<![CDATA[Gawker: valleywag, earthlink]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: valleywag, earthlink]]> http://gawker.com/tag/valleywag/earthlink http://gawker.com/tag/valleywag/earthlink <![CDATA[Virgin Mobile bails out Helio]]> Virgin Mobile will acquire failed mobile virtual network operator Helio for $39 million in equity and, if the last two years are a trend, much more in costs. Founded as a joint venture between Earthlink and SK Telecom, Helio burned through $560 million in its first two years. [PaidContent]

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<![CDATA[Philadelphia's Wi-Fi network saved, for now, but the time for citywide wireless has past]]> After EarthLink abandoned a citywide Wi-Fi project for Philadelphia after only 6,000 customers signed up for the $20/mo. service. Now local investors Derek Pew of Boathouse Communications and Mark Rupp, a former Verizon executive, are planning to take over the network, which will be free and ad-supported. When first announced, the project was on of the largest Wi-Fi buildouts proposed. But after being completed, few users signed up because it was slow, didn't reach far into the city's signature row houses if at all, and was not much cheaper than adding Internet to your cable or phone connection. Earthlink had previously attempted to hand the network off an Ohio-based non-profit. But Wi-Fi was never a particularly good technology for these projects, and it's high time to abandon the pipe dream.

Philadelphia was a particularly interesting choice because it's the corporate home of Comcast. Here in San Francisco, the plan to build a citywide wireless network was initially opposed by the telco giant, along with AT&T, as the two companies feared it threatened their duopoly. Turned out they had little to be afraid of — between Comcast's influence in City Hall and villainously-coiffed God-mayor Gavin Newsom's inability to understand the political process beyond publicity, the combined powers of Google and Earthlink couldn't get anything done (and publicly mocking political opposition certainly didn't help).

Wi-Fi is simply bad technology for large-scale wireless connectivity. The microwave spectrum the technology uses can't cover large distances omni-directionally, and everything from humidity to trees interrupt the signal. And those problems are compounded by the difficulty in building a network infrastructure to feed all those access points with enough bandwidth to satsify thousands of users at any given time. Again, expanding fiber optic networks makes much more sense, because a bunch of wireless routers in a mesh network does you no good unless they can actually connect to an Internet backbone at dozens if not hundreds of points.

Having lived in the Bay Area since the turn of the century, I've actually noticed a decrease in Wi-Fi availability, mostly thanks to individuals who've started to lock down their access points and businesses that have tired of freeloaders. By the time Philadelphia and San Francisco were busy trying to build out citywide systems, the 802.11n Wi-Fi standard was already getting old, while cell network provides were introducing 3G data connections. Politics doomed such projects from the start, and now obsolescence will finish them.

What was once the technological pride of Phildelphia is now a failed dream on its last legs. Meanwhile, I can't get a fiber optic connection if I wanted one (and I do, desperately). Had we been listening to San Francisco Supervisor Tom Ammiano instead of mayor Newsom years ago, maybe San Franciscans would be getting the true broadband speeds countries in Asia and Europe enjoy. (Photo by Bob Jagendorf)

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<![CDATA[EarthLink tries to unwireless Philadelphia]]> No one wants EarthLink's Philadelphia Wi-Fi network, first announced four years ago — not the city, not a nonprofit. EarthLink has filed a federal lawsuit to remove its equipment from street lights and limit its liability to $1 million; it plans to shut down the network on June 12. [CNBC]

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<![CDATA["Google Me" documentary an irony-free, feel-good flick with literal cult appeal]]> Jim Killeen, former bit-actor and current small businessman, decided to turn the typical act of searching for other people with his same name on Google into the premise for a documentary — Google Me. He tracked down a number of other Jim Killeens around the world, from Australia to Ireland, and spent some time to get to know them and ask them a few questions. The result is an hour and a half of "gee whiz" encounters and white male bonding. See Jim meet Jim! And Jim! And Jim! See Jim get grossed out by vegemite and haggis! See Jim uncomfortable as the particulars of a swingers party are explained! You can watch it all for free on YouTube. But what was the most interesting thing about the film?



It wasn't the interview with now-former CIO Douglas Merrill, which served to convince me that the Canadian-nice Merrill will get eaten alive by the music industry. It wasn't the moment when Jim Killeen of Cobe, Ireland, a Catholic priest, argues the Pope's position on human sexuality with Jim Killeen of Denver, Colorado, the swinger and self-described "tranny chaser."

It was a few minutes into the film when noted Scientologist and Earthlink founder Sky Dayton makes an incongruous appearance to muse on the business of moving bits. Later on, the filmmaker Killeen intereviews his schizophrenic brother and sister about their experiences with psychiatrists and the medications they're currently taking, proclaiming that he feels they'd be better off without psychiatric care. Finally he declares on camera that he's a Scientologist, confirming my suspicions based on Dayton's appearance and the anti-psychiatry agitprop.

But that's just a side note in a watchable and somewhat entertaining but otherwise forgettable documentary. The best moments are the man-on-the-street interviews where people from around the world describe their own experiences running a vanity search for their name on Google. But it doesn't succeed on the same, earnest level that 24 Hours on Craigslist did, probably because what it has in geographic scope it lacks in range of characters as subjects.

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<![CDATA[EarthLink's choice: just fade away]]> Leaving markets in a HuffRolla Huff, the CEO of Internet service provider EarthLink, has made a choice many in Silicon Valley find incomprehensible: He's no longer bothering to get new customers. Here, the moment you stop growing — no, the very second your momentum falters — you're instantly written off. But the reason why EarthLink swung to a $54 million profit in its first quarter was simple. Its new dial-up customers — yes, people are still signing up for dial-up — simply weren't worth its while, and EarthLink stopped spending money to market service to them. Huff has also pulled the company out of the municipal Wi-Fi market, selling some networks to city governments and shuttering others. He's similarly disentangling the company from its Helio cell-phone joint venture, a half-billion-dollar fiasco. All of that doesn't leave EarthLink with much of a future.

Yet the cost of dial-up continues to shrink, which means EarthLink can continue to squeeze its current customers for healthy profits, possibly for some time to come. It's not innovative, not sexy. It's not why founder Sky Dayton started the company; it's not a business plan anyone from the Valley would propose, or a job an engineer here would sign up for. SoMa Web designers are offended by the notion that anyone's still accessing their sites through a 56-Kbps modem. EarthLink is not following the set pattern: Set the world on fire, or flame out fast. For the Valley's groupthinkers, the fact that EarthLink still exists, collecting monthly checks, is an idea that must burn.

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<![CDATA[Brewster Kahle's Internet Archive brings broadband to SF housing projects]]> Mayor Gavin Newsom's office tried to garner good press by selling his efforts to bring free Wi-Fi to San Francisco as an effort to bring broadband to the poor, under the auspices of Project Tech Connect. Commercial partners Google and EarthLink just wanted to sell location-targeted ads with a franchise agreement to shut out competitors. Now Brewster Kahle's nonprofit Internet Archive has done what Newsom, Google and EarthLink couldn't. No, not hold yet another press conference. Kahle actually brought 100-megabit-per-second broadband to low-income households.

The secret? Piggybacking on the existing, municipally owned fiber-optic infrastructure and connecting to the Internet backbone through the Internet Archive's switches. Yes, the same municipal infrastructure that Google openly mocked last April. Three cheers for actual altruism, and not profit-seeking self-interest marketed as altruism! (Photo by AP/Ben Margot)

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<![CDATA[Monster, Palm and three other tech companies own $856 million in paper no one wants to buy]]> AuctionRateBarGraph.jpgInstead of holding onto cash, tech firms such as Monster, Palm, Intuit, EarthLink and MetroPCS in recent years bought something called auction-rate securities. Basically — very basically — that means these companies loaned out around $856 million because banks told them they'd earn more than they would just holding on to the cash. Only thing is now, with the credit markets being what they are — crappy — no one else wants to buy the rights to collect on those loans. So all that cash is sewn up in paper. That could soon hurt because the companies are going to need that cash eventually, an exec at one Wall Street trading firm told the WSJ. And when they do, he said, they should expect "a steep loss."

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<![CDATA[Goldman Sachs is now 10 percent less impressed with Internet]]> Citing a more challenging consumer environment, greater customer-acquisition costs and investor reluctance to pay above-market prices for shares, Goldman Sachs today cut price targets for Internet stocks including Google, eBay, and Amazon by 10 percent. For more reasons why Wall Street is suddenly less impressed with your tech stock portfolio, see Goldman's entire report, embedded here:

Read this doc on Scribd: Goldman downgrades tech
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<![CDATA[CFO and three VPs depart Helio, chairman to follow]]> Sky_Dayton.gifHelio CFO Todd Tappin and execs Michael Zemetra, Terry Boyle and Kieran Hannon will leave the company by March 31. A source tells us former CEO and current chairman Sky Dayton won't remain long, either. The cell-phone carrier started as a joint venture in 2006 between EarthLink, the Internet service provider founded by Dayton, and South Korean phone company SK Telecom. Since then, it has disappointed, and EarthLink ran short on cash to invest. When SK Telecom reupped with another $270 million last fall, reducing EarthLink's share to 22 percent, this kind of shakeout was expected. In fact, our source tells us most if not all executives from the "EarthLink side of the house" will depart the company on or before March 31.

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<![CDATA[EarthLink bails out of providing Wi-Fi to dirty hippies — and everyone else]]> EarthlinkSan Franciscans may remember EarthLink CEO Rolla Huff leaving them in the lurch when he abruptly backed out of the city's municipal Wi-Fi project. Well, it turns out Huff, like any sensible CEO, doesn't want to lose money on a venture that probably will minimize shareholder value. The Internet service provider is cutting its losses and abandoning all plans to build citywide Wi-Fi networks. A shame. We thought it was just San Francisco's toxic stew of entitlement, anticapitalism, and government dysfunction that drove EarthLink away.

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<![CDATA[Sky Dayton just wants to be your friend]]> Sky DaytonCAMBRIDGE, MASS. — Could it be that Sky Dayton is feeling a little lonely? EarthLink, the company he founded, refused to participate in the latest round of financing for Helio, the upstart wireless carrier he now heads. In a keynote speech at Technology Review's EmTech conference, he touted his company's service not as, say, letting you make calls and surf the Web, but "connecting you to your community of friends." So it's a social network! Ah, but a social network that requires buying a phone (as much as $295) and signing up for service ($85 to $90 a month, on average). No wonder Dayton's ersatz social network, cleverly disguised as a cell-phone company, only counts 140,000 users, and is losing hundreds of millions of dollars. Somehow I don't think Facebook CEO Mark Zuckerberg is sweating over this one.

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<![CDATA[Sky Dayton's wireless company, Helio, as...]]> Sky Dayton's wireless company, Helio, as rumored, is getting new funding without help from co-owner EarthLink, an Internet service provider facing financial straits. Joint-venture partner SK Telecom is investing $270 million in Helio and renegotiating its agreement with EarthLink. [Reuters]

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<![CDATA[Sonic.net tries mob rule for municipal Wi-Fi]]> Meraki Mini wireless routerWith San Francisco's municipal Wi-Fi program stuck in purgatory thanks to EarthLink's budget concerns, Internet service provider Sonic.net aims to be the city's wireless savior. Not that legions of dirty hippy leechers deserve free Wi-Fi. Nonetheless, Sonic says customers can obtain a subsidized wireless mesh router and hook it up to a DSL line. Why? To create a network of wireless access points. Web surfers browsing from the wireless network will be served Google ads to subsidize their surfing. Sonic will implement a profit-sharing plan that will credit their customers' accounts. Sounds like both a cheap attempt to turn EarthLink's woes into free PR, and a blatant ripoff of Fon's business model. More power to Sonic. A plan so crass can't help but work.

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<![CDATA[Does Sky Dayton need a new sugar daddy?]]> Sky DaytonHelio, Sky Dayton's wireless-service provider, is cutting back, laying off one out of seven employees, mostly in sales. It's now concentrating efforts, the company says, on its 20 largest markets. The company only has 100,000 subscribers, and 600 employees even after the cutbacks, and is expected to lose more than $300 million this year. EarthLink, the troubled Internet service provider founded by Dayton that's one of Helio's two backers, is rumored to be looking to pull out.

A company spokesperson says EarthLink remains behind Helio. But it only makes sense that EarthLink, having just laid off 900 employees of its own, might be looking to cash out its stake in Helio by finding a buyer. That would give EarthLink some immediate cash to shore up its operations, and spare it from making further investments in Helio; having put $220 million into Helio, its expected to sink another $100 million into the wireless carrier this year.

The only problem with this rumor: Having cut back on its municipal Wi-Fi efforts, if EarthLink pulls out of Helio, too, it will have precious few growth businesses with which to tantalize investors. Dayton, of course, will have a much more pressing problem: 600 mouths to feed.

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<![CDATA[EarthLink drops the San Francisco Wi-Fi project]]> EarthLink Wi-FiFollowing yesterday's daily dose of EarthLink doom — the Internet service providerlaid off 900 employees, including municipal Wi-Fi networks president Don Berryman — the copmany has decided San Franciscans aren't worthy of free Internet after all. CEO Rolla Huff called up god-mayor Gavin Newsom to say, as a Newsom spokesman put it, "they were not going to be able to fulfill their end of the bargain." The mayor's office says it's still committed to blanketing San Francisco with Wi-Fi, and is counting on Google to remain an "anchor" while the city shops for more vendors. Newsom is also placing a measure on November's ballot asking to use public and private funds to get the network of the ground. Good luck with getting free Wi-Fi, you dirty hippies. As we've said, you don't deserve it.

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<![CDATA[EarthLink puts more than San Francisco's Wi-Fi network on hold]]> EarthLinkEarlier this month, Internet service provider EarthLink held San Francisco's proposed citywide Wi-Fi network hostage while asking the city to pony up some extra cash. Turns out that wasn't strong-arm tactics — EarthLink is in a world of financial hurt. To cauterize the bleeding, it's cutting 900 employees. Among the victims is Don Berryman, the president of municipal Wi-Fi networks. EarthLink won't be filling the position.

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<![CDATA[No free Wi-Fi for you dirty San Francisco hippies]]> Chris SaccaGoogle blunderkind Chris Sacca's plans for world domination are currently on hold. EarthLink, Google's partner in building a citywide Wi-Fi network in San Francisco, has delayed city officials' vote on the project's contract, until September, if ever. EarthLink CEO Rolla Huff is earning his last name by giving San Francisco the silent treatment. Not only has it stonewalled the city's proposal for a shortened contract and improved speed and security settings, but EarthLink now wants San Francisco to foot the bill. "The Wi-Fi business as currently constituted will not provide an acceptable return," Huff told Dow Jones. "We're going to look for municipal governments to step up and become a meaningful anchor tenant." Translation: Pony up! Of course, it has to be said: San Franciscans richly deserve this. The way we're behaving, there's no way we deserve free Wi-Fi. No wonder Chris Sacca and his partners are taking their squishy exercise balls and going home.

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<![CDATA[San Francisco, Google, Earthlink Finalize City Wide WiFi Deal]]> Google, Earthlink and the City of San Francisco have agreed to a 4-year deal to blanket the city in WiFi. Earthlink will build the $14-17 million system, and they'll earn their cash back by charging $21.95 a month for a connection boosted to 3-4 times the speed of the free service. Google will sell ads to subsidize it all. Good job, Mayor Newsom — But how are your homeless?

This agreement to bring free universal wireless internet access to San Francisco is a critical step in bridging the digital divide that separates too many communities from the enormous benefits of technology.
In response to this statement, hundreds of winos peppering the sidewalks shrug their dusty shoulders with indifference, and take steamy dumps in tenderloin alleyways. The city will reap 5% of the revenue, which projects to the sum of $300k a year.

San Francisco finalizes Wi-Fi deal with EarthLink, Google [SF Gate]

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<![CDATA[Crazy San Franciscans are fighting free Google wifi]]>

Say what you want about the Google hegemony, I'd trust them before San Franciscan landlords and neighborhood overlords any day. Reader Davis Freeberg saw San Francisco nutjobs shanghai a town meeting with Google and Earthlink, meant to bring the city one step closer to city-wide free and cheap wifi plans. He reports below, and adds more at his blog.

So I'm not really into all of the BS politics and normally stay clear of these sorts of issues, but last night I attended a town hall meeting hosted by Google and Earthlink and saw an angry mob rip apart Google and EarthLink over their proposed free WiFi initive.

Maybe I should have known that SF politics could get dirty, but for 2 hours Chris Sacca, Google's Director of Special Initives faced angry angry SF political gadflies who somehow think that Google giving away free internet access to the city will harm them.

After the jump, violence!

One crazy guy, at one point, actually started making threatening moves towards Sacca and had to be restrained when Sacca tried to tell him that his renters wouldn't need to sign special contracts if they want to plug their wireless access card into their home computers. When the guy threatened to block the wifi signals for his renters, Sacca pointed out that he couldn't block the air and the crowd went ballistic.

Political theater or political circus, I'll let you be the judge, but my money says that Google and Earthlink pull out of this deal in a year when the city still won't negotiate a reasonable agreement letting them give away free internet access to their citizens. If the deal does go through maybe the local SF nuts can use Tin Foil to help keep the free wifi signals from communicating with the microchips installed in their fillings.

More from Davis: San Francisco Local Politics Derail Free WiFi Project [Davis Freeberg]
Picture: No Wifi for you [Blaugh]

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<![CDATA[AOL, Yahoo, and Microsoft collect kiddie porn]]> Five Internet giants are pooling their resources to create the largest child porn library on Earth.

AOL, Yahoo, Microsoft, Earthlink, and the owner of NetZero and Juno pledged $1 million toward building the database — to hunt out child porn among their users. AOL, for example, plans to scan e-mails for child porn. If they find a match, they'll report the user to the authorities without a warning.

By the way, AOL's researching ways to do this with Instant Messenger.

There are four guaranteed outcomes here:

  • These four companies are about to get some padded resumes from sex offenders.
  • If the program works, the danger of owning recognizable images will create a demand for fresh kiddie porn.
  • If the Fed ever needs to shut down half the Internet, it can just arrest these companies for possession.
  • Biggest. Hacker bait. Ever.

Top Internet Providers Hope to Combat Child Porn With Image Database [Fox News]

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