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story category Is EarthLink Exiting the Wi-Fi Industry?
Losing money isn't good for business
(old news - 11:32AM Sunday Nov 18 2007)
tags: business · wireless · trouble · municipal · EarthLink
Tipped by fatmanskinny See Profile
EarthLink has had a tough time trying to sort out the right business model. In the last year they have cut jobs, reworked commitments to MVNO Helio and shelled out $5 million for their delays in deploying citywide Wi-Fi in Houston. At the time that the latter situation occurred, EarthLink assured everyone that they were still thoroughly committed to providing free Wi-Fi and didn’t plan to lose momentum in trying to do so. Momentum has been lost. And EarthLink now says that investing additional money into developing municipal wireless systems is probably a bad idea. CEO Rolla Huff (who said earlier this year that the company would scale back plans but not nix them) says that it’s not in their shareholders’ best interests to spend money on free Wi-Fi. EarthLink seems to have plans to continue working on its few existing projects (like Philly Wi-Fi) but is considering “strategic alternatives” for exiting the Wi-Fi industry. So what market will the company try next?

Related:
  1. Earthlink Backs Out of San Fran Wi-Fi
  2. Corpus Christi Finally Gives Up on Earthlink
  3. 2 out of 5 Cities Take Wi-Fi Back from Earthlink
  4. New Orleans Opts To End Wi-Fi Network
  5. Earthlink Closing Philly Wi-Fi Network June 12
  6. Solar Wi-Fi Plan Ends In Lawsuit
  7. Earthlink Free Of Money Pit Helio -- Now What?
  8. MetroFi Antennas Could Cost $60,000 to Remove
Forums » Is EarthLink Exiting the Wi-Fi Industry?
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TK Junk Mail
Go ahead, make my day
Premium
join:2002-03-03
Margate City, NJ
clubs:
·Comcast

Sounds like a spinoff of their WiFi division

It looks like they are going to try and sell off their $40 million WiFi division to someone else. Good luck on that. There aren't going to be many companies looking to takeover failing Muni-WiFi systems with the only income coming from some maintenance contracts that Earthlink may hold.

Jodokast96
R.I.P Bassman442
Premium
join:2005-11-23
Erial, NJ
·Verizon Online DSL

Re: Sounds like a spinoff of their WiFi division

I don't know jack about jack, but I just think it's a little too early for systems like this. I give them credit for trying to stay ahead of the game, but I think it will be at least another 10 years before this becomes widespread, and only when there is such a huge requirement for it (along the lines of public works things like streetlights, sewer, etc.) that it will be paid for with taxes but run from the outside.
battleop

join:2005-09-28
00000

When are they going to learn?

When are these muni-wifi networks going to figure it out. Everyone thinks that Muni-Wifi is just a free Sprint/Verizon Wireless card.

WiFi can and does work. Look at all the Wisps that are around. The difference is that wisps don't give it away for free. Most do not rely on mesh to backhaul their network and they use CPE radios instead of sticking a wifi card in the customers computer.

Oh yea and they actually charge for the service so they can pay the bills so it can stay a float.
Edward1978

join:2007-07-23
De Soto, IL

Re: When are they going to learn?

Wish they would go to the Tamms are of Illiniose. Last county on the west side, Hick & Redneck area. I never knew Earthlink did wireless, until I saw they had it in New Orlens. That was the only place also under wireless service.
truocchio

join:2004-07-05
Miami Beach, FL


edit:
November 18th, @12:45PM

At least some of us get validation.....

for standing up in the face of this ridiculous concept, even though it was unpopular. The reason I have said from the outset that this will fail is because I have a vast understanding of radio and wi-fi technology. Every time I said this will not work (for over three years now) I was derided and called many different unflattering names.

The concept is easy to get behind. Free internet everywhere. But if any of the proponents took a look under the hood before buying the car, they would have seen that it is all smoke and mirrors.

I hope this is a lesson to many people that they should do some research before taking a strong position on anything. Me and many others were vehemently attacked for trying to prevent to waste of taxpayer dollars and a incalculable amount of public funded muni management hours on an idea that has little to no practical real world value and is infeasible.

New Prediction...no one buys EL's muni division because it is worthless.

TMMerlin
The Devil made me do it

join:2003-06-19
Oxford, MI
·EarthLink

Re: At least some of us get validation.....

I agree with you ..as I was and still am ..NOT a WiFi supporter..it's a technology that is "ah gee wiz bang" but waiting for "a reason to WORK" ..! It's a solution to a problem that begs for an answer ..WiFi just is not the answer..BUT ..if your willing to "sit under the lamp post" with the WiFi tranceiver .. you'll more than likely be a real happy camper..! (do they allow tents on public sidewalks?)

Now then ..if " I " was the guy deploying a municiple WiFi network ..I would do it this way ..

- Find the highest topography point in the community ..
- create a "checker board" broadcast grid based on 1 sq mile
- In the center of each grid ..attach the tranceiver and float a helium filled weather ballon and raise it to the " center heigth, above)
- Color the the ballons red-yellow-blue, just like on WonderBread packages...this way people won't complain when they look up and see 1 million ballons in the air ..(chuckle).
--
Some people hear their own inner voices with great clearness and they live by what they hear. Such people become crazy but they become legend.

ROBJO

@bellsouth.net

Re: At least some of us get validation.....

EarthLink isn't advertising at all! The are letting the CMO go at the end of the year!

fatmanskinny
Premium
join:2004-01-04
Atlanta, GA

Re: At least some of us get validation.....

CMO??? Chief Monkey Officer?
hottboiinnc
Kyle

join:2003-10-15
Toledo, OH

Doing next-

They're actually working with AT&T and expanding their DSL coverage area. My city now has Earthlink DSL available but they're not advertising for it.

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ
clubs:

EarthLink flash.

There is no free lunch.

CylonRed
Premium,MVM
join:2000-07-06
Bloom County
·Speakeasy

Re: EarthLink flash.

said by batterup See Profile :

There is no free lunch.
Yep - and it is funny - you would think they would have looked at all of the 'free' dialup internet connections and see how they did at making money before deciding on the free WiFi business model...
Forums » Is EarthLink Exiting the Wi-Fi Industry?


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