EarthLink Inc. announced recently that it will review the performance of its municipal wireless Internet networks in four cities -- Philadelphia, New Orleans and California's Anaheim and Milpitas- before proceeding with similar work in other cities.
According to Kevin Dotts, EarthLink's chief financial officer, the company wishes to double-check the profitability of capital investments in such projects before accepting other offers that are flooding in. The company wants to ascertain how it can get maximum returns on its estimated annual capital expenditure of $40 million. By carefully examining its four potential markets, the company plans to arrive at a profitable strategy.
Dotts clarified however that the company would finish the projects that it has already started including-- one which involves building the nation's largest network of about 600 square miles in Houston.
Atlanta-based EarthLink has also reported a loss of $29.96 million, or 24 cents per share in the latest period.
Divya Narain is a contributing editor for TMCnet. To see more of her articles, please visit her columnist page.
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