On March 6, 2006, St. Cloud, Fla. launched a city-wide wireless network owned by the city government, available to its residents free of charge.

Funding: The annual $600,000 spent on the operation of the network is funded from the government's tax base, but the initial startup cost of $2.5 million came from a separate Economic Development Fund that the city could not use for any other project. The network is financed from the savings the city receives through supplying its municipal and public safety employees with free broadband access. Since the productivity of current employees is predicted to increase as a result, the city also expects to save on labor costs.

Management: The City of St. Cloud's IT department regularly services and upgrades the network's physical infrastructure, and the government contracted with Hewlett Packard for customer service and technical support. Marketing Resources, Inc. was hired to develop a business model specific to the city's resources and needs and to oversee the project's development.

Coverage: The wireless cloud reaches all 15 square-miles of the city of 30,000 residents. About 1,500 users sign onto the network each day, and 12,000 households are subscribed. Coverage is designed for both indoor and outdoor use. If residents encounter problems with indoor signal strength, the city recommends the use of wireless bridges, available online or through local vendors, to rebroadcast signals within buildings.

Quality of service: The St. Cloud Cyber Spot has had tremendous success, attracting 77% of its residents to use the network 6 months after its launch date. In January 2007, consulting firm Novarum rated St. Cloud's wireless #1 in the nation for 100% service availability. The Cyber Spot beat out big-money competitors like Sprint, Cingular, and Verizon. Coverage is so reliable that some residents have decided to cancel their wired broadband service at home, and are using the Cyber Spot for free.

State laws: Florida requires all municipalities that are considering the deployment of broadband networks to hold public hearings each year during the construction of the network. In these hearings, the city must present its business model to the community and discuss its progress. Revenues from the network must cover its operating costs within four years, or the city must hold a public hearing to discuss the network's future. However, state statute exempts municipal networks that offer free broadband service, like the network in St. Cloud, from having to comply with this law.

About St. Cloud: St. Cloud is a town of 30,000 residents in Western Florida. According to a 2004 report, the median age of its population is between 45 and 54, and the most recent census data from 1999 puts the city's median household income around $36,000.

Additional information: Find out more about the St. Cloud wireless network:

• St. Cloud Cyber Spot website
• Cyber Spot FAQ
• 77% Have Registered for Muni Wi-Fi Service in St. Cloud
• St Cloud kicks off first free citywide Wi-Fi
• The Case for Municipal Broadband in Florida - Florida Municipal Electric Association, March 2005
• Broadband and Economic Development: A Municipal Case Study from Florida - George S. Ford and Thomas M. Koutsky