Freedom4 has teamed up with Milton Keynes council to launch what it claims is the "first commercial WiMax service".

The service will offer residents and business broadband without the need for a BT phoneline.

The business service is priced at three price points: £60, £100 and £160 per month with a one-off £45 connection fee.

Meanwhile, consumers will pay £20, £25 and £50, with 1,000 customers in total having already signed up.

Steven Jewell, chief executive of ConnectMK, a company owned by the council which is partnering Freedom4, said the link-up was the first step towards making Milton Keynes "the first WiMax-powered wireless internet city".

He added: "As the WiMax network expands, we will have the capability to offer the service to an increasing number of residents and businesses, helping to make Milton Keynes a highly connected city."

Under the terms of the agreement Freedom4 will be loaning computers to low-income Milton Keynes residents in accordance with the council's digital inclusion targets.