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A coalition that includes IBM Corp. and Cisco Systems Inc. has won the right to bring wireless Internet service to much of Silicon Valley.

The coalition, that includes wireless Internet firms Azulstar and SeaKay, will be known as MetroConnect. It has agreed to make wireless Internet service available over 1,000 square miles of Silicon Valley. Some areas include Skyline Boulevard and some rural areas south of San Jose will not be immediately included in the project.

Several layers of service will be made available through the program, including a basic free service as well as several paid options starting at $20 a month.

"Our goal is to service the outside areas of Silicon Valley," says Seth Fearey, vice president & chief operations officer for Joint Venture Silicon Valley Network, which developed the concept of a Silicon Valley-wide Wi-Fi hotspot. Most cities, including city police forces, are expected to use the paid services.

As per the contract, MetroConnect will cover all costs associated with buildout of the gigantic hot zone. The participating municipalities will not be asked to cover any construction costs, Fearey says.

Residents and businesses are expected to be able to receive the Wi-Fi signal with a basic booster antenna available at many retail stores. The speed is expected to be faster than dial-up but probably not as fast as DSL, Fearey says.

Joint Venture Silicon Valley Network and MetroConnect will spend the next several weeks hammering out a definitive model that will then be presented to participating cities, which includes virtually every municipality in Santa Clara and San Mateo counties as well as portions of Alameda and Santa Cruz counties. All cities involved in the program must give their approval to the deal before build out can begin.

Initial construction of antenna towers could begin as early as January with service beginning 12-18 months after that, Fearey says.

As part of an incentive program, the first cities to approve the deal will receive service first, Fearey says.

Copyright © 2006. Silicon Valley/San Jose Business Journal.