live, and about 35 miles to the south in Mountain View, Calif., where the company is based.

Google spokeswoman Megan Quinn said the company was thrilled with Wednesday’s decision and was eager to launch the free Wi-Fi service.

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An EarthLink executive also was pleased.

“We look forward to getting started in building a solution that will bring the incredible possibilities to reality,” said Donald Berryman, who oversees EarthLink’s municipal Wi-Fi efforts.

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