EarthLink Scales Back, Focuses Muni Wi-Fi Effort

EarthLink’s latest move is sending minor shockwaves through the Wi-Fi community. The company has decided to turn its attention away from municipalities and focus on existing deals and big cities. The company cites its first quarter earnings, or losses rather, as the reason for its shift in focus. With a loss of $30 million the company plans to cut in half its capital expenditures on municipal Wi-Fi services. The company has also discovered that not only technical problems lie in their path to Wi-Fi dominance but political in fighting in the cities looking for service has become a huge stumbling block. Low subscription response has also put a damper on the enthusiasm of EarthLink and other providers. Until municipal Wi-Fi becomes more lucrative and attractive to providers it may remain just a pipe dream.
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