The Azure announcement is the culmination of years of planning for Microsoft’s “software-plus-services approach to computing.” According to Debra Chrapaty, the woman who runs Microsoft’s data center infrastructure, plans started about four to five years ago to build out data center capacity for the new initiatives. The best place to build a new data center: Quincy, Washington – whose hydroelectric power and commitment to fiber made it a winner. (Click here for Mayor Hernberry’s update on the impact of the new data centers and apparently new wineries popping up in Quincy.)

Thank goodness for Microsoft. In this economy, we should all be grateful to companies that can still spend between $300 million to $700 million to build just one data center.

AT&T now says that any "FastConnect" subscription, even its DSL Lite offering of 768 Kbps down/128 Kbps up, qualifies for Wi-Fi Basic. The new statement reads: "AT&T Wi-Fi Basic service is FREE and already included if you subscribe to AT&T High Speed Internet, AT&T U-verseSM High Speed Internet, or AT&T FastAccess® DSL—all speed plans included.

There's still a $10 per month fee to upgrade to Wi-Fi Premier, which includes over 70,000 locations worldwide, along with the missing U.S. hotspots, but their Web site says that you have to have a 1.5 Mbps or faster connection to get the $10 per month upgrade. That may be out of date. That ordering page also says you need 1.5 Mbps or faster for free Wi-Fi, so that tends to confirm it hasn't been fixed. (It's even hosted at sbc.com, so perhaps that's part of the vestige of an older system, harder to update.)

Please note that iPhone subscribers still don't get free Wi-Fi on AT&T's Basic network.

The Zune doesn't include a Web browser or any Internet focused features; it's not an iPod touch. But you can use Wi-Fi to browse the Zune Marketplace for music and games, and download new songs in programmed channels, music selections created by a variety of artists and stations. Zune offers both music purchases and a subscription for unlimited music listening. The new models range from $149 for an 8 GB flash model to $249 for a 120 GB hard drive-based player.

The feature I'm most interested in is Buy from FM, which leverages the built-in FM tuner and very low-bandwidth data that's already pushed over analog AM/FM. (See my write-up of this feature from last week.) With Buy from FM, when you're listening to radio stations that participate, you'll be able to click a button and buy the song you're listening to if you're connected to a Wi-Fi network. Zune Pass subscribers can download the song at no additional charge. If there's no Wi-Fi network, the song download or purchase is queued.

Wayport's marketing head Dan Lowden said, "Obviously, it's cool because folks who already own a Zune device and just need to do an upgrade will be able to use this just as with any of the new Zune devices that they start selling as soon as possible." (Microsoft may have a little accounting work to do: Sarbanes-Oxley doesn't let you enhance a product in the market without a fee if you realize the revenue all at once.)

The benefit for Wayport is to have yet another hefty but undisclosed fixed sum underlying its fixed infrastructure costs. In the past, Wayport has done deals with Nintendo, ZipIt, and Eye-Fi to allow all devices in a category unlimited access at McDonald's locations. McDonald's obviously gets more customers, or existing customers who spend more time or visit more frequently.

A partnership with a hotspot operator means that Microsoft doesn't have to provide tools and their users endure frustration in joining a network. "We're experts enabling one click to get this network connected," Lowden said. He noted that Wayport has opened test labs to work with manufacturers in Japan, San Francisco, San Diego, and Seattle. "We're working with these guys from day 1 to make sure it's one click to get connected," he said. I'd also note that San Diego happens to be where Qualcomm's headquarters are located, not that Lowden gave me any tip-off there.

And I have to just say: burn, burn, burn on Apple. Despite Apple partnership with AT&T, which relies on Wayport to operate the AT&T-branded hotspot network and resells access to Wayport's own network, iPhone and iPod touch users have no inclusive Wi-Fi service. AT&T slipped a few times and ostensibly opened up their network or released details that iPhone users would gain free hotspot access--like all AT&T's fiber and all its standard and premium DSL customers.

As Wi-Fi becomes an expected part of any handheld gadget, the venues in which Wi-Fi is used multiply beyond cafes and hotels. Lifestyle locations--which could be clothing stores, nightclubs, ski resorts, and the tops of mountains suddenly become places where people want the same kind of access they have at home. Ultima thule is already unwired.

New York City considers plan to bring fiber to public housing residents: Wireless networks are definitely out in the recommendations of a private consultant to the city's Broadband Advisory Committee, ComputerWorld reports. They may opt to use $4m in a fund from Verizon and a potential $8m from the two incumbent cable operators.

The big difference between the two cities is the amount of time that the InteropNet team gets to produce a live, fully operational and redundant network. In Las Vegas, this was nearly a full week of time - a tight timeframe across 17 different vendors, but now we’re looking back at that timeframe as a luxury. In NY, we’ll be getting started Saturday morning, and the network needs to be delivered on Sunday morning for the registration desk and exhibitor move-in to begin. If you’re keeping score, that’s about 24 hours to deliver a working network. Sounds hard, but it’s even harder when you consider that this means four DS-3s from two different locations, 17 full and 7 half racks of network gear, all the fiber and copper that the network is delivered over, etc all have to get done. Good thing that with 2 and 3/4 kids, I’m not planning on much sleep, and I don’t think the rest of the team is either.

In order to try and get the network delivered in that short timeframe, we worked hard at Hot Stage to assure that everything is ready to go. With some luck, the work that we’ve done here will allow us simply to roll the network gear into place, run the cables, fire up and go.

Now, things never really work out that way but that’s what EM7 is going to be there for. We’ll watch in real time as the network elements come live and be able to let the other InteropNet vendors know if their gear isn’t behaving as expected or is not visible for all the areas of the network that it should be. We’ll keep track of all of this in the EM7 ticketing system so that after the show we’ll be able to analyze the behavior of the network and systems as we did after Vegas.

I’m looking forward to the show and once again working with some of the top engineers in the country on a complex and rapidly deployed network.  Speaking of which, we’re still looking for volunteers to help in the NOC.  Volunteers get to work with some really smart people, get an education that would be hard to get anywhere else, and get a trip to NY where your expenses (for things like hotel accommodations and food provided by the show) are taken care of.  Sound interesting?  Be sure and check out the application.

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What's been clear is that after spending more than $3m, the city couldn't acquire more than a few hundred regular subscribers, about 10 percent of the point they'd need to pay expenses and pay down capital outlay. But it turns out that the backend was as important as their network deployment, IDG News Service reports.

The latest city network administrator brought in Aptilo Networks for backend authentication and session processing, opened the network to 15-minute free trials, and started accepted ad hoc payment. The new network guru also let outsourced contracts expire and brought customer support and other services back in house to reduce expenses and improve the feedback loop. He discovered their existing authentication system was licensed for 500 users, so that might have explained their failure to grow, too.

The city now has 1,000 regular users at all levels, from pay-as-you-go to monthly household subscriptions. They've revised breakeven down to 2,000 subscribers, and say they are breakeven for expenses.

The other problem Lompoc had, by the way, is that the cable and telephone companies didn't sit still. I exaggerate, but when Lomopoc was planning its network, it had very poor coverage for its 42,000 residents for DSL and cable modem service. When the Wi-Fi network was announced, the incumbents started pulling copper, coax, and fiber, and dramatically improved network coverage. The $3m wasn't entirely ill spent so far: it was a kind of reverse incentive to the private companies to get their act together.

The Weekly also mentions Palo Alto considering fiber to the home, which the city incorrectly calls "Fiber to the Premise" (not "premises") in their request for proposal. Palo Alto installed an early city-owned fiber ring in the mid-1990s. That 40-mi. ring cost just $1.9m (in 1996 dollars) to build. The new effort would be entirely funded by partners, who would receive certain assets and contracts to anchor the project.