FREE outdoor wi-fi is set to be rolled out across Adelaide city centre by the end of next year in an Australian first.

The State Government and Adelaide City Council will today unveil plans to provide the free high-speed internet access in public areas such as Rundle Mall and Victoria Square and ranging from Gouger Street to the riverbank and West Terrace to East Terrace, by the end of 2013.

It would also be at city festivals and events.

Under the plan, aimed at driving business and enticing visitors to the city, Adelaide would become the first capital city in Australia to offer blanket wi-fi coverage across the central business district including streets, parks and shopping malls as opposed to selected areas.

Premier Jay Weatherill said the Adelaide City Wireless Broadband project would encourage shoppers, diners, students and tourists to spend more time in the city.

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"We want to make Adelaide a modern, progressive and smart city," Mr Weatherill said.

"It is about driving opportunities for our most innovative entrepreneurs.

"For local businesses, it will provide new ways of communicating with consumers."

The Government, which commissioned KPMG to conduct a feasibility study, is contributing $1 million to the initiative while the city council is pitching in $500,000.

The Government is seeking proposals from IT businesses to develop and operate the network and experts are optimistic IT companies will back the idea.

The project will likely involve installing shoebox-sized access points which transmit wi-fi signals on top of traffic lights.

Similar free wi-fi networks, which cap data downloads and enforce time restrictions, have been introduced in Prague, Singapore, Chattanooga, Wellington, Auckland and Luxembourg.

Lord Mayor Stephen Yarwood said the "high quality and reliable" service would better promote the city.

"This is about using social media to make Adelaide's brand go global," Mr Yarwood said.

"The easier we can make it for people to access the internet and use social media, the more city users can raise the profile of the city itself.

"We are confident this will be an attractive proposition for people to get involved and we are confident we will have keen interest from the private sector."

Business SA chief executive Nigel McBride said free outdoor wi-fi would help local businesses gain a competitive advantage.

"This new service will provide convenience for businesses, residents, shoppers and tourists, who are all reliant on the latest information," Mr McBride said.

"It is becoming increasingly important for businesses to develop an online presence and free wi-fi will provide further opportunities for our many innovative businesses."

The City Council offers free wi-fi in about 100 businesses and cafes in the CBD.

The Government last month introduced a 12-month trial of free wi-fi on all Adelaide Metro trams and 20 buses.

Adelaide University marketing adjunct lecturer Dr Cullen Habel said free outdoor wi-fi would put Adelaide on the map, by improving word of mouth in terms of tourism.

Ovum IT research director Steve Hodgkinson said supplying free wi-fi allowed providers to broaden their advertising and reach more customers.

Ascot Park woman Kirsty Lobb, 20, said free wi-fi across the city was a good idea.

"It will be good for tourists, businesses and students at the universities," she said.