NextWave Wireless, of San Diego, has agreed to acquire GO Networks, a Mountain View, Calif. mobile WiFi network provider.

It apparently comes at a loss for Go Networks’ investors, suggesting how competitive the WiFi industry is. According to the company’s statement, the purchase includes an initial cash payment of $13.3 million, plus up to $25.7 million in possible earnouts. NextWave also will assume around $7.46 million in GO Networks obligations.

However, as noted by PE Wire, GO Networks raised a $20 million Series A round in late 2004 at a post-money valuation of approximately $40 million. Add in the three years that have passed, and the time-value of money, this deal is hardly a win. Backers included Accel Partners, Apax Partners, Israel Seed Partners and Pitango Venture Capital.

Go Networks focuses on building out municipal and college mobile WiFi networks.