A federal judge has rejected a challenge by a pay phone operator alleging that New York City ran afoul of the Telecommunications Act by entering into a franchise agreement with another company to provide free Wi-Fi connectivity on city streets.

In April 2014, the city issued a request for proposals to develop telecommunications structures on city streets to provide both phone service and free Wi-Fi. Telebeam Telecommunications Corp., which had a franchise with the city since 1999, and CityBridge submitted proposals.