Madison, Wisc., will have citywide Wi-Fi: The network will be built without taxpayer money, but the local utility will allow the placements of antennas on their streetlights. Downtown will be live by March 2006; the entire city by early 2007. The agreement with the utility isn't exclusive, nor is there a price guarantee for how much the service will cost--it's a wholesale network.
Read about it in articles at The Capital Times and Wisconsin State Journal, and in a press release from WFI, one of two companies involved in the build out and Google's bid partner for the San Francisco municipal network.