Source: EarthLink Press Release

Today, St. Petersburg came one step closer to becoming one of the first major cities in Florida to offer a citywide wireless broadband network. City Council today accepted a proposal from EarthLink (Nasdaq:ELNK) for the internet service provider to build, own and operate a 60 square mile WiFi network, at no cost to the city.

This is great news for residents, businesses and visitors in St. Petersburg," said Mayor Rick Baker. "Soon, all Internet users in our city will have the opportunity to obtain seamless, reliable and affordable wireless broadband access that will help us promote job creation, business and economic growth, and enhance the quality of life of residents and visitors to the city."

With City Council’s approval, staff can now enter into contract negotiations with EarthLink.  As stated in the company’s bid, EarthLink will build out the network at a cost of approximately $6.8 million.  Over the course of the contract, the company anticipates making a total investment of $9.3 million in the maintenance of the network, which it will recover through a monthly subscription charged to residents, businesses and other organizations or an hourly charge to occasional users.  Additional services may include free WiFi zones in public spaces such as city parks and certain free sites such as the city’s Web site, Pinellas County Schools or the St. Petersburg Area Chamber of Commerce.

"St. Petersburg is Florida’s "Sunshine City," and one of the East Coast’s premier destinations —and the citywide, wireless broadband network EarthLink will build only enhances the city’s reputation as a great place to live, work and visit," said Donald Berryman, executive vice president of EarthLink and president of the ISP’s municipal networks unit.  "The network will provide an alternative to traditional, landline-based high-speed Internet offerings and gives users a new, affordable option to stay connected while in the city."

Last year, St. Petersburg issued a request for proposals from companies interested in working with the city to develop a citywide WiFi network.  Four were received.  A team of city staff reviewed the proposals.  The city’s CIO Muslim Gadiwalla said that after a careful assessment of strengths and weaknesses, EarthLink would be the company best suited to develop the WiFi network.

Of the state’s 10 largest cities, St. Petersburg will become the first to offer a citywide wireless broadband network.  As part of its proposal, EarthLink has committed to locate its Gulf regional distribution office in St. Petersburg.

EarthLink is a market leader in the deployment of citywide, municipal wireless networks.  The company has major WiFi initiatives underway in Philadelphia, New Orleans, Alexandria, Virginia and Milpitas and Anaheim, California.  It is also finalizing agreements with the cities of Pasadena and San Francisco, California.  Earlier this week, the ISP was selected by Houston to build out the Texas city’s wireless network.

"These initiatives clearly indicate EarthLink has an experience advantage over the other companies that provided proposals," said Muslim Gadiwalla.

As part of the company’s commitment to open access, EarthLink will enable multiple providers, such as People PC, Vonage and DirecTV to offer its Internet service to consumers and businesses over its network.  For small businesses, St. Petersburg’s wireless network will also provide an alternative for broadband connectivity, such as affordable fixed wireless solutions.

Source: EarthLink Press Release

Mayor Bill White today announced that EarthLink (Nasdaq:ELNK) has been chosen by the City of Houston to build a citywide wireless broadband network, pending contract negotiations.  The selection comes following the review of five companies that submitted proposals.  EarthLink’s experience in developing systems for other cities and its plan to finance the network on the equity of its available cash reserves figured prominently in the selection.

The Wi-Fi mesh network will provide affordable, high-speed Internet access for residents of and visitors to Houston.  It will also enable municipal employees to work in the field without having to return to an office to use traditional landlines to complete their tasks.

Houston’s 600-square-mile service area will make this Wi-Fi deployment the largest in North America.

"This is a very important initiative for Houston as it will bring the consumer cost of broadband down significantly and already has," said Mayor White.  "It will provide a scarce resource to help our low-income households have access, benefiting students at home, helping telecommuters for whom childcare or transportation creates limitations, and benefiting telemedicine in the future.  Houston’s workforce will be more productive."

"Mayor White has made his goals for wireless broadband pretty clear: make City Hall more efficient and responsive and improve both the City’s business climate and residents’ quality of life," said Donald Berryman, EarthLink Executive Vice President and President of the Municipal Networks Unit.  "Our Wi-Fi networks give consumers an affordable and portable broadband Internet connection anytime, or any place, throughout the City.  We will also offer a fixed wireless solution that when compared to existing landline offerings, is faster to install and much more cost effective."

EarthLink has major initiatives under way in Philadelphia, New Orleans, Alexandria, Va., and Milpitas and Anaheim, California.  The company is also finalizing agreements with the cities of Pasadena and San Francisco, California.  These initiatives clearly indicate EarthLink has an experience advantage over the other companies that provided proposals.  Additional criterion for the project included value to the community (including soundness of the financial plan, low-income inclusion investments and wholesale rates), deployment strategy and value to city government.  City Officials spent five months evaluating the firms.

EarthLink agreed to offer a very competitive wholesale rate capped for at least the first seven years.  For up to 40,000 low-income users, EarthLink will provide a discounted rate of $10 per month or lower, depending on the competitive wholesale rate.

As part of its commitment to open access, EarthLink will enable multiple providers, such as PeoplePC, Vonage and DirecTV to offer their Internet service to consumers and businesses over its network. For small businesses, Houston’s wireless network will also provide an alternative for broadband connectivity, such as affordable fixed wireless solutions.