Freedom Lives

March 20, 2004

Paid Hotspots not cutting it

In the I told you so Dept.


Researcher In-Stat/MDR revised its earlier hotspot market predictions due to slow adoption of paid-access hotspots. The researcher's revised estimates project that the hotspot market will generate about $80 million in revenue this year. In the U.S., In-Stat estimates that hotspot service providers will only make about $28 million, significantly less than earlier predictions. Critics blame the failure of paid-access hotspots on three factors: connection charges are too high; no single hotspot service operator has ubiquitous or nearly ubiquitous network coverage; and the growth of free hotspots, which most WiFi users can find relatively easily. Free hotspots are a growing trend both with local and regional stores, like Mom & Pop coffee shops, and national restaurant chains like Schlotzsky's.

Bolding is mine.

Posted by Starhawk at 07:36 AM | WiFi | Comments (1) | TrackBack (0)