MobilePro said, in a release today, that after being declared the RFP winner and going through a lengthy permitting process, the city forwarded MobilePro a counter proposal requiring that the company establish a free high-speed wireless network supported almost exclusively by advertising revenue without the benefit of the city serving as an anchor tenant. Based on the company's successful Tempe, Ariz., model, MobilePro's original proposal provided for limited area, limited bandwidth, no-cost service but required higher bandwidth broadband users to pay a monthly fee. MobilePro also offered an alternative designed to close the "digital divide" to the city's low-income quintile of residents, which included the city serving as an anchor tenant, but this proposal was likewise rejected by the city, said MobilePro.
MobilePro President and Chief Operating Officer Jerry Sullivan said, "It is our understanding based on the final request of the city of Sacramento that the city would require MobilePro to provide free high-speed wireless Internet service to all residents and have the company rely primarily on advertising revenues for its profits and returns on investment. MobilePro does not believe that an advertising-supported business case is financially sustainable. At this time, we view such a restrictive economic model as incompatible with our original long-term plans for both the residents of Sacramento as well as the MobilePro stockholders."
