ATLANTA—A few weeks after announcing it will shut down its municipal wireless network in New Orleans, EarthLink Inc. said Tuesday that it has notified its Wi-Fi customers in Philadelphia that it is terminating that network, too.
The company said it is providing customers in the area with service through a 30-day transition period that ends June 12. It is getting in touch with these customers to give them information about the termination and help move them to other EarthLink Internet services.
The local network was one of five rolled out by Earthlink in 2006 and 2007.
Since deciding earlier this year to get out of the municipal wireless business, Earthlink has reached agreements with the cities of Corpus Christi, Texas, and Milpitas, Calif., which are taking over ownership of their networks.
EarthLink said the decision to shut the Philadelphia network followed months of negotiations with the city and a nonprofit organization, under which EarthLink had offered to transfer the network to the city or organization for free. The company had also offered to pay an unspecified amount of cash and donate new Wi-Fi equipment.
EarthLink also said it filed a proceeding in federal court Tuesday seeking a declaration that it can remove its equipment from Philadelphia street lights and that its total liability may not total more than $1 million.
EarthLink reclassified its municipal Wi-Fi assets as discontinued operations in the third quarter of 2007. The company does not think the shutdown of the Philadelphia network will materially affect its current financial outlook.
EarthLink shares fell 17 cents to $9.07.
