Ustwo, no there isn't any such thing as a free lunch...
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Originally Posted by TorontoHydro's FAQ page
6. What are your rates for this service?
For the first six months, the service will be available free of charge to anyone in the ‘blanketed’ zone. After that time, four packages will be available, and rates will be competitive with Bell, Rogers and Telus.
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What gave you the idea that the service would be free?
Some of the things that may come from a city-wide wi-fi blanket:
1) city-wide "free" ip cell phone usage
2) the ability for parking meters and other city objects to report to a central server (i.e. cost savings)
3) taxi cabs with site specific advertising on board
4) tourist information via rentable tablets (get coupons, information, guided tours and directions)
Plus tons of things that people haven't even begun to imagine yet.
The key to this being cheaper than say, Rogers or Bell, who offer cellular services, is that Toronto Hydro owns all the utility poles. Rogers and Bell must rent space for their cellular arays. Toronto Hydro is already a major player in the telcom business. They run trunk lines through most neighbourhoods already.
No free lunch. Just a city-wide buffet.