Earthlink may bow out of WiFi altogether

After cutting 900 jobs and closing several offices in August [1], Earthlink now is mulling an exit from the muni-WiFi business altogether. In a statement on Friday, CEO Rolla Huff said the company "decided that making significant further investments in this business could be inconsistent with our objective of maximizing shareholder value." Earthlink has long been looking to stem losses associated with its muni-WiFi business and its MVNO joint venture, Helio, with SK Telecom. In September, the company indicated it wouldn't invest anymore in Helio [2] for now and revealed that partner SK Telecom will invest an additional $270 million in the MVNO.

Since August, Earthlink has bailed out of a deal to provide WiFi service to San Francisco and Houston. While Cincinnati halted plans for a muni-WiFi network amid Earthlink's struggles. 

The ISP said it is looking at "strategic alternatives" (aka selling) for the WiFi division, which it said was worth about $40 million. As it considers the alternatives, the company said it would work closely with cities it already has deals with.

To read more:
- check out this article [3] from AP

Related articles:
Muni-WiFi market shakeout? Report [4] 
Earthlink drops out of SF WiFi deal Report [5]