By almost all reports, and there were a number of them yesterday, the attempt of EarthLink, Inc. to blanket Philadelphia with affordable wireless internet service is in trouble.

City Council is openly worried the city may be forced to take over and run the new citywide wireless network - perhaps as an exclusive provider for city employees without any public access.

The reports confirmed the project is running 40 percent over budget and has missed its target date for the system build-out. EarthLink has undergone management changes and clearly no longer wants to be in the municipal wireless business.

City Council's Technology and Information Services Committee were given these reports yesterday during a hearing to determine the status of the city's Wi-Fi project. ...

The grand purpose of the city's deal with EarthLink is to bridge the digital divide - the access to the Internet many low-income households cannot afford.

In a world where the Internet is becoming key to everything from education to healthcare to jobs the ability to access and navigate the Internet is critical.

New America Foundation, a non-profit research group in Washington, D.C., issued a report yesterday titled "The Philadelphia Story: Learning from a Municipal Wireless Pioneer."

It notes EarthLink, in addition to the above problems, has had trouble attracting customers. Councilman Frank Rizzo speculated the customer number was approximately 3,000.

"If I was CEO of a $20 million investment with less than 3,000 customers I'd be worried," he noted. "Their reputation is not good."

The New America Foundation report surmises, "Given the substantial history of telecom incumbents not delivering what they promised, residents remain understandably skeptical of private providers." ...

For the complete article, please follow this link. New America's report was released at an event in Philadelphia on December 11.