Local investors to run Philadelphia Wi-Fi network
A group of local investors said Tuesday they have bought Philadelphia’s wireless Internet network, a week after EarthLink Inc. gave up on the system because it failed to make a profit.
The investors said they plan to form a for-profit company that will provide businesses both wired, high-speed Internet access and wireless service. They also plan to maintain the citywide wireless network Earthlink Inc. built for $17 million and offer wireless service free to consumers.
EarthLink has pulled out of several markets, including New Orleans and San Francisco, because it couldn’t make money from Wi-Fi networks it was building.
And on Friday, MetroFi plans to pull the plug on a free, ad-supported Internet service in Portland, Ore. As had been the case in Philadelphia, neither the city nor any private company has stepped in to buy Portland’s network.
Earthlink’s service didn’t attract enough customers in Philadelphia to be financially viable because of connection problems, poor customer service and prices that weren’t much cheaper than competitive DSL services.