City wireless network to be rescued, sources say
A group of local investors have rescued the city's trailblazing wireless network from what seemed like imminent shutdown, forming a new for-profit company that will replace Earthlink Inc. as the system's operator, according to multiple sources close to the deal.
A group of local investors have rescued the city's trailblazing wireless network from what seemed like imminent shutdown, forming a new for-profit company that will replace Earthlink Inc. as the system's operator, according to multiple sources close to the deal.
Although the details of the deal were unclear, the new company is said to be considering an advertising-based business model that would provide free Internet access wherever the network is available. Earthlink charged $20 a month for the service.
Little if any taxpayer money was used in the deal, which will be announced formally at a City Hall press conference tomorrow.
Sources said the investment group includes local businessmen Derek Pew and Mark Rupp. Pew briefly served as interim CEO of Wireless Philadelphia, the non-profit organization created by Mayor Street to bring citywide wireless to Philadelphia. A lawyer and former investment banker, Pew is now the CEO of a management investment firm called Boathouse Communications.
Rupp is a former Verizon executive with 18 years experience in telecommunications management. He is also a Boathouse principal. Rupp and Pew did not return phone calls today.
Wireless Philadelphia and Earthlink Inc. also did not return calls. Mayoral spokesman Doug Oliver declined to comment.