Wi-Fi Article Star-Trib
Taxpayers might bear part of wireless Internet cost
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http://www.startribune.com/l 06/v-printlstory/557088.html
lStarTribune.com I MINNEAPOLIS . ST. PAUL. MINNESOTA~
Last update: July 19, 2006 -7:57 AM
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Taxpayers might bear part of wireless Internet
cost
A city-run Internet service could cost 81. Louis Park $55,000 per year. Is
becoming a wireless city worth it?
Ben Steverman, Star Tribune
St. Louis Park would likely have to ask taxpayers to subsidize the city's wireless
Internet network if the City Council decides to roll it out citywide.
City reports indicate while users of the network would pay most of its costs, the
city probably would need to cover a $55,000 per year deficit.
This scenario assumes that the city signs up 36 percent of its households, or
6,800 residential customers, and 15 percent of its businesses, or about 300
business customers, for the network.
The program's financial health will be determined by how many residents and
businesses sign up for the service, which would provide fast Internet connections
through hundreds of radio transmitters deployed throughout the city.
To justify the city's cost, city staff suggest the council look at several public
benefits from the wireless network: It could spur economic development;
cheaper access to the Internet could help school children, parents and teachers
communicate; and a citywide wireless system could help city workers, especially
police, do their jobs better.
A wireless connection in police cars could allow officers to download pictures,
maps, videos and other large files while on patrol.
Most wireless network customers would pay $25 per month for an Internet
connection with a 1 megabit-per-second (Mbps) upload and download speed.
For $20 per month, residents could get a slower 128 kilobit-per-second
connection, and for $35 per month a faster 3 Mbps connection.
City officials expect a lot of the network's users would be former dial-up users
and people who now have no Internet connections.
This spring, the city tried out the city-run Internet service in four parts of town.
Based on that pilot project, a couple of reports by city staff to the City Council lay
out a variety of scenarios for starting a wireless network citywide.
The worst-case scenario is that only 25 percent of residents sign up for wireless
Internet. If so, the city could lose $2.4 million over five years.
It's possible, however, that the popularity of the service could be much higher.
By July 12, more than 2,200 households and businesses had preregistered for
the Internet service.
The City Council will meet this week to informally discuss its options. It also is
likely to discuss the issue at its Aug. 7 regular meeting.
If approved, the service could be available by next spring.
Ben Steverman · 612-673-7168
@2006 Star Tribune. All rights reserved.
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