MetroFi shutters its service

Sue Marek — Wed, 11 Jun 2008 10:51:00 -0400

The muni-WiFi space took another hit today with news that MetroFi, a WiFi firm that provides free and premium WiFi service informed subscribers in many of its California markets that it will be shutting down its service on June 20. Subscribers are encouraged to remove the MSN SideGuide application from their computers and find another WiFi provider.

The news comes as little surprise. Just last month, MetroFi told The Wall Street Journal that it was having difficulty with the budget restrictions of municipal WiFi projects. MetroFi's biggest project, Portland, Ore., had stalled because of financial troubles. At that time, the company was hoping to sell its networks to the cities it served. If that didn't happen, the company said it would shutter its service in 30 to 60 days.

For more:
- see this San Jose Mercury News story

Related stories:
MetroFi considers sale and end to muni-WiFi projects
MetroFi wants $9M from Portland to finish WiFi

MetroFi considers sale and end to muni-WiFi projects

Lynnette Luna — Mon, 19 May 2008 00:56:24 -0400

The shake-out continues in the muni-WiFi market as MetroFi indicated it is mulling a sale and ending its muni-WiFi initiatives in the nine cities where it operates WiFi networks. Like EarthLink, MetroFi is struggling to make any money on its muni-WiFi initiatives. EarthLink last week pulled out of Philadelphia, the latest in a string of pullouts.

Lucie Poulicakos, MetroFi's vice president of operations, told The Wall Street Journal that the company couldn't navigate the budget restrictions of these municipal projects. Like EarthLink, MetroFi struggled with the free and low-cost Internet service aspect of the business. MetroFi's biggest project, Portland, Ore., has stalled because of financial troubles.

Poulicakos said the company has approached the cities it serves, which also include Aurora, Ill.; San Jose, Calif.; and other Silicon Valley towns, with plans to sell their networks to them or another party. If no buyers emerge, the company will shut down the networks in 30 to 60 days. Cities were notified earlier in the week, and were surprised.

MetroFi's business appeared on shaky ground a year ago, when the company said it would no longer offer free public WiFi in newly contracted cities that won't commit to minimum municipal service purchases.

She also said that MetroFi, based in Mountain View, Calif., is considering options for itself, including a sale to a larger company.

For more about MetroFi's muni-WiFi struggles:
- check out this article from The Wall Street Journal (sub. req.)

Metrofi

MetroFi shutters its service

MetroFi considers sale and end to muni-WiFi projects