Earthlink bails from municipal Wi-Fi, casts its net for AOL dial-up
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After putting several of its municipal Wi-Fi partnerships on hold last year, Earhlink has decided to escape from this market entirely, concentrating instead on dial-up Internet access and partnerships with broadband carriers.
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With a rash of muni Wi-Fi projects collapsing, companies and cities realize their initial approaches to providing ubiquitous, free network connectivity aren't working. The problem is Wi-Fi is too expensive to deploy, and there's not enough user demand.
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Plans for municipal Wi-Fi in a dozen cities currently in negotiations with EarthLink may be in jeopardy as the company is imposing new demands on how the networks are to be paid for.
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While nobody expects municipal Wi-Fi to go away, analysts say that EarthLink's plan to lay off 900 employees shows that business models aren't yet mature.
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Internet service provider EarthLink is drawing fire from customers after launching a test program in which it redirects nonexistent domains to a company-provided error page containing suggestions, a search box and advertisements.
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With EarthLink no longer pushing into the municipal Wi-Fi business, the wireless network it previously wanted to build in San Francisco likely won't happen.
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But does it fit the bill for muni Wi-Fi? While the promise of free-for-all municipal Wi-Fi networks remains on the horizon for most â and a Googly mess for others â mesh wireless, the technology that utopians fancy will float us away on a cloud of education, is making practical progress.â¦
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MacCentral - Internet service provider (ISP) EarthLink Inc. on Tuesday announced the launch of EarthLink Free Online Calling, a Voice over Internet Protocol (VoIP) service that enables their Mac and PC to make calls over the Internet free of charge. Based on Session Initiation Protocol (SIP), the service works with a Mac or PC equipped with a headset or an Analog Telephone Adapter (ATA). Users can make unlimited calls to other SIP users, and can also listen to voicemail via e-mail. The service also offers an online calling log and online account management. ...
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EarthLink Inc, one of the US&#39;s largest consumer ISPs, said yesterday it has started offering free voice over IP calls to subscribers of its high speed service.
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(InfoWorld) - EarthLink's announcement that it will lay off 900 people is a blow to broadband competition, but some industry followers say it doesn't signal the end of municipal Wi-Fi. While EarthLink's statement about the job cuts doesn't include a single mention of Wi-Fi, the company's municipal Wi-Fi business is likely to be hit hard. A filing with the U.S. Securities and Exchange Commission made on Tuesday says the position of president of municipal networks is being eliminated and Don Berryman, who held the position, is one of the employees being let go. At the end of June, EarthLink had just over 2,000 employees. In addition, EarthLink has been reining in its municipal efforts since earlier this year. Most recently, in July, the company saidÂ it would not take on any new municipal Wi-Fi projectsÂ until it's confident of a reasonable return. EarthLink's woes could eliminate the potential for new competition in the broadband industry. "What you won't see any more is a new entrant in the telecom business coming in like EarthLink did and trying to build green-field networks and compete against the incumbent to build a third pipe to the consumer," said Ron Sege, CEO of Tropos Networks, the vendor that supplies EarthLink with Wi-Fi network equipment. Instead, he suspects that existing operators will build Wi-Fi networks as an extension of their DSLÂ offerings and that cities may build the networks in order to use them for public safety applications or meter reading. EarthLink's troubles point to a couple of problems with many of the municipal Wi-Fi business plans, said Phil Solis, an analyst at ABI Research. "The whole premise of doing municipal Wi-Fi was that it would be extremely low cost," he said. "But the low-cost assumptions were built on having 30 or 40 Wi-Fi [access points] per square mile." In practice, operators found they might need as many as 100, which changed the economics, he said. In addition, some operators assumed that the municipalities would use the networks, but in some cases that didn't happen. Some newer contracts are requiring municipalities to commit to a certain level of business, guaranteeing the operators some revenue, he said. Solis called EarthLink's restructuring a "reality check." Operators and cities are better off considering Wi-Fi, WiMax, and cellular, depending on the application, he said. Wi-Fi can still work in dense areas and will work even better when 802.11n, a faster Wi-Fi standard, becomes widely used, he said. Given more time, EarthLink might have succeeded, Sege said. Gary Betty, EarthLink's former president and CEO, started the municipal Wi-Fi business at the company. But Betty suddenly died in early January, leaving no one to "carry the flag" for municipal Wi-Fi, Sege said. He suspects that Betty may have had a long-term growth plan that would have seen the networks start to pay off in around five years. New President and CEO Rolla Huff hopes for a quicker payoff, he said. EarthLink, which has scheduled a conference call for Wednesday to further discuss the restructuring, has not said what it plans to do with the Wi-Fi networks it has already built. It operates networks in Anaheim, California; Corpus Christi, Texas; Milpitas, California; New Orleans, and Philadelphia. It could continue to operate them or consider selling them to Clearwire or Sprint Nextel, companies that are just beginning to build WiMax networks. EarthLink's customers and access to city infrastructure for hanging network equipment could be valuable to them, Sege said. News of the restructuring could cloud the municipal Wi-Fi initiative in San Francisco, where city officials early this year finished negotiating a contract with EarthLink. The network still needs approval by the city's Board of Supervisors. A committee is scheduled to vote next week whether to send the contract on to the full board for approval. Opponents have used EarthLink's financial woes to raise question the viability of the plan. In its statement, EarthLink said it expects subscriber additions to slow down in 2008. At the end of June, EarthLink had more than three million dial-up and 1.1 million broadband subscribers. In addition to offering wired and wireless Internet service, EarthLink is also part owner of Helio, a struggling mobile virtual network operator. (Stephen Lawson in San Francisco contributed to this story).
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A few months after rumors of an Earthlink acquisition prove false, the company skips out on a key hearing regarding the fate of Philadelphia's municipal Wi-Fi project.
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After launching an ambitious effort to build a municipal Wi-Fi network, Philadelphia's CIO is now eying the possibility that Earthlink --  a partner in the move -- may pull out.
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By Andrea Kelly, The Arizona Daily Star, Tucson  May 31--A city consultant recommends that Tucson solicit proposals to build a citywide WiFi network to provide residents with a lower-cost high-speed Internet option.   A study by Maryland-based Columbia Telecommunications Corp.
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EarthLink says it can't afford to foot the bill to build citywide Wi-Fi networks, jeopardizing cities' plans to provide low-income residents with affordable broadband.
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(InfoWorld) - Despite the tribulations of launching a regional wireless Internet network, some cities are making progress by sharing their hard-won lessons. Stung by criticism of high cost, flaky service and pandering to recreational Web surfers, cities can justify their investment in free wireless service by using the networks to support public safety radio traffic, attract new businesses and abolish the "digital divide" that can stop low-income workers from landing Internet-age jobs. That's the message from government technology workers gathered at the MuniWireless 2007 conference in Newton, Massachusetts. Ubiquitous wireless coverage could also improve residents' lives by offering automated traffic monitoring, parking enforcement and meter reading, they said. But sometimes even those goals fail to sustain public support when a network hits surprise hurdles, said Bill Oates, chief information officer for Boston. The city had been running its new Wi-Fi network for a month in the blocks surrounding city hall when citizens began to complain that the Internet service provider used a content filter that blocked certain Web sites. "We will keep hitting bumps in the road, we know that. But sometimes it makes you ask if it's WiMax versus Wi-Fi versus 'Why even try?'," Oates said Tuesday in a conference session. Cities can also face a challenge when the local historical society complains that wireless antennas can harm the architectural appearance of city buildings. City workers in Malden, Massachusetts, found a way around that problem by fitting a Wi-Fi antenna inside the storefront sign of a local bar. The business owner was happy to donate the location in exchange for a strong signal, and the new node boosted coverage in a heavily populated part of town, said Anthony Rodrigues, the city's director of information technology. That example illustrates that the politics of launching a wireless network can be a tougher challenge than the technology, Rodrigues said. It is fairly easy to link the networks in neighboring towns to share coverage areas or fire response, but much harder to persuade elected leaders to talk about funding the effort or agreeing who will control the network. The political hurdle applies far beyond the borders of New England, where the conference is taking place, said Esme Vos, the founder of MuniWireless.com , a blog and sponsor of the conference. Until recently, public wireless networks have existed only in major cities with large budgets, including Philadelphia, Chicago, Houston and Portland, Oregon, she said. But across the U.S., the number of municipalities with planned or deployed public broadband networks has risen from 122 in July 2005 to 385 in May 2007, according to MuniWireless. The downside of that success has been increased public scrutiny of the investment involved, and demands from some taxpayers that the networks should be financially self-sufficient. That pressure has pushed the industry to consider many new business models, borrowing ideas like the advertising embedded in text messages or commercials that play over cell phones, she said. Others have asked government regulators to force content providers to bundle free wireless access with existing cable television, phone service, wired Internet access, VOIP (voice over Internet Protocol) and IP television packages. However, Vos is passionate that governments should not insist that municipal Wi-Fi pay for itself, just as they don't require public utilities and paved highways to run at a profit. Governments throughout Europe already support public networks that way, not only in urban centers like Stockholm, Paris, Amsterdam and Milan, but throughout rural regions, she said. In the meantime, municipal technology leaders in the U.S. should continue to hone their skills at expanding coverage and supporting reliable service. "There have been a lot of negative stories in the press recently, saying 'these things don't work'," Vos said. "But people are learning from their mistakes. If you have to use 40 nodes instead of 20 nodes to cover the area, we can learn from that."ADVERTISEMENTIBM Information On Demand 2006Industrial Industry Leaders, please join us at IBM's premier information management global event, IBM Information On Demand 2006, October 15-20, Anaheim, CA. More IBM business and technical solutions content in one place than ever before! Select from  over 800 sessions. Register today!
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While the news about municipal Wi-Fi has been grim lately, columnist Craig Mathias describes why he thinks it will inevitably succeed.
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The Earthlink-Google plan for free WiFi in San Francisco appears to be derailed -- for now.