Does EarthLink want out?

Looks like EarthLink might be getting some cold feet over the WiFi deal they've inked with the City of Houston.

Months after the City Council approved a contract to allow EarthLink Inc. to blanket Houston with a wireless network, the build-out still has not begun.

The delay is prompting concern that the company, which publicly has said it is rethinking its business model, may be having doubts about whether to proceed in Houston as planned.

Mayor Bill White acknowledged Friday that the company is two or three months behind schedule. But he said EarthLink is obligated under contract to build the network within a certain time, so if there are significant delays Houston would receive compensation.

"I would intend to either wrap something up within a fairly short period of time -- probably a matter of weeks, not months -- or proceed with our legal remedies against the company," White said.

He said he has been working with EarthLink officials to find a mutually beneficial solution.

Options include the city paying more, and trying to sell to businesses instead of consumers. We know that EarthLink has been rethinking its business model for city WiFi services. Dwight had a link to a Business Week article on the topic that nonetheless had some good news from Houston's perspective. I think we probably won't end up with what we thought we were going to get originally, but I don't think EarthLink is going to try to get out of this. I still think the idea makes sense, and I hope everything gets ironed out.

Posted by Charles Kuffner on August 18, 2007 to Technology, science, and math