Microsoft has initiated a project to provide the city of Portland, OR free, ad-supported WiFi service, complete with MSN content.

Yesterday, Microsoft announced its deal with MetroFi to distribute MSN-generated content -- local news, weather and entertainment information -- and advertisements to wireless users in Portland via WiFi. The service is expected to launch later in 2006 and, when completed, cover 95 percent of the city.

Under the deal, the WiFi network will rely on Microsoft's adCenter platform to help advertisers reach local WiFi users.

"Microsoft's support of the Portland network further reinforces the validity of advertising-supported municipal WiFi," Chuck Haas, CEO and cofounder of MetroFi said in a statement.

In August, Ecommerce Times reports, Microsoft's competitor, Google, spent $1 million on a WiFi network in its corporate hometown of Mountain View, CA.