Now Still Dream For Free Wi-Fi Plan for the Sydney City

Australia's New South Wales government has cancelled plans to deploy a free Wi-Fi network in its main city centres. While the plan was originally announced at the end of 2006, last week Commerce Minister Eric Roozendaal cancelled the plans, saying that none of the tenders "demonstrated a benefit for taxpayers".

"What's clear from the EOI [expressions of interest] is that the market believes the delivery of free wireless broadband is not practical for the government at this current time, based on technical and financial grounds," he said in a statement.

Mr Roozendaal said free Wi-Fi projects had proven ineffective in a number of US cities when introduced. "Most schemes sponsored by overseas governments have collapsed and require further funding to the tune of tens of millions of US dollars," he added.

The opposition politicians said that the cancellation of the project sent the wrong signal to investors.