yes, need to know how to get the rival to move out of the door of the first gym too ???
I had the same problem and someone already answered it earlier in this thread (post #157 I think). You have to go south under what looks like a roller coaster then go down some rock stairs and into a cave. Explore the cave and talk to everyone and he should be gone when you get out. What threw me off was that the rock stairs looked like the end of a path, not something you could go down.
Figured this out five minutes ago, thanks anyway!
EDIT: also appears you can go onto the wifi now!