News Roundup

Earthlink To Pull Plug On N.O. Wi-Fi

City Business
April 28, 2008
by The Associated Press

NEW ORLEANS — After failing to turn up a buyer, Earthlink Inc. will shut down its municipal wireless network in New Orleans next month.

Atlanta-based Earthlink had said that it hoped it sell all of its municipal networks. But Earthlink spokesman Chris Marshall said that no one was willing to assume the New Orleans business, even free of charge.

The network offered free lower-speed Internet access and higher speeds for a fee. It will shut down after May 17.

Earthlink is giving customers who paid for the higher-speed service special offers on the company’s other Internet subscription services.

The local network was one of five rolled out by Earthlink in 2006 and 2007.

Since deciding earlier this year to get out of the municipal wireless business, Earthlink has reached agreements with the cities of Corpus Christi, Texas, and Milpitas, Calif., which are taking over ownership of their networks.

Earthlink is still in negotiations with officials in Philadelphia and Anaheim, Calif.

The company, which spent $4 million installing its New Orleans network, has not been able to pinpoint a specific reason why its venture into municipal wireless failed.

“We did not see a level of usage of the service, both in New Orleans and other markets, that made sense for us to continue on,” Marshall said.

Craig Settles, a municipal wireless analyst, said such networks could be taken over and used in creative ways by universities, the medical industry or cities themselves.

“To come up with ideas requires a certain level of creative thinking,” Settles said. “This challenges some cities more than others.”