Saturday May 24th, 2025 11:34PM

Earthlink names Rolla P. Huff as new CEO

By The Associated Press
<p>Internet service provider Earthlink Inc. on Monday named the former leader of a voice and data services company known for his willingness to cut loose unprofitable projects as its new chief executive.</p><p>Rolla P. Huff will take the reins of the Atlanta-based company at a time when it faces questions over the future of its municipal wireless Internet projects and its costly cell phone joint venture.</p><p>But Huff said he won't make any decisions about the company's future until he spends at least two months reviewing the company's businesses.</p><p>"We haven't gone through the tough work of going through every business. I want to understand the key business drivers that can create value to our shareholders," he said.</p><p>The company announced in April it will study the performance of its municipal wireless Internet networks in four cities before deciding how to move forward with similar networks elsewhere.</p><p>That April announcement came the same day the company posted a loss of about $30 million, mostly due to a ramp up in costs surrounding the Helio project, a costly joint venture with SK Telecom of South Korea. Earthlink has already committed to invest $220 million in the project and the company has said it could likely spend another $50 million in the plan.</p><p>Huff said his review of the business is focused on "getting up to speed quickly on where the business is and where the opportunities are, and getting a very focused strategy that we can articulate."</p><p>"It's all about execution. At the end of the day, I won't be judged on my plan as much as my execution," he said.</p><p>And that could be his biggest challenge, an analyst said.</p><p>"Rolla's a very smart guy, but the rap he's got with investors recently is that he's good at communicating a story to Wall Street, but not always so good at executing the story," said Donna Jaegers, a telecoms analyst with Denver-based Janco Partners.</p><p>"Obviously, Earthlink's challenge is to make these new ventures work at Helio and Wi-Fi, or to cut the cord," she said. "And the good thing about Rolla is he's not afraid to cut losses."</p><p>Huff was the CEO of Mpower Communications from 1999 to 2006 and was also the president of Frontier Corp. until it was acquired in 1999. He has worked for a range of other telecoms, including serving as chief financial officer of AT&T Wireless.</p><p>He succeeds former chief executive Garry Betty, who died in January from complications of cancer at the age of 49.</p><p>Earthlink founder Sky Dayton described Huff as the "perfect CEO to have at the helm during this very important time in Earthlink's history."</p><p>In a show of confidence in his new company, Huff also said he purchased 100,000 shares of Earthlink stock at a cost of roughly $750,000.</p><p>"I think I can get a great return on my investment," he said. "I don't put down three quarters of a million dollars trivially, but I think I'm going to get a great return."</p><p>___</p><p>On the Net:</p><p>HASH(0x2dec230)</p>
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