July 31, 2003, 12:00 AM

Fast growth of free wi-fi makes fee wi-fi a tough sell

Retailers looking to provide wi-fi hotspots to consumers better justify them on the basis of higher sales rather than on fees for wi-fi Internet access, says a new study from researchers Frost & Sullivan.

 

Retailers looking to provide wi-fi hotspots to consumers better justify them on the basis of higher sales rather than on fees for wi-fi Internet access, says a new study from researchers Frost & Sullivan. “The phenomenal growth of hotspots available to the consumer for little or no charge makes it difficult for providers to justify service charges, resulting in lower revenues for the wi-fi hotspot services markets,” Frost & Sullivan says in its new report, U.S. Wi-Fi Hotspot Services Market.

A number of retailers, including Starbucks Corp., Borders Group Inc. and McDonald’s Corp., are making wireless Internet access--known as wi-fi for wireless fidelity--hotspots available to customers for a fee. Others, such as Schlotzsky’s Deli, are offering free access.

Although wi-fi revenues totaled $18 million in 2002 and are projected to reach $1.4 billion by 2009, “the proliferation of free hotspots--over 600 across North America in 2002--makes the customer price conscious, therefore making it more difficult for providers to expand Wi-Fi services,” the report says. Freenets--large community or civic wireless networks--threaten to render wi-fi hotspots redundant as their coverage increases, the report says.

 

comments powered by Disqus

Advertisement

Advertisement

Advertisement

From IR Blogs

FPO

Shmuli Goldberg / E-Commerce

Five tips for winning Amazon's Buy Box during the holiday season

Negative deliveries and bad feedback will keep you from the coveted spot on Amazon.com. On ...

FPO

Jochen Moll / B2B E-Commerce

Grasping the global dimensions of B2B e-commerce

To successfully sell online to businesses around the world suppliers must get a lot of ...

Advertisement