Street Upbeat on City's Wi-Fi Effort

Aug 30, 10:20 AM

Current Headlines: By Dwight Ott, The Philadelphia Inquirer

Aug. 30--The city's Wireless Philadelphia initiative is continuing to "move full steam ahead" despite a major restructuring and layoffs announced by its partner, Atlanta-based EarthLink Corp., Mayor Street told reporters yesterday.

The mayor's statement came during a news conference in which he was asked about EarthLink's troubles. Later, mayoral spokesman Joe Grace explained that Street's confidence sprang from a telephone conversation he had Tuesday with EarthLink's new chief executive officer, Rolla P. Huff.

EarthLink has partnered with a local nonprofit -- Wireless Philadelphia -- to install the network, which officials said yesterday was already fully operational in more than 50 percent of the city.

Greg Goldman, Wireless Philadelphia's CEO, said that because the project was much more advanced than similar efforts in other cities, it was to EarthLink's advantage to continue to move forward.

Grace agreed.

"While they would be bound by their contract anyway, they have made it clear that one of the reasons they're staying on track is because we're pretty far ahead of other cities," Grace said.

On Tuesday, EarthLink said it would cut 900 jobs and close offices in Pennsylvania and three other states.

Like other Internet service providers with roots in dial-up access, EarthLink has sought to diversify its revenue base. The company resells some high-speed services, but phone companies have been able to offer lower prices.

EarthLink had counted on selling access to citywide wireless networks as a way to boost revenue, agreeing initially to build the networks' infrastructure.

Goldman said that infrastructure was already built and working in most of the city except the Northeast and Northwest sections.

"We're chugging ahead," Goldman said.

Subscriptions are selling at an introductory rate of $6.95 a month. The rate will likely go up to $19.95 at the end of six months, he said.

He said the project would be completed on schedule by the end of the calendar year.

EarthLink has had problems of late. Last month, it cut its revenue estimate for fiscal year 2007. And, as part of the cuts announced Tuesday, the company will close offices in Harrisburg; Orlando, Fla.; Knoxville, Tenn.; and San Francisco and "substantially reduce its presence" in Atlanta and Pasadena, Calif.

This article contains information from the Associated Press.

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