Title
WIFI Service Provider Concessions Lease Agreement and Contract Extension (Ordinance S-52010) - District 8
Description
Request to authorize the City Manager, or his designee, to extend Contract Number 152010 with BOINGO Wireless, Inc. to allow continued public wireless internet (Wi-Fi) support service in all terminals, the Rental Car Center, and terminal curbsides at Phoenix Sky Harbor International Airport (PHX). The current contract is scheduled to expire on July 31, 2025.
Report
Summary
Fast and free Wi-Fi is an essential amenity for the thousands of passengers that visit PHX every single day. On average, more than 37,000 users connect to the public Wi-Fi service daily. In 2024, more than 13.7 million passengers accessed the public Wi-Fi service at PHX.
Through a contract with Boingo Wireless, Inc., the Aviation Department (Aviation) provides public Wi-Fi service at the following PHX locations: all public access areas of Terminal 3 including curbsides; all public access areas of Terminal 4 including curbsides; and the Rental Car Center.
The current revenue contract is due to expire July 31, 2025. The airport Wi-Fi services market is undergoing a fundamental shift. Traditional revenue-generating contract models are being phased out as airports increasingly transition to managed service arrangements that operate at cost to the airport. Based on this industry trend, Aviation has determined it will be most beneficial to bring Wi-Fi services in-house provided by the City. As a result, Aviation is requesting to extend the term of the current contract until the Wi-Fi services can be fully transitioned in-house.
Contract Term
The contract term of the extension will be one year, effective August 1, 2025, and continuing thereafter month-to-month until the date the Wi-Fi service is fully transitioned to the City.
Financial Impact
The financial terms of the contract will not change during the extension period. The provider will continue to pay rent to the City in the amount of Minimum Annual Guarantee (MAG) or 35 percent of gross sales earned, whichever is greater.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board, recommended approval of the item on May 15, 2025, by a vote of 7-0.
Location
Phoenix Sky Harbor International Airport, 2485 E Buckeye Road, Phoenix, Arizona
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.