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Is blocking WiFi legal?
While I agree this issue should be considered mostly non-technical, it seems to me that modifications to the building structure (radio wave transparency) could be legally used in such cases. I remember there was a security specification for preventing radio signals from leaving a building (was that Tempest?). Suppose the walls were impermeable to radio waves, then it seems to me that the university could certainly control whether their own WiFi was active during certain times of day, and prohibit others from installing Wifi in the room. I would guess that retrofitting this radio wave blocking is expensive. It may even be expensive to build in new construction.