Vos pointed to signs that the incumbents may be taking an "if you can't beat 'em, join 'em" approach. In particular, she noted that AT&T Inc. recently won the contract to install a municipally sponsored citywide Wi-Fi network in Riverside, Calif. In its press release, AT&T called the Riverside project its largest citywide Wi-Fi deployment "to date," implying that more such projects were anticipated.

Vos sees additional trends emerging, such as multiple municipalities working together for even larger Wi-Fi networks.

"We've moved from downtown hot zones to citywide and even countywide networks," she said. For example, Suffolk and Nassau counties on Long Island, N.Y., have put out a joint request for proposal for a single network to cover both counties, she said.

Whether you agree with municipal projects or not, they are becoming a reality. Whether they become successful, however, will be hotly debated for some time to come.