Tempe, Ariz., is now alerting citizens who ask that Kite Networks is in default of their arrangement with the city: The city's deputy CIO, Dave Heck, the point person on this issue since its inception, replies to those who ask that potential buyer Telscape has "been unable to negotiate a deal with Gobility and its creditors."
The city has declared Gobility in default of its lease agreement, and declares the network abandoned as of 28-Dec-07, which gives the city some remedies, I believe, in seizing and removing equipment from city property. Because the gear was leased, I'm not sure what happens now with creditors, the lessor, and the city. Back when Ricochet went belly up, to put it nicely, some cities were stuck with bills that ultimately ran as high as $200,000 in at least one case to remove owner Metricom's devices to free up space, reduce electrical use, and improve safety.
Heck's email notes that customers who paid for but did not receive service need to dispute the charges with their credit card company.