Earthlink finally got over the hangover and decided that municipal WiFi just wasn't working out the way they had planned. The company decided to put it's muni WiFi operations on the chopping block for a cool $40M (provided, of course, that there's an interested buyer). AT&T is also backing off on muni WiFi. After bailing on St. Louis, they've now backed away from a system in Napa CA after the PUC defined unpalatable regulations regarding antennae height.
Sprint's also feeling the wireless pinch. After nixing their high-profile partnership with Clearwire, the company hinted that it might be getting out of the WiMax business altogether. Rumors are afoot that Comcast might either partner with Sprint or buy out the company entirely in order to get into the wireless space, but such expensive talk spooks investors already unimpressed with the company's financial picture.