EarthLink Unplugs WiFi Unit

The municipal wireless venture gets "trategic alternatives" review.
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EarthLink

(ELNK)

pulls the plug on its city WiFi networking business.

The Atlanta Internet service provider says it is considering "strategic alternatives" for its municipal wireless venture.

"After thorough review and analysis of our municipal wireless business we have decided that making significant further investments in this business could be inconsistent with our objective of maximizing shareholder value," CEO Rolla Huff said in a press release Friday,

EarthLink jumped into the city WiFi business two years ago when it won a contract to build a wireless broadband network in Philadelphia. EarthLink also provided networks in four other cities including New Orleans and Milpitas, Calif.

The company says the business is valued at about $40 million on its books.

EarthLink shares rose a nickel to $7.32 in after-hours trading Friday.