As envisioned 20 months ago, Chicago would become one of the first big U.S. cities to blanket its streets and neighborhoods with a wireless Internet signal so residents can connect to the Web in their homes and wherever they traveled in the city, the Chicago Tribune reported.

But technology has advanced and the cost of online consumer access has dropped dramatically. As a result, possible WiFi deals with EarthLink Inc. (NASDAQ:LNK) and AT&T Inc. have lost their luster and talks stalled.

Other cities -- San Francisco, Philadelphia and Houston among them -- also had visions of free, advertiser-supported high-speed Internet connections citywide. But politics, as well as technological advancements, have come into play.

Even if Chicago declines to back a municipal wireless network, city residents soon will gain more Internet connection options, the newspaper said.

Sprint Nextel Corp. is set to launch a wireless WiMax network in the city next spring. WiMax is like WiFi, but covers miles of territory with a wireless Internet signal via radio spectrum, whereas WiFi transmits hundreds of feet per transmitter.