Information Technology minister K. Tarakarama Rao told reporters Tuesday that the government would choose the best technology for implementing the project.
"We want to provide level-playing field to all network and service providers and that is why we are calling RFP (Request for proposal). All those interested can participate," he said.
Stating that technology is evolving in this area, the minister said they were excited about a new technology VoiceFi, which enables dissemination of signal in a radius of 10 km. He said the government was talking to a company and was waiting for it to share their proposal.
The IT minister said providing a completely free WiFi service everywhere in the city would be challenge. He pointed out that companies like Tata, Reliance and Airtel were launching their own 4G services and simultaneously launching WiFi initiatives. Airtel is already offering WiFi at 30 off Cafe Coffee Day outlets.
Rao said the WiFi service would be free for a limited period and then the Memorandum of Understanding (MoU) will be signed for levying the charges.
The minister also explained that the project will entail minimum cost to the government as its role would be limited to enabling the service rollout.
The state government has already held talks with some telecom services providers and received the proposals, but to ensure a level-playing field it decided to call the tenders.
Officials said if the project is implemented, Hyderabad will become the first WiFi enabled city in the country.