Wi-Fi Wondering: Is A Deal With Local Investors In The Works?

Wireless Philadelphia CEO Greg Goldman this afternoon confirmed reports that a group of local investors is talking with the city about assuming control of the network built by EarthLink that broadcasts Internet service to about 80 percent of the city.  EarthLink is willing to give away the network, which it values at $17 million, just to be free of its 10-year contract with the city.

As first reported in Philadelphia Weekly yesterday and then today by KWY Newsradio, the names of the local investors have not been released.  Nutter's spokesman, Doug Oliver, on Tuesday confirmed that discussions were ongoing but declined to elaborate.  Oliver this afternoon said he is still "not at liberty to confirm [or deny] any specifics related to the discussions."

EarthLink asked a federal judge last month for permission to start dismantling the network today.  Goldman said he hopes the city can make EarthLink's deadline a "non-issue" by sealing a deal.  "There's a group of local investors that have been in dialog about this," he said. "We're definitely hopeful that we'll be able to pull something together here."

While EarthLink set today as the deadline, it didn't object on May 30 when the city the federal judge for more time to answer the company's lawsuit.  The judge gave the city until Monday to file its reply.  It's unclear if the company, which hasn't been responding to PhillyClout calls or e-mails, would hold off on any action until Monday.