Earthlink finally pulls out of Wireless Philly, but all is not lost

The final nail in the coffin of municipal Wi-Fi was hammered today as Earthlink pulled the plug on Philadelphia's wireless program, as the Wall Street Journal reports.

"This was about a business model that simply didn't work," said Rolla Huff, chief executive of the Atlanta-based Internet services provider. "It's very important for EarthLink to move on from this. It was a great idea. It wasn't a great business."

Wireless Philadelphia CEO Greg Goldman issued this statement in response:

Today we received an announcement that EarthLink intends to discontinue operation of its Municipal Wi-Fi Network in Philadelphia. The reason cited was that negotiations with a certain party failed to come to a positive conclusion. The transfer of the EarthLink network is by definition a complex, time-intensive, multi-party transaction. Despite today's announcement, Wireless Philadelphia and the City are still working actively together to identify alternatives for preserving this network and applying it to numerous civic, commercial and social purposes. We remain optimistic for an orderly resolution of this matter. Regardless, Wireless Philadelphia is utterly steadfast in its determination to extend internet access to all members of the community, and we intend to do everything in our power to continue the momentum generated by WP in support of Digital Inclusion.

Huff says WP serves 5,000 customers today, compared with hyperbolic claims that it would reach 100,000 urban users. While the whole advertising model was a pipe dream, it's still critically important that cities have wireless networks; but they won't get them for free – and providing free access for the poor isn't what it's all about. When I talked to Craig Settles about this last summer, he pointed out that cities like Providence RI use wireless for public safety and building inspectors. Glendale, Calif., "takes a tremendous load off the emergency room (by) remote monitoring electronically through a city network of the people who regularly use the emergency room as their primary health care provider." Tremendous ROI comes with the I, as in investment.

Cities don't want it if it's not free. That's just plain silly. Municipal networks offer significant value to a city and key constituents as an anchor tenant. To just go from one knee-jerk reaction to another is absurd.

Now, he says on his blog, cities need to better control the conversation:

From day one, the purpose of Philly’s network is to increase digital inclusion and economic development. The measure of their success should be how lives and businesses are being helped in disadvantaged communities.

In a local way, treat initiatives the way Microsoft, IBM, Palm and others treat their products. Build anticipation, set realistic expectations, educate the market. There are enemies of muni WiFi who will broadcast every flaw and scar. Cities and their supporters must drive the public discussion, not their enemies.