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EarthLink drops Wi-Fi in Philadelphia

by on14 May 2008

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Pulls the plug on its service


EarthLink has announced that it is looking for a buyer for its $17 million Wi-Fi network in Philadelphia, Pennsylvania. The City-wide network is about 80 percent completed. EarthLink indicated in a press release that it has not been able to close a deal with the City of Philadelphia or with an Ohio non-profit group that provides fiber network to public and non-profit institutions, even after months of negotiations.

The local newspaper, the Philadelphia Inquirer, reported that the Ohio non-profit group was OneCommunity, based in Cleveland, Ohio. EarthLink reported that it tried to donate the Wi-Fi network for free, as well as pay it cash and donate new Wi-Fi equipment; but the deal fell apart “…due to unresolved issues among the City, Wireless Philadelphia and the non-profit.”  Philadelphia’s Mayor, Michael Nutter, issued a statement that he was “disappointed” with EarthLink’s actions and that the City might still hold EarthLink financially responsible for its contract obligations in the 10-year contract it signed with the City only two years ago. The City does not believe that another network operator would have interest in assuming the Wi-Fi network in its uncompleted state.

There are currently 6,000 EarthLink customers in Philadelphia.  They have been given 30 days’ notice to move to another services provider before the network is completely shut down on June 12th.  The approximately 900 low-income subscribers who were receiving subsidized services under a “digital inclusion” program will be provided free EarthLink dial-up service for one year, according to EarthLink.

EarthLink’s Wi-Fi network has been a bust, for the most part. Maybe the idea was ahead of its time, the timing was off, its business plan was faulty, or perhaps the U.S. economic slowdown derailed what could have been a great thing. EarthLink has managed to get out of its Wi-Fi city contracts by transferring ownership to the cities, leaving some of them holding the bag, or by simply closing down the service.

EarthLink filed previously in federal court to begin removing Wi-Fi radios from City street lights and to limit its liability. In a statement EarthLink’s CEO and Chairman indicated that “Since we have exhausted our efforts to find a new owner of the network, our only responsible alternative now is to remove our network at our cost and assist our Wi-Fi customers with alternative ways to access the Internet.”

Last modified on 14 May 2008
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