The sun came out for EarthLinks' Philadelphia Wi-Fi network on Thursday even as prospects for its San Francisco project remain shrouded in fog.

Wireless Philadelphia, a nonprofit group formed by the city of Philadelphia, has approved the 15-square-mile Wi-Fi test network EarthLink Inc. built, opening the door for the operator to finish building out a 135-square-mile network covering the city.

The approval comes just a month after EarthLink announced it would scale back its city Wi-Fi initiative, focusing on existing and large cities for the rest of the year. The company has seven or eight cities under contract now and is negotiating with five more, Vice President of Product Strategy and Marketing Cole Reinwand said last week. It decided to stagger its Wi-Fi expansion to conserve resources, he said.

Residents can already use the 15-square-mile network in Philadelphia. The full network is expected to be complete in the third quarter. EarthLink is financing, building and managing the network and will share revenue with Wireless Philadelphia, which will offer cut-rate access for low-income people.

For six months, customers of a 1M bps (bits per second service) will pay an introductory rate of US$6.95 per month, which bumps up to $19.95 thereafter. A faster 3M bps service is available for $9.95 for the first six months and $21.95 after that.

City parks will have free access, and low-income residents can sign up for service at $9.95 per month, before promotions. Customers can also pay for service on an hourly, daily or three-day basis.

The Philadelphia Wi-Fi network is notable because when announced, it set off a storm of controversy that resulted in a Pennsylvania law requiring municipalities to receive approval from incumbent telecommunications operators before building Wi-Fi networks. The law was created after incumbents complained that by financing Wi-Fi networks, cities were building networks that would compete with their businesses.

The San Francisco project, which has drawn attention partly because of Google Inc.'s planned involvement as provider of a free citywide service, has run into fierce opposition from activists as well as some local elected officials. The proposed contract is scheduled for a vote by the city and county's board of supervisors in July.

The IDG News Service is a Network World affiliate.