The City of Edinburgh Council is planning to spend government funding on public Wi-Fi.
It has originally planned to use the money to bring super-fast fixed-line broadband connections to the Scottish capital, but the project had to be abandoned when it was discovered it breached EU competition law.
Instead, a significant portion of the £10.7 million funding package will used to introduce Wi-Fi on public transport and in council buildings throughout the city, the Scotsman reports.
The money will also be used to support the development of small and new businesses, while £1 million is to be spent on creating an online archive containing information on the Edinburgh Festival.
Alasdair Rankin, the city's finance convener, said the council will use the funding in a way that brings "maximum benefit" to the local economy.
He added the local authority is considering investing up to £1 million of its own money, but is waiting for the revised plans to receive government approval.
Posted by Mark Wynn