Skip to main content

Why Free Wi-Fi Hotspot Service is Bundled

The number of Wi-Fi hotspots providing public wireless LAN access continues to grow globally and more people are using them, according to the latest market study by In-Stat.

But access revenues for service providers 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."

The research covers the worldwide market for wireless hotspots. It provides end-user data on how and where the service is used and consumer 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 U.S. consumers are provided.

In-Stat market study 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 percent of respondents said they would only use a free hotspot.

- Bottom line, access revenues from Wi-Fi will start to decline due to increased competition and user's reluctance to pay. This is destined to be a no-margin non-profit business.

Popular posts from this blog

Frontier AI Peaked. Here's What Comes Next

The prevailing narrative around artificial intelligence (AI) has been one of relentless scale. Bigger models, bigger clusters, bigger budgets. The assumption, largely unchallenged until recently, was that raw parameter count translated directly into competitive advantage. New research from Omdia suggests it's time to retire that assumption. According to the latest market study by Omdia, parameter growth in frontier AI models has slowed to around 5 percent annually since 2021, a stark contrast to the more than hundredfold expansion seen between 2019 and 2021. Enterprise AI Market Development For executives who have been making infrastructure and investment decisions based on the assumption that AI would keep demanding ever-larger, ever-more-expensive hardware, this finding deserves serious attention. The race to the top of the model size leaderboard has, at least for now, plateaued. Crucially, Omdia's analysts are not reading this as an AI winter. Alexander Harrowell, senior pri...