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story category Philly Wi-Fi Network May Survive After All
New deal to be announced today....
08:49AM Tuesday Jun 17 2008 by Karl Bode
tags: business · municipal · wireless
After Earthlink pulled out of the muni-fi business, the company couldn't find anyone to buy the network in Philadelphia. It appeared the project would be shuttered. But according to the Philadelphia Daily News, a deal to save the network is expected to be announced later today. According to the Philadelphia Inquirer, the network is being purchased by several local investors who will be creating a new, for-profit company to replace Earthlink.

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Forums » Philly Wi-Fi Network May Survive After All
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pnh102
Reptiles Are Cuddly And Pretty
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join:2002-05-02
Mount Airy, MD

Expensive Albatross

Heh... how much is this bailout going to cost the taxpayers?

And yes, since it is Philadelphia, it will cost the taxpayers. It always has, and it always does.
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hottboiinnc
Kyle

join:2003-10-15
Toledo, OH

Re: Expensive Albatross

How do you claim its going to cost tax payers. Non-profits receive NO government money.

pnh102
Reptiles Are Cuddly And Pretty
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Mount Airy, MD

Re: Expensive Albatross

said by hottboiinnc See Profile :

How do you claim its going to cost tax payers. Non-profits receive NO government money.
Heh... go live in metro Philadelphia for a little more than a decade and you'll see how things like that work there. I sure do miss the cheesesteaks... but the overt corruption was also fun to watch.
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Backspace
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said by hottboiinnc See Profile :

How do you claim its going to cost tax payers. Non-profits receive NO government money.
In Philly, there are different rules for non profits. The people who run them get immunity.

»www.philly.com/philly/hp/news_up···fit.html
quote:
Posted on Tue, Jun. 17, 2008

D.A. clears Phila. councilman of ‘illegal’ actions as head of a non-profit

By Jeff Shields and Marcia Gelbart

INQUIRER STAFF WRITERS

District Attorney Lynne M. Abraham cleared City Councilman Curtis Jones Jr. of any "illegal or unethical" activities in his former job as head of a non-profit agency, saying allegations by the city's former Inspector General were made "without any foundation in fact."

Abraham said she investigated accusations against Jones by former Inspector General Seth Williams, a political rival who challenged Abraham unsuccessfully in the 2005 Democratic primary,

In July 2007 Williams sent Abraham a report detailing "possible criminal conduct" by Jones during his 14-year tenure with Philadelphia Commercial Development Corporation, a quasi-public agency focused on economic development.

Williams alleged that Jones mishandled a $700,000 contract for surveillance cameras, received an improper $31,000 severance package, and was improperly allowed use of his company car after leaving PCDC. Abraham said accusations were "without any foundation in fact" and suggested that Williams' very-public investigation of Jones would have been better done without leaks "and saved the reputation of Mr. Jones."

beerbum
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said by pnh102 See Profile :

Heh... how much is this bailout going to cost the taxpayers?

And yes, since it is Philadelphia, it will cost the taxpayers. It always has, and it always does.
don't worry, Governor "Cheese Steak" Eddie will find a way for the entire state to shoulder any costs..
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TK Junk Mail
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Margate City, NJ
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Who are the suckers in this investment company?

Other than the 2 identified big shots, I wonder what other suckers were roped in to this mis-adventure?

The following is the only thing that may save these people money:
EarthLink, which values the network equipment at about $17 million, has offered to turn it over to a new owner for free in a bid to get out of its contract.
If they get the equipment and try to run it for a couple months and then wisely fold the venture, maybe they can then selloff the equipment for a portion of the $17 million.
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hottboiinnc
Kyle

join:2003-10-15
Toledo, OH

Re: Who are the suckers in this investment company?

non-profits are not allowed to make a profit of any type. They'd have to give the equipment away for free. And since they are investors they'd have to take a lose on what ever they put in. TK you should know that.

TK Junk Mail
Go ahead, make my day
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Re: Who are the suckers in this investment company?

said by hottboiinnc See Profile :

non-profits are not allowed to make a profit of any type. They'd have to give the equipment away for free. And since they are investors they'd have to take a lose on what ever they put in. TK you should know that.
I do. The new company is a FOR PROFIT company. The non-profit company you are thinking of is Wireless Philadelphia, which would no longer be involved if this deal goes forward.
»www.tradingmarkets.com/.site/new···1689809/
A group of local investors will rescue the city's trailblazing wireless network from what seemed like imminent shutdown, with a new for-profit company that will replace Earthlink Inc. as the system's operator, according to multiple sources close to the deal.

Though it remains to be seen if the new company can turn a profit, its business model is not at all like Earthlink's. In addition to advertising income, the company is likely to pursue paying institutional subscribers such as hospitals and universities. Those institutions could extend their own secure internal networks into the city over the wireless system, for a price.

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wifi4milez
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join:2004-08-07
New York, NY
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said by TK Junk Mail See Profile :

Other than the 2 identified big shots, I wonder what other suckers were roped in to this mis-adventure?

The following is the only thing that may save these people money:
EarthLink, which values the network equipment at about $17 million, has offered to turn it over to a new owner for free in a bid to get out of its contract.
If they get the equipment and try to run it for a couple months and then wisely fold the venture, maybe they can then selloff the equipment for a portion of the $17 million.
You are right. Unless they plan on somehow keeping/selling the equipment, there is no way this will be a profitable venture. Ad supported??? Metrofi had the same idea, and they just went under. Yawn, another nail in the coffin for metro wifi service.
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patcat88

join:2002-04-05
Jamaica, NY

said by TK Junk Mail See Profile :

If they get the equipment and try to run it for a couple months and then wisely fold the venture, maybe they can then selloff the equipment for a portion of the $17 million.
Yep, you hit the nail on the head. Wireless Philadephia is still in the picture, and the contract still hasn't changed, which means post-Earthlink owner will die soon too. If the financial terms havn't changed, then why shouldn't post-earthlink owner die? Since post-Earthlink owner will be a for-profit entity, I smell junk bonds in the air.

»wirelessphiladelphia.org/blog_de···/blog/72
patcat88

join:2002-04-05
Jamaica, NY

cable tv business models dont work with wifi

I hope the "digital inclusion" tax goes to hell. And the govt better cut something (pole access fees or power costs) or give something (like muni fiber or spare capacity on city leased fiber from Verizon/Level3/etc (ever heard of QOS and VLANs?))). Isn't the whole point of muni wifi to create the network by offering special terms that only the govt can provide for the network to exist? The cable tv franchise model (which is what Philly Wifi is) doesn't work with wifi.

Is the network still running or nobody can log in, or did the wifi APs stop broadcasting completly at this point?

tshirt
Premium
join:2004-07-11
Snohomish, WA

Re: cable tv business models dont work with wifi

Hmm. you don't like "digital inclusion" because it's subsidizing the poor, but you believe the city should subsidize muni-fi to make it work for the not so poor?
Forums » Philly Wi-Fi Network May Survive After All


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