thatshortkid writes "The Chicago Tribune is reporting that a proposed plan for municipal wi-fi in Chicago has fallen apart. The story cites contract disputes and the falling price of residential broadband as reasons for the talks collapsing. 'Chicago officials had intended that the city would offer infrastructure, but no cash, to a carrier that would use its own funds to build the network here. EarthLink and AT&T Inc. submitted proposals to the city, but after months of negotiations the parties were unable to reach agreement. The companies sought a commitment from Chicago to be an "anchor tenant," agreeing to pay to use the Wi-Fi network to support city services, but the city declined ... Even if Chicago declines to back a municipal wireless network, city residents soon will gain more Internet connection options. Sprint Nextel Corp. is building a wireless WiMax network here that is due to offer service next spring.'"