EarthLink VoIP weathers storm

VoIP has turned out to be a bright spot for EarthLink, the embattled Atlanta Internet service provider. VoIP services offset the company's falling revenues last quarter. EarthLink, one of the earlier dial-up ISPs, said it lost 1 million subscribers over the last year, down from 5.3 million in June 2006. The company reported a $16.3 million net loss in the most recent quarter, but indicated it was offset by increases in VoIP revenue.

EarthLink launched free VoIP in 2004, and started offering its trueVoice commercial VoIP service the following year. It partnered with Covad Communications of San Jose, Calif., in 2006 with an investment of $50 million to build out its own DSL and Home Phone Service Network, now available in 12 U.S. markets with a footprint of 12 million households. Total subscriber numbers for the service were unavailable, nor did EarthLink break out voice revenues in its second quarter report.

The rest of EarthLink's operations aren't going quite as smoothly. The ISP owes the city of Houston $5 million for missing its first deadline in a wireless network build-out in the city, the Houston Chronicle reports. The Atlanta-based Internet service provider was unable to sign a deal with the local power company to lease utility poles for the project, according to the article. It now has nine months to start the project, even as the City is being courted by other potential vendors. The missed deadline coincided with the news that EarthLink laid off nearly half of its staff, including the executive in charge of municipal networks.

For more:
- The Houston Chronicle story is here

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