ATLANTA, May 13 /PRNewswire-FirstCall/ -- EarthLink (Nasdaq: ELNK)
today notified its Wi-Fi customers in Philadelphia that EarthLink is
terminating its Philadelphia Wi-Fi service and that EarthLink is providing
its customers a thirty-day transition period through June 12, 2008.
After months of negotiations with the City of Philadelphia and a
non-profit organization in which EarthLink offered to transfer to either
the City or to the non-profit -- for free -- the entire $17 million Wi-Fi
network, as well as pay cash and donate new Wi-Fi equipment, the transfer
unraveled due to unresolved issues among the City, Wireless Philadelphia
and the non-profit.
"EarthLink has worked diligently for many months to transfer our Wi-Fi
network to a new owner -- at no cost," said Rolla Huff, EarthLink's
chairman and chief executive officer. "Unfortunately, our hope that we
could transfer our network to a non-profit organization that had planned to
offer free Wi-Fi throughout Philadelphia will not be realized. Since we
have exhausted our efforts to find a new owner of the network, our only
responsible alternative now is to remove our network at our cost and assist
our Wi-Fi customers with alternative ways to access the Internet."
EarthLink will continue to provide Wi-Fi service to its customers in
Philadelphia during a transition period that will end on June 12, 2008.
EarthLink will begin decommissioning the network shortly after the
transition period. EarthLink is contacting its customers in Philadelphia to
provide information about the termination of service and assist in the
transition to other EarthLink Internet access services.
EarthLink has also filed today a proceeding in federal court seeking a
declaration that EarthLink may remove its equipment from the City's street
lights and that EarthLink's total potential liability may not exceed $1
EarthLink reclassified its municipal Wi-Fi assets to discontinued
operations in the third quarter of 2007. EarthLink expects these actions
will have no material impact to its current financial guidance.
"EarthLink. We revolve around you(TM)." As the nation's next generation
Internet service provider, Atlanta-based EarthLink has earned an
award-winning reputation for outstanding customer service and its suite of
online products and services. EarthLink offers what every user should
expect from their Internet experience: high-quality connectivity, minimal
online intrusions and customizable features. Whether it's dial-up,
high-speed, voice, web hosting, wireless or "EarthLink Extras" like home
networking or security, EarthLink connects people to the power and
possibilities of the Internet. Learn more
about EarthLink by calling (800) EARTHLINK or visiting EarthLink's Web
site at www.EarthLink.net
Safe Harbor Statement
Certain of the statements contained in this presentation are
forward-looking statements (rather than historical facts) that are subject
to risks and uncertainties that could cause actual results to differ
materially from those described. With respect to such forward-looking
statements, the Company seeks the protections afforded by the Private
Securities Litigation Reform Act of 1995. These risks include a variety of
factors, including competitive and regulatory developments and risk factors
listed from time to time in the Company's SEC reports. The lists in the
Company's SEC filings are intended to identify certain of the principal
factors that could cause actual results to differ materially from those
described in the forward-looking statements included elsewhere herein.
These factors are not intended to represent a complete list of all risks
and uncertainties inherent in the Company's business, and should be read in
conjunction with the more detailed cautionary statements and risk factors
included elsewhere in the Company's most recent filings with the SEC.