Local investors poised to assume control of Philadelphia Wi-Fi network: The Philadelphia Inquirer says two local businessmen will form a new company to create a for-profit service that will have a combination of fees and advertising support. One of the two was briefly the head of the non-profit Wireless Philadelphia that technically is responsible for the network; the other, a former Verizon executive. Their announcement is expected later today.

Can they succeed where EarthLink (and others) failed? Possibly. If they get the same deal that EarthLink previously offered, they're getting a lot of equipment for free and a quantifiable set of problems. I had written earlier it wasn't a good deal for Phila. to accept the network, but a private operator that's locally based and is trying to do good and get a return on its investment may be able to raise money and set more modest goals. Starting from scratch is a non-starter for any firm at this point.

What they desperately need to do if they acquire the network is immediately bulk out several critical square miles, convince the city to buy some service right away (point-to-point dedicated connections to replace wirelines comes to mind, but will an ex-Verizoner be able to convert municipal revenue that's going to his old employer without qualms?), and show that the network can work.

The advertising part is interesting. MetroFi has shown that their particular flavor of ad-supported Wi-Fi doesn't work. But their goal wasn't crossing a digital divide, and the Portland, Ore., network was never given high marks by local users as to its robustness and reach.