City Council Chairman George Stewart is going head-to-head with Mayor Lewis Billings over a proposed million-dollar loan from the city to pay down iProvo's bond debt. While the current subscriber base makes enough to pay operating costs and sustain the network, current revenues don't quite cover the payments on the bond. As part of the loan, Mayor Billings wants to bring in additional network providers and market more aggressively to business users, a market segment with higher margins that remains untapped.
Most of the debate on financing hinges on the current projections of 60 new subscribers per week. The City Council cut a deal with the Mayor to run the numbers presuming 40 new subscribers a week and revisit the loan. Let's hope they don't make the same mistake that American Fork did by refusing to spend what was needed to ensure a final success.
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