There’s still no word from EarthLink on the future of Philadelphia’s wireless broadband network. The company failed to show up for a hearing in Philadelphia yesterday that was called, in large part, to discuss the company’s announcement that it would make no more significant investments in muni wireless projects.There’s still no word from EarthLink on the future of Philadelphia’s wireless broadband network. The company did not attend a hearing in Philadelphia yesterday that was called, in large part, to discuss the company’s announcement that it would make no more significant investments in muni wireless projects.
According to a story in this morning’s Philadelphia Inquirer, “EarthLink made it clear by its absence that it did not want to be peppered in public with questions while it rethinks its business strategy.”
The company did, however, submit an unsigned statement to the city’s Committee on Technology and Information Services in which it stated it has spent more than $20 million on the project, considerably more than the $12 million to $15 million that had been projected.
“While we are sensitive to the city’s concern about the future of the project,” the statement said, “we are not able to provide complete answers because of confidentiality agreements with other providers that may have an interest in this network and our status as a publicly traded company.”
In his testimony to the committee, Greg Goldman, CEO of Wireless Philadelphia, the not-for-profit corporation behind the network, reiterated that EarthLink holds a 10-year contract with the city and any other provider that might assume control of the network would be obligated to fulfill it.
His 12-point status report on the successes of the network included glimpses of EarthLink’s financial commitments to the city that highlight the revenue the network is generating alongside summaries of its successes in addressing the digital divide.
The network, which is being built at no cost to the city and which holds no anchor tenant commitments requiring the city to purchase services from EarthLink, is about 75 percent complete. Wireless Philadelphia’s contract with EarthLink calls for a $2 million payment from the company to the city, $450,000 in inspection fees and rental fees of $2 per month for each streetlight used in mounting antennas, along with 3700 free accounts for city workers to access the network. The contract also calls for 23 free zones and 25,000 reduced price accounts for low-income families that qualify in WP’s digital inclusion program.
That’s a significant commitment above the cost of the deployment–good for Philadelphia but it could hinder EarthLink’s options.
Click here to read the Inquirer’s story.
Click here to read Greg Goldman’s comments.
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