Municipal Wi-Fi Deal Signed

In its first foray into municipal wireless Internet, Microsoft will provide online content, search, and advertisements for a free wireless Internet service being built by MetroFi in Portland, OR. Sponsoring this and other similar services could help Microsoft attract more users and advertisers to its online services, but the company faces competition from other early movers, particularly Google and Earthlink.

Partnership with MetroFi

MetroFi is a four-year-old company that is building wireless data networks based on the 802.11 (Wi-Fi) protocols in several metropolitan areas, including San Jose, CA, and Aurora, IL. The networks consist of numerous Wi-Fi hotspots that offer strong signals up to 300 feet away. In the case of Portland, the service will cover only a two-square-mile area by the end of 2006, but it will eventually expand to cover 95% of the city’s 134 square miles, reaching most of Portland’s more than 500,000 residents.

MetroFi plans to offer both free and subscription-based services. As users of the free service browse the Web, they will see persistent banner advertisements, sold by MetroFi directly to local advertisers. Users who pay US$20 a month will not see advertisements.