http://q1.schwab.com/content/rb/2005/10/04/1136855.html 5:52 PM ET 10/04/05 NEW YORK, Oct 4
(Reuters) - Internet service provider EarthLink Inc. plans to build a city-wide
wireless network for Philadelphia to provide residents and businesses with
Internet access, according to the company. EarthLink will
spend about $10 million to $14 million to build the network that will include
equipment from Motorola Inc. and privately held Tropos
Networks, according to The city chose
EarthLink over Hewlett-Packard Co. , which was also
short-listed from a group of 12 companies that offered proposals for the
project. Analysts said the deal could open up a new growth opportunity for
EarthLink. "Strategically
its very important. From a financial perspective, its
not enough to move the needle in the short term," said Jefferies analyst Youssef Squali, who estimated
that at least another 20 If "This win
is much bigger than Some municipal
plans, which essentially compete with incumbent services, have created friction
with telephone and cable providers. The Mayor of San Francisco has said he was
bracing for a battle with telephone and cable companies as his city plans to
offer free or low-cost municipal services. Neff said up to
30 percent of The idea is part
of a plan to boost the City's economy by educating residents and transforming
rundown neighborhoods where sometimes there are no wires in the ground for Web
access. "We believe
that affordable access to the Internet will help us do so. To be a city of the
21st century you need to have your populace able to use Internet," Neff
said. EarthLink said
the network, which will cover 135 square miles, will be the biggest municipal
wireless project in the country when it is completed about a year from now. It will also
manage the network and is expected to recoup the costs by charging other Web
services wholesale rates to offer services using its network, according to Neff
who said EarthLink would share some revenue with the city. The service will
be based on a series of interconnected "hotspots" based on Wi-Fi, a short-range radio technology popular among laptop
computer users in public venues, such as coffee shops. About 75 percent of the
network will be wireless with some wireline backhaul
Internet links. REUTERS Cliff – Work 985-879-3219 |
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