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A spate of providers, including Boingo and Deutsche Telekom's (DT) T-Mobile, now offer Wi-Fi access in places like Starbucks (SBUX) and other locales, charging as much as $10 a day for wireless Web access. Wi-Fi service providers generate about $500 million in revenue a year, says consultancy Parks Associates. Those sales could dwindle—or end up in the coffers of rivals—as city-run Wi-Fi takes off.