The Brazilian city of Sao Paulo will receive its Wi-Fi network for 40 per cent lower cost than initially expected thanks to the existing internet provision in its central area.

Planners are hoping that the availability of 120 free wireless hotspots will help 11 million people access the web via their chosen mobile devices.

Zdnet.com said the initial cost of installing a network for the city was $6.4 million (£3.9 million) but this has now been slashed down to $3.5 million (£2.1 million).

Sao Paulo’s mayor said that although connections around the city’s outskirts will require the same amount of investment, the central area already has the necessary infrastructure in place to provide Wi-Fi and will not require its original allocation of funding.

The project still promises a speed of 512Kbps per user for downloading and uploading multimedia along with a management system for identifying any misuse of the free connection.   

Local tech firms WCS and Ziva will deliver the hotspots after the pair were chosen during a tendering process involving six other companies. The contract is split into four areas, meaning each provider will be tasked with delivering Wi-Fi in two separate places.

After mobile-ent.biz reported a finishing date of mid-2013 back in February, work on the installations is now all set to begin with a view to completion by September 2014.