A group of local investors has stepped in to save Philadelphia’s Wi-Fi network, purchasing the nearly city-wide network built by EarthLink.
The group, called Network Acquisition, said it plans to offer free wireless access outdoors, while most residents will have to purchase additional equipment to access the network indoors. The group plans to underwrite the free service by selling wired and wireless services to business customers. The newly formed company also said it plans to finish building out the network, which currently covers 65% to 80% of the city.
EarthLink announced plans earlier this year to shut down the network, as the business model failed to make a profit; out of the 1.4 million residents in Philadelphia, only about 6,000 customers signed up for service. Users also reportedly complained about signal strength and lack of customer service.
Investors in Network Acquisition include technology entrepreneur Richard Rasansky, a director at equity investment firm Boathouse Communications Mark Rupp;
Derek Pew, chief executive of Boathouse and former interim CEO of Wireless Philadelphia, the nonprofit that worked with EarthLink overseeing the citywide Wi-Fi network; David Hanna, chairman of wireless Internet equipment maker Tropos Networks; and former Philadelphia mayoral candidate and businessman Tom Knox. Rupp will be CFO of the new company and Pew will be CEO. The group said they purchased the network from EarthLink, but did not disclose terms of the deal.