Investor group takes over Philly WiFi network

Lynnette Luna — Tue, 17 Jun 2008 16:35:07 -0400

Philadelphia Mayor Michael Nutter and Wireless Philadelphia officially announced today that they have reached an agreement with a local investor group called Network Acquisition Company LLC (NAC) to take over the operations of Philadelphia's Wireless Initiative. Under the terms of the agreement, NAC will assume operation of the existing EarthLink infrastructure and will expand the network as part of their plan to eventually bring free wireless to the city. In May, EarthLink pulled the plug on its $17 million municipal WiFi network in Philadelphia after failing to reach an agreement with the city to take over the network.

Rick Rasansky, local entrepreneur and co-founder of the Mid-Atlantic chapter of global wireless networking group Mobile Monday, co-founded NAC and led this transaction on behalf of the investor group. Rasansky worked with City Councilman Bill Green, the Mayor's Office and a number of government agencies to bring the deal together within weeks.

"Greg Goldman and Derek Pew from Wireless Philadelphia spoke at the inaugural Mobile Monday Mid-Atlantic event in September 2007, so our group was already well aware of the opportunities presented by the muni-WiFi infrastructure," Rasansky said in a press release. "When EarthLink decided to cease operations, we invited Councilman Green to speak to our May meeting, where he expressed his view that free city-wide WiFi was a 'must have' for the city, the region and its residents... We felt that the unique business and community opportunities that would be made possible by ubiquitous WiFi coverage in Philadelphia more than justified the additional investment needed to complete the network build, so we set out to bring together a group of local investors and businesspeople to keep the vision of Wireless Philadelphia alive."

According to Councilman Green, the efficient use of the network by the city itself could save the municipality $3 million per year in the short term and $10 million to $15 million per year in the long term. The network is 80 percent complete.

For more:
- check out Mobile Monday Mid-Atlantic

Philly gets 11th hour WiFi save

Lynnette Luna — Tue, 17 Jun 2008 12:17:36 -0400

Philadelphia's mayor is expected to announce today the 11th-hour save of the city's muni-WiFi network, which was shut down by EarthLink. According to industry analyst Craig Settles, head of Successful.com, Councilman Bill Green felt the network was a vital asset to the city so he initiated contact with potential investors back in May. Private investors structured a deal in which they are creating a company to finish and operate the network. The network will offer fee-based wired and wireless services for businesses such as the city's healthcare and college communities.

Philadelphia itself has the option to create RFPs for wireless and wired broadband services and the company will be invited along with other eligible providers to bid on the RFPs. The City could potentially become the network's largest customer. Wireless Philadelphia will have the same digital inclusion mission, though how it tackles this mission may change as a result of the new company's involvement. Basic WiFi service will be available to the general public for free wherever within Philly they can access it, but the service won't be supported by the provider or the city, Settles said.

In May, EarthLink pulled the plug on its $17 million municipal WiFi network in Philadelphia after failing to reach an agreement with the city to take over the network.

Stay tuned to FierceWireless for more on the topic.

Related stories:
No deal: EarthLink pulls plug on Philly WiFi. Philly WiFi story
How hard did EarthLink try to help its muni-WiFi customers? EarthLink editorial