[CAnet - news] Earthlink to provide no cost WiFi network to Philadelphia

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[As expected the removal of open access on DSL and coax is forcing many ISPs
and ASPs like Earthlink and Google to look for more creative solutions such
as partnering with cities to build WiFi networks to reach their customers.
As noted in the Wall Street Journal the removal of open access requirements
may come to haunt the incumbents as organizations such as Google have
alternative product and revenue streams. They are not dependent on ownership
of the last mile infrastructure to make their money- in fact the last mile
costs is often seen as a simple loss leader in order to promote these other
services. Cross posting from Dave Farber's IPer list -- BSA]


Begin forwarded message:

From: Dewayne Hendricks 


  Update: EarthLink selected for Philadelphia Wi-Fi network EarthLink to
finance, build and manage network, then share revenue  
with Wireless Philadelphia initiative

By Grant Gross, IDG News Service
October 04, 2005
<http://www.infoworld.com/article/05/10/04/HNearthlinkwifi_1.html? 
source=rss&url=http://www.infoworld.com/article/05/10/04/ 
HNearthlinkwifi_1.html>

The city of Philadelphia has selected EarthLink to deploy a citywide  
wireless broadband network, the largest municipal Wi-Fi network in  
the U.S., the company announced Tuesday.

The Wi-Fi deployment in the U.S.' fifth largest city is expected to  
be finished by the fourth quarter of 2006, EarthLink said. EarthLink,  
a large Atlanta-based Internet service provider, will deploy a mesh  
Wi-Fi network covering 135 square miles (349 square kilometers).

Under the terms of the EarthLink proposal, no city or taxpayer  
dollars will be used to fund the project. EarthLink will finance,  
build and manage the wireless network, and share revenue with the  
city's Wireless Philadelphia initiative.

The infrastructure portion of the contract totals about $10 million,  
said Dianah Neff, the city's chief information officer and acting  
chairwoman of Wireless Philadelphia, a nonprofit group set up by the  
city. EarthLink's proposal was one of 12 the city received from  
vendors, she said.

EarthLink's proposal to pay for the cost of building the network was  
among the major reasons the city selected the provider, Neff said.  
The city's request for proposals did not require that the Wi-Fi  
vendor pay for the cost of building the network; the city had  
considering using bonds or private funding to allow Wireless  
Philadelphia to pay for construction, she said.

Philadelphia's plan to build a citywide Wi-Fi network has met  
criticism from Verizon Communications Inc., which offers DSL (Digital  
Subscriber Line) and wireless broadband service to the Philadelphia  
area. Verizon and other incumbent telecommunications carriers have  
questioned whether tax dollars should fund Internet services in  
competition with private companies and if cities understand the long- 
term costs of maintaining Wi-Fi networks.

EarthLink's funding proposal addresses those criticisms, Neff said.  
"We have believed from the beginning that the nonprofit could take on  
the [funding] risk," she said. "EarthLink stepping up and offering to  
fund this at their risk ... was very important to us."

Two other bidders proposed alternative funding arrangements, Neff said.

EarthLink's proposal also best matched Wireless Philadelphia's goals  
of strengthening the city's economy and improving its neighborhoods  
by providing citywide broadband access, Neff said.

[snip]

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