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Citing billions of dollars in costs to upgrade its cellular Internet networks, Verizon announced that it would phase out free WiFi connection for New York City DSL subscribers.

Verizon announced the decision on Wednesday accompanied by plans to implement a paid cellular Internet service in the New York area.

Being gradually eliminated over the next two months, the free service was made possible by short-range WiFi transmitters installed in phone booths in 2003.

Verizon Wireless has spent $138 million this year upgrading its cellular network in the New York metropolitan area. This is in addition to $475 million investment in 2004.

The service is based on EV-DO, a technology that offers wider coverage more stable connections for untethered laptop users. WiFi, while faster, doesn't have the range of EV-DO.

"The usage level, as other alternatives have become available is not enough to justify continuing it when there are other options. A lot has changed over the past two years in terms of wireless access," said Bobbi Henson, spokeswoman for Verizon.

"Everybody's trying to look for a business model around (Wi-Fi).... But the better business model in our mind is the EV-DO network."