Hotspot Access Revenues Not Keeping Pace with Usage Growth
SCOTTSDALE, Ariz., August 19, 2008 -
The number of hotspots providing public wireless LAN access continues to grow globally and more people are using them, reports In-Stat http://www.in-stat.com . But access revenues do not appear to be keeping up with the growth in use, the high-tech market research firm says.
“Because of this trend, hotspot operators are turning to other methods to generate revenues,” says Daryl Schoolar, In-Stat analyst. “Operators have started bundling hotspot access with other services, such as fixed and mobile broadband. This way, consumers can access hotspots without paying a separate fee, and operators can generate some access revenue by bundling the cost of the service into a bigger service package that consumers are willing to purchase.”
Recent research by In-Stat found the following:
According to an In-Stat consumer survey, people are increasingly using hotspots for personal reasons.
Survey respondents are showing an increased reluctance to pay for hotspot access. Nearly 50% of respondents said they would only use a free hotspot.
Access revenues will start to decline due to increased competition and users’ reluctance to pay.
Recent In-Stat research, 2008 Global Hotspot Market—A Time of Change and Growth (#IN0803986WBB), covers the worldwide market for wireless hotspots. It provides end-user data on how and where the service is used and users’ willingness to pay for hotspot services. Supply-side analysis on how operators are changing their business strategies and global forecasts for hotspot venues and access revenues are included. Results from an In-Stat survey of US consumers are provided.
This research is part of In-Stat’s Wireless Broadband Evolution service. Broadband wireless data connectivity provides the key enabler for new mobility applications and services, which can offer enormous value to mobile consumer and business users. Wi-Fi, WiMAX, 3G/ 4G and other wireless technologies compete and complement each other to provide the connectivity for these services. The Wireless Broadband Evolution service provides actionable intelligence regarding the role that each technology may play in the growing wireless broadband market. Covering market and technology developments, operator deployments and end-user adoption, this service includes primary research from the entire value chain including technology developers, equipment manufacturers, service providers and business and consumer end-users.
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