Ouch.

Wifi Network News is reporting that Earthlink is withdrawing from its bid to build out San Francisco’s municipal wireless initiative.

More from the San Francisco Chronicle:

Ballard said Wednesday that although the joint deal with Google and Earthlink is now history, the city would regroup and issue a second round of proposals from interested vendors. Officials hope Google, which “has been a valuable partner throughout all this,” will want to participate, he said.