EarthLink Tweaks Wi-Fi Business, Leaves Helio Alone For Now

Internet service provider EarthLink won’t take on ambitious new municipal wi-fi projects, chief executive Rolla Huff said today on a conference call with investors. EarthLink will continue to pursue muni wi-fi contracts, but only those that shield the company from extensive risk and/or costs, Huff said. Yesterday, the company announced a massive restructuring, saying it would lay off 900 employees and close regional offices.

The company had no update on its cash-burning “virtual” wireless carrier, Helio. Huff referred investors to EarthLink’s Q2 conference call, when he said the company would continue funding Helio, a joint venture with Korea’s SK Telecom, but on a tighter leash.

Huff took over in June with a primary goal of refocusing EarthLink’s business to generate cash. Growth is slowing, however, for EarthLink’s old, profitable businesses — selling broadband and dial-up Internet access — and new growth areas like muni wi-fi and Helio are expensive and risky.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In

helio mobile mvnos sai-us