Hotspot Revenue

Peter : On Rad's Radar?
Peter
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

Hotspot Revenue

In-Stat's study on hotspot revenue, according to Communications Direct:

The number of hotspots providing public wireless LAN access continues to grow globally and more people are using them, reports In-Stat. But access revenues do not appear to be keeping up with the growth in use, the high-tech market research firm says.

My favorite part is the summary that makes some obvious conclusions, as we see here:

  1. According to an In-Stat consumer survey, people are increasingly using hotspots for personal reasons.
  2. Survey respondents are showing an increased reluctance to pay for hotspot access. Nearly 50% of respondents said they would only use a free hotspot.
  3. Access revenues will start to decline due to increased competition and users' reluctance to pay.

So no one wants to pay for wi-fi access. This is what EarthLink learned in its Muni Wi-Fi experiments. Consumers will pay for EVDO, though. On blogs and at conferences, people complain about the daily rate for Internet Access, even though they know it is expensive to provide. It makes no sense to me, but I would like it if it was included in some room rates or I could trade reward points for free access. It used to be $9.95 a day, but in Boston at the Westin Seaport it was $12.95 per day. That's why people don't buy it. Under $10, sure. Over $10, wait! What?!

But if no one wants to pay, then revenue WILL drop. Duh!



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