Wi-Fi deal still in works for Houston area

(8/29/07 - KTRK/HOUSTON) (KTRK) -- The Internet provider EarthLink will pay the city of Houston $5 million to buy some time to work out the details on a Wi-Fi deal throughout the city.

It was about a year and half ago when we first heard about the so-called Wi-Fi bubble the city of Houston wants to build over Houston, providing citizens an affordable Internet access.

Last year, the city did agree to give EarthLink the contract, provided the company would build this Wi-Fi bubble over a period of 24 months with some very stringent deadlines.

EarthLink has had some problems since making the initial agreement. First of all, the company's CEO who agreed to the deal died earlier this year. Since then, a new CEO has come in. The company had to restructure its entire business model and just yesterday, the company announced that it will lay off 900 employees around the country. As a result of the changes within the company, EarthLink has missed some deadlines with the city of Houston.

But because the contract was so tight when they first signed it, the company has agreed to pay the city $5 million to buy a window of time to figure out what to do next.

"If somebody comes up with a proposal to create a Wi-Fi bubble over the city at any time in the next nine months, we would be free to take them up on the offer and do that," said Houston Mayor Bill White.

During the nine months, the city and the company will take that time will figure out exactly what they can do and if this Wi-Fi project in its current state can actually go forward.
(Copyright © 2007, KTRK-TV)

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