Lexington, Ky., now has broadband wireless in its downtown area as part of a pilot program launched by SkyTel, MCI’s broadband wireless subsidiary.

SkyTel, which provides wireless data and messaging services, is trialing its UnpluggedCity service in Lexington under a cooperative agreement with the city, and will own and manage the Wi-Fi service.

"The strategic plan is to expand the use of MCI's IP backbone and the wireless broadband initiatives are part of that," said Bruce Deer, president of SkyTel. "We are doing a series of pilots -- they are not really trials -- to make sure we understand this market and all of the business-related issues."

SkyTel is not offering free WiFi. Local residents and businesses can choose to use the service on a pay-as-you-go or a contract basis. Rates vary from residential wireless broadband services at $24.99 a month for 3 Mb/s to a small business service at the same speed for $69.99 a month, to a larger enterprise offering at speeds up to 6 Mb/s for $575 a month, plus $999 installation. The latter is intended as a T-1 backup service.

"We are looking for a sustainable business model," Deer said. "There are companies that have offered it free with mixed results. We wanted to try a more conservative approach."

The pay-as-you-go service for travelers is available for the UnpluggedCity network for $5.99 an hour, $9.99 a day and $24.99 a month. All services can be ordered from the UnpluggedCity Web site.

The city of Lexington can buy services at the standard contract price, Deer said. The city provided SkyTel with access to poles, lighting fixtures and other rights-of-way on which it WiFi equipment could be deployed.

"This is part of a multi-year effort by the city to revitalize downtown," Deer said.

SkyTel is doing a similar pilot with Colorado Springs that should be turned up in early 2006, and is in talks with other cities, as well as in competition for municipal RFPs, he added.

Deer could not comment on how SkyTel's efforts would be integrated in the merger Verizon-MCI. Verizon operates its own broadband wireless services, both through Verizon Wireless and through Verizon Avenue, a fixed broadband offering deployed in multiple municipalities.