According to the Mercury News, Philadelphia and Verizon have worked out a deal to make the whole town wireless. From the article:
The city of Philadelphia and Verizon Communications Inc. struck an agreement Tuesday that would allow the city to provide wireless Internet access as a municipal service even though Gov. Ed Rendell signed legislation giving Verizon the power to scuttle the project.
Philadelphia's plans are the most ambitious of any major U.S. city to provide free or cheap high-speed wireless to all residents.
While it sounds like there are still a few things to work out, it sounds like it's going to happen.