Atlanta-based EarthLink has its Wi-Fi customers in Philadelphia to switch over to other networks before June 12 of this year as it is pulling the plug on its Wi-Fi service there.

 

The Internet service provider is shutting down the $17 million network as it found no buyer for the network even after it offered a throw away price.

 

EarthLink, which has 5,942 subscribers in Philadelphia, is reportedly incurring a loss of $200,000 every month and its subscriber fees are not covering even less than half of the operational costs it said.

 

Surprisingly, no one came forward to take over when EarthLink offered to give $1 million in cash and donate Wi-Fi equipment.

 

EarthLink, which successfully transferred the ownership of its Wi-Fi networks in Corpus Christi, Texas, and Milpitas, California to respective cities, was negotiating a similar deal in Philadelphia.

 

EarthLink switched to municipal Wi-Fi networks following rapid declines in its dial-up Internet access business.

 

Month long discussions failed to reach any agreement, forcing the Internet service provider to make its last decision – shutting down the network once and for all.

 

 “EarthLink reclassified its municipal Wi-Fi assets to discontinued operations in the third quarter of 2007. EarthLink expects these actions will have no material impact to its current financial guidance,” the Atlanta-based company said in a statement.

 

City officials refused to take over the network saying it would cost taxpayers millions of dollars each year to operate the network.

 

"EarthLink has worked diligently for many months to transfer our Wi-Fi network to a new owner - at no cost," said Rolla Huff, EarthLink's chairman and chief executive officer.

 

EarthLink said its effort to look for a new owner were “exhausted”, leaving the company with no option but to remove the network at its own cost and assist customers with alternative ways to access the Internet.

 

The company has also announced that it sued the city in U.S. District Court seeking to remove its Wi-Fi equipment from streetlights and cap its liability at $1 million.