Can you compete if you limit the internet usage? I have a number of places in our area that I can use the internet for free. And it is unlimited.
Panera Bread, local Meijer grocery store Starbucks, a couple of library branches. All these have free wireless internet access.
Most of the Starbucks around the area also have internet access but it is through T-Mobile hot spots.
My opinion is that unless nobody else does it for free in your area, you should not have time limit enforcement.
As for routers, get a wireless router, and set the bandwidth to 802.11b. Finding a router that is solely a 802.1b router is impossible nowadays. You will need to get a 802.11g router and limit it to 802.11b.
And, of course, you will need a broadband internet.
That's it.