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San Francisco pulls the plug on Google / Earthlink's citywide WiFi... for now
It looks like the people of San Francisco are going to have to wait a little bit longer before they can spam their friends with memes while sitting in the middle of Golden Gate Park. The WiFi blanket deal which would see Google and Earthlink teaming up to deliver a citywide network to the Bay-area has ground to a halt after a round of somewhat "unfriendly" statements from Earthlink concerning the plans. David Noyola, speaking on behalf of the San Francisco Board of Supervisors (which has been overseeing the project) said that the network's rollout has stalled "in the shadow of comments," made last week by Rolla Huff, the internet provider's CEO, who expressed reservations over municipal wireless deals. Breaking points in particular seem to be the city's request for changes in data speed and privacy controls, and its desire to downsize Earthlink's contract on the network from 16 years to eight (significantly reducing the company's time to earn a profit). The internet provider now claims that they are doing a "detailed review," of their business model regarding the project, which the company says will not provide "an acceptable return." Obviously a lose-lose situation for the laptop-toting citizens of the City by the Bay.
SK Telecom, EarthLink dump $200 million on Helio
As Amp'd scrambles for life and limb and Palm sees its once tight grip on the market slipping away, Helio is being rewarded with a pair of checks worth $100 million apiece. Reportedly, SK Telecom and EarthLink are set to inject a substantial amount of cash into the MVNO, as it has supposedly burned through the initial $440 million initially put forth. Recent financial results from Helio have been less than encouraging, but obviously someone up the ladder thinks it's wise to forge ahead through treacherous waters. Of course, just about anything can survive with enough funding to back it, but unless things get turned around real quick like, Helio isn't likely breathe new life into the oft neglected MVNO universe.
Helio drags Earthlink earnings down, gets more cash from SKT
Alright, we've got good news and bad news. Which do you want first? The bad, you say? Well, it seems Helio's losses in the first quarter amounted to a $29.3 million equity loss for parent Earthlink in the same timespan, which ultimately accounts for over 97 percent of Earthlink's Q1 losses -- though in the earnings report, the company still seems pretty optimistic and committed to its MVNO lovechild with Korea's SK Telecom. Speaking of SK Telecom, the good news: Helio's other corporate parent said this week that it would be injecting additional capital to help out with marketing efforts (though would maintain the same equity balance in Helio with Earthlink that it does now). Like Earthlink, SK Telecom sounds optimistic about Helio's future, saying that despite falling short of initial expectations, ARPU (average revenue per user) and subscriber count are both looking up for 2008 and 2009. Something tells us the upcoming Ocean is going to help with those efforts significantly.Read - Earnings release [Via mocoNews]Read - SK Telecom's plans
EarthLink pushes TiVo Series2 DVRs
EarthLink DSL subscribers will have a new option coming their way this spring, when the company partners up with TiVo to distribute TiVo Series2 DVRs and the TiVo service -- with a rebate on the cost of the DVR -- to new existing EarthLink customers. TiVo's been looking to branch out to new partners after its agreement with DirecTV ended, and its Comcast TiVo service won't launch until later this year. So far the services don't work together, but representatives indicated to CNET that a combination TiVo/DSL modem is a possibility, but there are "no specific plans at this time". We understand interoperable products might be a way off, but how about throwing in a newer Series3 TiVo and some additional HD features?
L.A. mayor wants muni WiFi by 2009
Antonio Villaraigosa, the mayor of Los Angeles, wants municipal WiFi in his fair city, and he seems to have the wherewithal to make it happen. Such a project, covering 498 square miles of the sprawling city, would be a massive undertaking, costing somewhere around $54-$62 million. The city will probably partner with a private provider such as Google or Earthlink to pay for and manage the installation, and should be seeking bids this fall. Villaraigosa is already forming a working group, and plans on hiring an expert to iron out the details. Aware of the certain, ahem, problems encountered in San Francisco and other places, Villaraigosa says the initiative is "not going to be a study to put on the shelf." L.A. also owns its own street light and power poles and electric utility, overcoming an obstacle with Southern California Edison, which has denied WiFi installations a place on its own poles in other California cities. Of course, there are plenty of ways that a project this massive could go wrong, but if L.A. can pull this off it'll have some quite notable bragging rights, that's for sure.[Thanks, Gary N]
Vonage inks deal with EarthLink to resell WiFi
While this deal has been brewing for some time, it looks like the deed has finally been done, as Vonage has landed a deal with EarthLink to resell wireless internet access wherever it has municipal WiFi networks already in place. EarthLink already has such services setup in places like Anaheim and New Orleans, but we can't help but mention that WiFi in some of these areas can be fetched gratis. Nevertheless, Vonage is hoping that its VoIP / wireless broadband bundle service will help it compete in the ferocious market, and has promised a "next generation Vonage WiFi phone" to go along with the newfangled service. EarthLink doesn't think selling access to its networks will cannibalize its own TrueVoice VoIP service, as it believes that service and support will still sway more customers its way than with Vonage. The deal allows Vonage to purchase internet services "wholesale" from EarthLink for three years, and it seems that Vonage will also be offering whatever hardware and software necessary to get folks up and running with the new addition without much (or any) extra cost. No word on if The 5678's will crank it up a notch to celebrate the agreement. [Warning: Read link requires subscription][Via GigaOM]
It's official: San Francisco to get free WiFi blanket courtesy of Google / EarthLink
Ah Google, where would we be without you? Instead of answering that, we'll just say that the search giant (and future world dominator?) has landed yet another smile-eliciting deal, and this time it's the San Franciscans getting the spoils. While the deal between the city of San Francisco and Google / EarthLink has been brewing for quite some time, city officials have (finally) "finalized a contract that will enable EarthLink to build a citywide wireless network and allow Google to provide free internet access." With an estimated one million or so folks to benefit from the implementation, things are looking good if you've been itching for everywhere-WiFi and happen to live in SF, and while EarthLink still plans on offering a "fee-based premium service," Google is looking out for the little guy by dishing out the free stuff. Apparently, no hard pricing figures nor rollout dates have been set just yet, but things should start moving along relatively soon if Google has anything to do with it, as a statement released by the company stated its intent to "to see the service go live as soon as possible" -- now that's what we're talking about. [Warning: PDF Link][Via CNET]
Earthlink CEO Garry Betty passes away at 49
CNET is reporting that Earthlink CEO Garry Betty died yesterday at the age of 49 as a result of complications from cancer. Betty was first diagnosed with what was reported only as a "serious form of cancer" in November, after which took a medical leave from the company he had been with since 1996, with executive vice president Mike Lunsford stepping in to fill his role. As CNET mentions, Betty's tenure at Earthlink was marked in particular by the company's push to deliver massive, citywide WiFi networks to various municipalities in the country, many of which were launched this past year. For those wishing to pay their respects, Betty's family is suggesting that a donation be made to the cancer research foundation established in Betty's name -- contact information for it is available at the link below.[Via CNET]
Earthlink's Anaheim muni WiFi getting VoIP phones
Apparently entirely unafraid of being accused of cannibalizing their own MVNO business -- at least in the fair town of Anaheim, California, anyway -- Earthlink's freshly rolled out WiFi network will take on a new charge providing wireless VoIP service, to offered on WiFi-only voice phones with calling plans between $10 and $25 per month. Of course your calling area is limited only to those portions of the Anaheim WiFi rollout currently complete (Earthlink plans to eventually have 50 square miles rolled out when the dust settles), but Earthlink VP says their test handsets are running handoffs at up to 40 miles per hour -- which you know is remarkably fast if you've ever actually driven in Southern California. Still, with wireless Skype handsets, portable Vonage adapters, and all manner of VoIP software for WiFi-enabled cellphones, it seems like the early adopter crowd Earthlink has its sights on in Anaheim might need a little more incentive to drop a couple hundred on a handset that may or may not only make calls on Earthlink's SoCal WiFi rollout.
Helio: another MVNO in trouble?
It looks like Amp'd and ESPN Mobile aren't the only MVNOs discovering that their business models may not be getting them where they want to be. An unconfirmed report out of Telecoms Korea is brewing that Helio -- chic Kickflip and all -- has managed to sign up 100 (yes, that's one hundred) subscribers since launching a couple months back. SK Telecom, which teamed up with Earthlink to form Helio, is denying the reports and insisting the true number is in the thousands, but either way they've fallen well short of projections. It looks like we now have an explanation for Helio's shockingly generous gadget trade-in program. SKT also looks to shore up Helio's lineup with as many as five new models by year end, but we have to wonder -- if 100 subs is an accurate count, is there any hope for a turnaround?UPDATE: We just got an official response from Helio about this: "This morning's report by Telecoms Korea is wholly inaccurate and does not represent Helio's membership figures." They wouldn't tell us any more than that, but they're adamant that the figures reported aren't correct.
Widget Watch: Earthlink Shopping
One of my favorite things about the web is how it enables anyone, with even the slightest bit of effort, to become an educated consumer. Whenever I make a significant purchase (new camera, phone, etc), my first stops are sites like PriceGrabber, which allow you to search for things using specific criteria such as megapixels for cameras, carrier availability for phones, or speed for computers. This helps me get an idea of what my options are. The added benefit of these sites is the fact that they provide pricing quotes from hundreds of stores around the web, as well as ratings and customer reviews for those stores. While on the topic of smart internet shopping, lets take a peek at the new Earthlink Shopping widget. While it doesn't allow for the refined searching interface that I enjoy so very much, it does make it quick and easy to check prices on things. The widget searches eBay, shopping.com, and amazon.com for your search term, and displays the results in familiar search engine form. Earthlink Shopping also displays store and product ratings when available.
EarthLink wins bid for New Orleans WiFi network
Shortly after winning approval to build a 15-square mile WIFi network in Philly, Earthlink has now gotten the go ahead to build one in New Orleans, replacing the city's free but slow city-owned network. As with the Philidelphia network, New Orleans' will extend for 15-square miles and should cost users about $20 a month for 1-megabit-per-second service, although Earthlink says a slower 300 kbs service will be available for free and without advertising while the city rebuilds. No word yet on when deployment of the mesh network will begin, but it will apparently use gear from Tropos Networks with some additional hardware from Motorola's MOTOwi4 line of products.
Auction 66 could shake up wireless industry, benefit consumers
BusinessWeek writer Olga Kharif paints an interesting portrait of the potential state of the wireless industry following the government's unprecedented sale of spectrum this summer, called Auction 66, which could see a number of new players enter the voice and data market in the not-too-distant future. Following several years of industry consolidation, highlighted by Cingular picking up AT&T and Sprint grabbing Nextel, we could soon see companies that have traditionally delivered content in other fashions -- Time Warner, MySpace-owner News Corp., or Clearwire -- offer services that compete directly with the four major carriers. Several players, including Intel-backed Clearwire, Google-backed Earthlink, and a venture between Time Warner Cable, Sprint-Nextel, Comcast, Cox, and Advance/Newhouse Communications have already expressed interest in bidding for a slice of spectrum, while other bidders, which could include a Bill Gates- and Paul Allen-backed contender, will be revealed sometime next month. Unless the established carriers snatch up all the available spectrum, which is highly unlikely, fresh blood in the industry should bode well for consumers, who will likely benefit from lower prices, more services to choose from, and less restrictions on their bandwidth usage.
City Council unanimously approves Philly WiFi
Following unanimous approval by city council, the only remaining impediment between the City of Brotherly Love and ubiquitous wireless Internet access is a signature from Mayor John Street that, given his stance on the project, seems to be just a formality. Once Street gives the go-ahead, Earthlink will begin deploying its 15-square-mile test network in parts of North and South Philly, after which point the company will have the option of backing out should they be unhappy with the results of the trial. Assuming that all goes well, the city's entire 135-square-miles should be covered by glorious, data-rich signal sometime in the third quarter of 2007, which is when Earthlink and other ISPs will begin offering $20-a-month access with 50% discounts for low-income households. Besides creating a more attractive destination for businesses and tourists, the citywide network may also help convince U.S. Olympic Committee officials to choose Philadelphia as the country's representative to battle it out with other international cities seeking to host the 2016 Games.[Via The Wireless Report]
San Francisco selects Google/Earthlink for citywide WiFi
As we expected, the GooLink WiFi partnership between Google and Earthlink was judged by a San Francisco city panel as the best candidate to blanket SF in a free-ish, citywide WiFi service. The service, which is expected to cost at least $15-mil to build, will consist of an ad-subsidized 300kbps free service or a $20/mth ad-free 1Mbps service. Of course, the two must now enter contract negotiations with the City which Earthlink is taking the lead on before any, er, wiring can begin. MetroFi came in as first runner-up meaning they'll take the crown should any lewd photos from Larry and Sergei's Stanford days be drudged-up.
