Minneapolis picks US Internet

The city of Minneapolis has chosen US Internet to build and operate its citywide wireless network. The decision is a blow to EarthLink, which was the other finalist participating in a trial held in July.

The Minnesota City Council voted 12-1 at its Sept. 1 meeting to authorize a 10-year contract with Minnetonka-based US Internet for the wireless network, which will have the city as its anchor tenant. US Internet, an Internet access and hosting company, has said it will deploy BelAir Networks equipment to create a broadband wireless mesh network throughout the 54-square mile city.

The Minnesota contract is a significant one for US Internet. Minneapolis is one of several large cities, including Philadelphia and San Francisco, to pioneer citywide wireless, and it chose to use a public-private partnership after studying other business models. The city could become a model for other larger municipalities.

According to the city, US Internet will provide wireless Internet access that will reach 95% of outdoor locations and 90% of indoor locations, including high-rise and multi-family buildings. Residential Internet services will be available for $19.95 per month, and business services will be provided at no more than $29.95 per month. Residents who want to access the network will need a special wireless modem that can be purchased for $75 or rented for $5 a month. The city will pay $2.2 million up front and $1.25 million a year for services that will include public-safety applications, greater efficiency for mobile workers and other applications.

US Internet will also provide 24-7 technical support and pay 5% of its revenues and $500,000 up front into a Digital Inclusion Fund to help provide technology in low-income areas.

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