15 June, 2005

Earthlink bids to build a city-wide wireless network for Philadelphia

From the CTIA Newswire: "According to a Dow Jones Newswire report, EarthLink has the potential to expand its markets through municipal governments, which are now eager to advance Wi-Fi access across their cities. EarthLink has struggled with losing consumers since moving away from dial-up access to faster broadband services, creating a decline in the company's dial-up business. In a search for growth, EarthLink is now focused on new technologies, including high-end services for wireless devices and Internet telephony. It has also studied alternative Internet-access technologies like service over wireless networks and power lines that could help free it from phone and cable companies. Through city governments EarthLink now has a chance to offer Internet services over large-scale alternative networks. EarthLink recently allotted 12 bids to the city of Philadelphia for a $10 million contract to build, run and maintain a city wide Wi-Fi network for residents, visitors, businesses and mobile government workers. (Source: Dow Jones Newswire)"

City-wide wireless networks make me wonder. First, there is the concern that such a network will impinge on the territory of other businesses (t-mobile's starbucks venues may be none too happy with such a development). Second, who is expected to use such a network and where? In the park? On the steps of the buildilngs in downtown? Third, just how far will this network extend. Fourth, how much will it cost to maintain and how will it pay for that?

Many companies that have tried to make a business out of wireless access offerings have had a hard time doing so. Especially in places that do not afford easy use of devices that can exploit such a network (i.e. coffee-shops work, public phones and park-benches do not). I am curious how the city of Philadelphia plans to maintain and use such a network and what kinds of returns it expects. After all, such a network can be used in households as well as on the street and in public areas, so such a service could be sold as an alternative to DSL and cable offerings, finally allowing customers to stop paying for extra services they do not wish to use (wirelines or cable TV). The question still remains, however, whether the integrity and reliability of such a network can be feasibly maintained and while earthlink maintains it, who gets the revenue?

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