EarthLink backs off from big push into wireless Internet

EarthLink Inc., a major booster of blanketing cities with wireless Internet service, said Friday that it would consider “strategic alternatives” for that business.

After a review, the company “decided that making significant further investments in this business could be inconsistent with our objective of maximizing shareholder value,” Chief Executive Rolla P. Huff said.

The company said it was looking at “strategic alternatives” for the business but did not disclose what those might be. EarthLink said it would work closely with cities such as Philadelphia on its existing projects as it considers the alternatives.

Cities have been finding their projects costing more and drawing less interest from residential customers than expected, and service providers paying for them have been questioning whether the networks will generate sufficient revenue to justify the multimillion-dollar investments to build and maintain them.

EarthLink had been gradually scaling back its ambitions as it decided it could no longer afford to foot the bill by itself.

EarthLink said the business is worth about $40 million.

Shares of EarthLink rose 13 cents to $7.27 and gained an additional 85 cents in after-hours trading.