Earthlink Wins New Orleans WiFi Deal, BellSouth Freakout in 5...4...3...

from the you-can't-do-that dept

Fri, May 26th 2006 9:57am — Carlo Longino

The story of muni WiFi in New Orleans has been a juicy one. BellSouth's lobbying machine was in high gear in Louisiana, getting a law passed saying that any municipal WiFi network couldn't operate at speeds above 128kbps. When the city dared operate a network at higher speeds in the wake of Hurricane Katrina to assist relief efforts and provide some telecom infrastructure when private companies -- like BellSouth -- couldn't, the company allegedly withdrew the offer it had made to the city to donate a damaged building to house police headquarters. A few months ago, BellSouth lobbied to get the network shut down completely, saying it was illegal under the state law, though city officials refused to comply. Now, Earthlink says it's been awarded a deal build a citywide network in New Orleans, and plans to offer a free 300kbps network alongside paid services of 1Mbps. BellSouth and its cabal will probably react negatively to this network, and try to fight it -- but they'll soon realize that most of these "municipal" WiFi networks really aren't municipal at all. Private companies build, own and operate them, while localities' only contribution, typically, is to allow access to lampposts, utility poles and the like. If BellSouth has such a strong interest in this market, it was welcome to bid for the contract like any other company. Of course, that would require it to compete, when it would rather spend its resources trying to get the competition shut down by laws and regulations instead of taking it on in the marketplace.

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13 Comments

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Ben, 26 May 2006 @ 10:49am

who would want to do that
why would they want to compete when they can get a monopoly? Sounds like polotitions are finally doing something for the people.
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Ben, 26 May 2006 @ 10:50am

who would want to do that
why would they want to compete when they can get a monopoly? Sounds like polotitions are finally doing something for the people.
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- Jonathon, 26 May 2006 @ 11:01am
  
  who would want to reply once either?
  Anyone know what the 1Mbps connection will cost? Basically how will it compare to a similar Bellsouth offering?
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Michael @ SEO G, 26 May 2006 @ 11:22am

Beginning of the End
This is just the beginning of the end for the telco. Imagine 5-20 years out when you have long throw wireless that can cover a whole city easily, with services such as Skype being preferred, normal, and more reliably services. Skype cell phones. Basically, the entire market of the telcos will begin to be cut out, so you can see why they trying to keep their business model enshrined in law. They only have so much time left before they are gone.
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Michael "TheZorch" Haney, 26 May 2006 @ 12:46pm

A Perfect Case of Screwing One's Self
This is a perfect example of a telco screwing itself over because of corporate greed. Just because they are, quote, the "Telephone Company", unquote, it does not mean that they have governmental authority. Too many times I've seem these companies and the "utilities" try to kill off competition by getting laws passed that protect their business models. In the case of Bell South they did just that with New Orleans, but its rather ironic that the same law they passed has turned around and bitten them in a rumpus. They denied the city a vital need during a major crisis because of greed and lost out on a chance to make a boat-load of money. They can scream and cry all they want to the LA state legislature all they want. All New Orleans has to do is say they don't run the network, they just gave Earthlink access to the locations to install their equipment, thus they never broke the law. I'm just rolling around on the floor its so darned funny. This is poetic justice at its finest.
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Joe the WFIGUY, 26 May 2006 @ 1:45pm

Free Access
The issue now becomes one in which Bell South will claim that they then have the right to access as well as Sprint (i.e. Public space).
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Anonymous Coward, 26 May 2006 @ 2:11pm

Wait a sec...
Since did the mentality of running a business go from:

2.I'm gonna give the best service at the best price so that even if competition arises my superior service record will allow me to prevail.

to

2.Someone might try to compete with me so I'm going to get a law passed that will stop anyone from competing with me.

As a customer I would rather go with a company that goes by thought No.1. At least its is somewhat interested in serving me and not some gang of big suit share holders that just want money (like thought No.2)
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anonymous coward, 26 May 2006 @ 2:47pm

specially bothersome to Bell South if customers use Earthlink's VoIP product with that WiFi access. Save some money rebuilding your house in New Orleans and skip phone wires, you aren't going to need them.
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Drac, 26 May 2006 @ 7:20pm

Are you missing the FREE part? If you owned an auto repair shop and the city started offering free oil changes and charged for additional auto repair services you would want to yell that this service is unfair. If you can get it for free (how can a city offer it for free? Taxes or grants which are paid for by us?) You would be more inclined to buy the additional services once you were involved. I think if Bellsouth would have turned the other cheek during Katrina and voiced their concerns after it would have been a better community service.
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CB, 27 May 2006 @ 3:28pm

BIG EASY
I swear people down there get all of their stuff for free!!! Whereas working people gotta pay for the poor and themselves.. BS
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- dave, 27 May 2006 @ 3:58pm
  
  Re: BIG EASY
  Yeah. Those punks even get all the flooding they want for free too! How DARE they be allowed to swim in their living rooms!*!@#$*! OUTRAGE!$@$
  
  On a side note, I just drove through New Orleans last week. Its amazing the stark contrast between devastated areas and the downtown areas. If free wifi helps bring back the hundreds of thousands of people they will need to fill vacant jobs and recreate life somewhat similar to what it once was, by god give it to them.
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- shane, 28 May 2006 @ 7:56pm
  
  Re: BIG EASY
  it's not all free. and people are working their butts off in the city, now outside the city where people where put out to... i can't speak for that.
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dean marengi, 4 Jun 2006 @ 5:41am

Bell South
Just the 'remnants' of Ma Bell, being Ma Bell.

Monopolistic minds at work!
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