Earthlink says it may shut down Philadelphia’s citywide Wi-Fi tomorrow if the city isn’t able to reach a takeover agreement.
Earthlink, which stopped accepting new customers last week, has given the city until tomorrow to come up with a plan to take over the system or it could begin to take down the network, according to sources close to discussions. An original deadline of last Wednesday came and passed.
The city has been working since Earthlink announced intentions to leave the municipal wireless business last year to salvage the system without taxpayer dollars, including so far unsuccessful discussions with an Ohio nonprofit that recieved $25 million to work on bridging the technological divide between rich and poor.
“We have been participating in discussions about what options and opportunites may exist,” said Douglas Oliver, spokesman for Mayor Michael Nutter. “We paid a lot of attention to this and explored several different options but they have proven to be fruitless.”
Originally, the plan was for Earthlink to build a citywide wireless network, sign up customers, and fund a non-profit called Wireless Philadelphia to provide internet access to low-income individuals.
The problem is that Earthlink couldn’t figure out a way to build the network profitably. The municipal network was originally expected to use 25 nodes per square mile, but required as many as 47, with an average of 42 nodes per square mile.
The company has stopped expanding the network with about 70% completed, and is no longer looking to sign up new customers. The entire project is basically at a standstill and will remain that way until sold to another operator.
In other [bad] news, MuniWireless reports that Wildfire Broadband appears to have shut down its Wi-Fi service in downtown Scottsdale, Arizona. According to the East Valley Tribune, “the paid service meant to capitalize on flashy new downtown projects and an influx of new residents had to compete with free Wi-Fi service that has become increasingly commonplace at coffee shops, restaurants and hotels.”
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