EarthLink looks to leave municipal Wi-Fi business

EarthLink Inc., Atlanta, which is building a city-wide Wi-Fi network in Philadelphia and other cities, today said it will consider "strategic alternatives" for that business, which it said is worth about $40 million.

Though it did not spell out those alternatives, the company said it will work closely with the cities that have embarked on wireless projects with it.

Once-promising municipal Wi-Fi Internet networks have stumbled amid concerns about high costs, technical glitches and disappointing subscriber numbers.

EarthLink had to pay Houston $5 million for missing deadlines, and some Philadelphia lawmakers want to call a hearing on delays and cost overruns stemming from the company's attempt to launch a wireless network here.

But Terry Phillis, Philadelphia's chief information officer, said the company is obligated to complete the network, now 75 percent finished, even if a sale occurs.

The city also has input in who buys the network, if a sale takes place, he said.