EarthLink says restructuring does not mean abandonment of muni WiFi business
Wednesday, August 29th, 2007
By now you’ve undoubtedly read and heard about EarthLink’s announcement of a major restructuring which will include the elimination of 900 jobs–about half of its total workforce–and the shuttering of four regional offices. CEO Rolla Huff said that although the company will expect to lose up to $109 million this year, it will not abandon it’s pursuit of the muni WiFi marketplace.
Despite the difficulties, Earthlink says it remains committed to building the wireless networks in Philadelphia, Anaheim, and other cities it has already won the bids for, but other projects in Houston, Chicago, and possibly San Francisco are likely to fall by the wayside.
In addition, Huff said that the company will work on developing a new business model for muni WiFi, which will likely involve local governments assuming more of the financial risk as well as committing to becoming anchor tenants for the networks.
For a long time EarthLink was essentially the “Big Man on Campus” when it came to muni WiFi, and their recent actions certainly will not put a good light on the concept of citywide wireless networks. It remains to be seen if the company can pick up the shattered pieces and start anew, or this really is the beginning of the end, both for them as well as muni WiFi. There is an opportunity for other providers to zoom in and provide wireless services, but they’re going to have to do it in a way that will have to be financially and technologically prudent. Time will tell if this will come to fruition.

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The emerging city of
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