SACRAMENTO, Calif.—Wireless broadband provider MobilePro Corp. said it is dropping out of a deal to build a Wi-Fi network in Sacramento.
The Bethesda, Md.-based company had worked with city officials for more than a year to establish a wireless broadband network. But MobilePro pulled out of the agreement late last week, saying the city’s plan to deliver free, ad-supported wireless high-speed access is not viable.
“MobilePro does not believe that an advertising-supported business case is financially sustainable,” Chief Operating Officer Jerry Sullivan said. “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.”
Sacramento is one of about a dozen cities that last year solicited proposals for municipal Wi-Fi services. MobilePro won a competitive bid for Sacramento’s project and had established a free Wi-Fi pilot program in a downtown city park.
City officials are expected to reconsider the ad-supported model for Wi-Fi services, and the city could once again solicit proposals.
