EarthLink Reconsidering Muni-WiFi Business?

As embattled muni Wi-Fi steps back and re-adjusts its role in the world, it seems more and more that the public access aspect of Metro-scale Wi-Fi is seen as a bad idea, while the government operations aspect is growing to be seen as the more suitable fit. Where does that leave you if you are a public access player in this market? Well, that's exactly the question EarthLink is struggling to answer right now. The ISP is going to put future Muni Wi-Fi plans on hold as it evaluates the economics, markets, and performance of its existing four contract cities. That's not to say that Earthlink will bail on Metro Wi-Fi, but it certainly supports our thesis that these networks were over-hyped and need to be re-evaluated. The CFO, Kevin Dotts, says Earthlink is "'not yet able to establish that comfort level' that the investments are really profitable". This willingness to reconsider is one of the advantages of a private/public partnership in that governments are more likely to bluster forward with good ideas and bad alike, since they are politically motivated, and can pass the bill to you later on. Private companies, however, are the canaries in the coal mine; they will bail when the models don't make sense. Earthlink, SureWest, and Google are all good examples of companies with little vested interest in the technology - they just want a good solution. Watch the canaries.

Earthlink may well revitalize their efforts in the space, with adjustments. But I'm not sure where a (largely) consumer ISP is going to find a clear role in a Metro Wi-Fi future with government operations as the anchor subscriber.

Filed Under: wifi, wi-fi

FCC Doesn't Really Decide Much About Upcoming 700 MHz Auction

The FCC was supposed to release rules for the upcoming 700 MHz spectrum auction yesterday, but after delaying its meeting for several hours (apparently as commissioners argued in private), it didn't announce much of anything at all. The only rule announced was that it will offer licenses in a variety of geographic sizes, from local to regional, a move which allows smaller local operators to bid on licenses covering small areas. But that was about it; the Commission simply invited public comment on a host of other issues, including Frontline's proposal for a shared commercial-public safety network, as well as open-access rules and other restrictions some consumer groups have asked for. Despite all the apparent discussion during the day by commissioners, nothing much changed,. The FCC is on something of a tight schedule, since the 700 MHz auction has to be completed by the end of January, and the thought that the auction might happen as early as June now appears to be gone.

Filed Under: spectrum