EarthLink Terminates Philadelphia Wi-Fi

So goes the notion of metropolitan Wi-Fi networks: EarthLink has announced it will shut down Philadelphia's Wi-Fi network as of June 12.

Struggling ISP and broadband provider EarthLink has announced that it is pulling the plug on Philadelphia’s Wi-Fi network as of June 12, 2008. The move marks the latest chapter in EarthLink’s rapid exit from the never-really-materialized municipal Wi-Fi arena, in which metropolitan areas attempted to set up various forms of Wi-Fi Internet access for residents: late last year, EarthLink announced it was cutting funding for municipal Wi-Fi projects, preferring to take the hits for breaking contracts than continue to pour money into the projects. Previously, it had backed out of Wi-Fi networks in San Francisco and Houston.

EarthLink says it has been trying to pass off the $17 million Philadelphia Wi-Fi network—which it never completed and which never operated to spec—to a new owner, the city, or a non-profit organization at no cost, but that it was unable to work out a deal. (And its hard to blame the city or other organizations for not wanting to pick up responsibility for the project.) EarthLink says customers have a 30-day transition period to work out new methods of Internet access, and will shut down the network beginning June 12. The company has also filed with a federal court seeking permission to remove its equipment from Philadelphia’s street lights and other infrastructure; it’s also suing to limit its liability for the failed project to $1 million.

A few years ago, municipal Wi-Fi networks were all the rage, with the idea that publicly-funded or public-private networks could provide low-cost Internet access in densely populated areas at rates substantially lower than typical broadband pricing. However, the Wi-Fi networks proved to be much more expensive to build out than originally anticipated, indoor reception proved less reliable than expected, and cable and telephone companies fought back by slashing introductory rates on their broadband services. Currently, Minneapolis seems to be the only major U.S. city with a shot at creating a sustainable city Wi-Fi service.