City officials said BellSouth was upset about the plan to bring high-speed Internet access for free to homes and businesses to help stimulate resettlement and relocation to the devastated city. Around the country, large telephone companies have aggressively lobbied against localities launching their own Internet networks, arguing that they amount to taxpayer-funded competition. Some states have laws prohibiting them.

BellSouth spokesman Jeff Battcher disputed the city's version of events.

"Our willingness to work with the mayor and the city is still on the table," Battcher said. "We've been working for over two months on this building . . . we are a little surprised by these comments."

Battcher said Oliver spoke directly with the mayor on Tuesday after the WiFi announcement and told him they needed to continue to work through issues regarding the building. He said BellSouth is awaiting the mayor's response.

The police have been scattered in hotels, precinct stations and other makeshift locations since the headquarters was ruined in the hurricane and had been preparing to move to the building after months of discussions with the phone company, city officials said.

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