U.S. Senator John Ensign (Republican, Nevada) and Representative Pete Sessions (Republican, Texas) are up against municipal WiFi networks, so it seems. And the paper trail leads to a major telecommunications firm.

Sen. Ensign was recently quoted to have said he drafts legislation with the private sector in mind, and free municipal WiFi networks are seen to be going against business sense by alienating the private sector. And in mid-2005, Rep. Sessions filed a bill entitled “Preserving Innovation in Telecoms Act of 2005” where state and local governments are to be expressly prohibited from offering any type of telecommunications service.

What’s interesting to note is that journalists have dug into the paper trail involving the Congressmen’s stand, and it was discovered that AT&T (formerly SBC Communications) was among the top campaign contributors to Messrs. Ensign and Sessions. So the “pro-private sector” stance may not necessarily be out of good business sense, but was brought about by the lobbying power of AT&T, being a major contributor.

The private sector should not worry about unfair competition if local governments were to provide free WiFi—this is because most local government units are most likely to bid out the contracts to the private sector. Business-wise, it makes sense for telecom companies to look into alternative business models in offering free WiFi, such as selling advertising space or premium access, for instance.