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story category New Orleans Opts To End Wi-Fi Network
Earthlink failed to transfer network to city or third party
(old news - 01:01PM Saturday Apr 26 2008)
tags: business · wireless · trouble · municipal · EarthLink
Tipped by LiamJunket See Profile
Earthlink is in the process of figuring out what to do with the few remaining Wi-Fi networks left over from its ambitious plans to blanket the nation with wireless cities. As part of that process, they have announced that they will be shutting off their New Orleans Wi-Fi network as of May 18th. Earthlink apparently tried to sell the network as well as to transfer it to either the city itself or to a third party; all attempts to do so have failed and New Orleans will now just lose the network entirely. Earthlink assures customers in the area that the company would be happy to provide them with alternate EarthLink high-speed broadband or dial-up services after their service is terminated. After significantly cutting its spending, Earthlink was able to turn a profit in the first quarter of this year.

Related:
  1. Earthlink Backs Out of San Fran Wi-Fi
  2. Is EarthLink Exiting the Wi-Fi Industry?
  3. Corpus Christi Finally Gives Up on Earthlink
  4. 2 out of 5 Cities Take Wi-Fi Back from Earthlink
  5. Earthlink Closing Philly Wi-Fi Network June 12
  6. Solar Wi-Fi Plan Ends In Lawsuit
  7. Earthlink Free Of Money Pit Helio -- Now What?
  8. MetroFi Antennas Could Cost $60,000 to Remove
Forums » New Orleans Opts To End Wi-Fi Network
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LiamJunket
Premium
join:2002-03-03
Ocean City, NJ
·Comcast

Dumping WiFi lost $61M in revenue & saved $145M in costs

Earthlink, until recently, was desperately trying to grow revenue due to the ever shrinking dial-up customers they had and were trying to replace. To replace those dial customers they went in 10 different directions - and the biggest losing move was to get in to the muni-WiFi arena. Now that they are rapidly unwinding that commitment, their costs have gone down dramatically - much more than their reduced revenues.

Unfortunately, for the long term prognosis of the company, they still haven't found a way to grow revenue while keeping costs in line. So while they have made a nice short term turnaround, their long term prospects still look bleak.
--
My BLOG .. .. Internet News .. .. My Web Page

PhoenixDown
-- Wants FIOS
Premium
join:2003-06-08
Fresh Meadows, NY
clubs:

Re: Dumping WiFi lost $61M in revenue & saved $145M in costs

Muni-wifi may not have been the best approach but city-wide wifi networks where users would subscribe to high speed connections like their Cable or DSL counterparts sounds plausible. I'm surprised it didn't work out better.
patcat88

join:2002-04-05
Jamaica, NY

Re: Dumping WiFi lost $61M in revenue & saved $145M in costs

With muni wifi your fighting against shitty Centrino laptops with zero gain antennas and no tx power, and your fighting with really slow speeds compared to Cable and DSL (who gets more than 1.5 mbit/s on wifi WISPs? even if backhaul is more than a T1, you'll be rate limited to a T1). Also remember your dealing with incredible inertia with existing Cable and DSL, and alot of cable and DSL providers now offer 99 cent broadband 768k or 1m down and $15-$25 a month, and they always work, rather than wifi which can be degraded by 2.4 interference or congestion over precious 802.11b links.

Renard2008

@comcast.net

All due respect ... forget about Earthlink for a second and think about the city; of all cities out there I think NOLA was one of the most unfortunate choices - they have much bigger things to worry about, and precious little money to spend on non-essential stuff like wi-fi.

Just my opinon, though.

factchecker

@cox.net

Re: Dumping WiFi lost $61M in revenue & saved $145M in costs

Just to give you heads up... The muni-wifi project in New Orleans predated Katrina and the Earthlink project.

It was originally deployed in order to monitor cameras placed in high crime sections of the city.
patcat88

join:2002-04-05
Jamaica, NY

Re: Dumping WiFi lost $61M in revenue & saved $145M in costs

How does wifi have enough bandwidth to have 10s of cameras going over it? 11B is 4.5 mbitps and 11G is 20mbitps.
truocchio

join:2004-07-05
Miami Beach, FL

Re: Dumping WiFi lost $61M in revenue & saved $145M in costs

thats why it failed so many different times...great expectations and nothing to deliver.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·Cox HSI
·AT&T Southwest

Earthlink....

.... seems like bad news all around, like the sinking ship...

... However, they are actually making the right moves NOW to save the company and right the ship.

They need to get these big losers off their backs, even if it means taking a hit up front. No use throwing good money after bad, so to speak. I really hope Earthlink makes it. They are one of last surviving independents.
--
"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!)

jchambers28

join:2007-05-12
Alma, AR

earthlink

earthlink is going belly up I don't think they will be around much longer
hottboiinnc
ME

join:2003-10-15
Toledo, OH

Re: earthlink

Same here. They need to come up with a partnership with someone in order to survive the long haul or get gobbled up by someone.

viperm
Carpe Diem
Premium
join:2002-07-09
Winchester, CA


1 edit

Re: earthlink

The biggest problem with the whole Muni WiFi project is you have one vendor Earthlink willing to put money into it.

1. The cities never want to spend the money to install or run it.

2. They want to charge you for the use of light poles and municipal buildings (Anaheim was the worst at gouging Earthlink)

3. Motorola who designed the system raped Earthlink to install all the equipment and was the real winner in all this at the cost of Earthlink.

4. Everyone wants to base the Muni systems on an advertising business model which NEVER works.

We told them this when we did some consulting and install work for them. Now we will get paid to rip it all out!

Earthlink listened to the wrong people about how to design a muni network(motorola)

If you want a muni system to work you can't count on Ad revenue, voip customers etc. You have to have a big Anchor tenenat to support the cost of the buildout and you have to sell higher bandwidth to business customers from your main tower sites. Doing this will offset the costs and expenses of the regular WiFi customers.
--
ComTrain Certified Tower Climber. American Tower Certified approved contractor. Wireless consultants.

Bakers

@verizon.net

Re: earthlink

Xenu laughs at Earthlink's misfortune.
Forums » New Orleans Opts To End Wi-Fi Network


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