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

Navigating AI Implementation Challenges in 2025

As we approach 2025, the global Artificial Intelligence (AI) market is poised for significant growth. Traditional AI spending is rising, while Generative AI (GenAI) struggles to meet lofty expectations. This apparent dichotomy presents challenges and opportunities for vendors and business leaders navigating the complex world of AI implementation. Let's explore the overall situation. Traditional AI: A Pragmatic Approach In the coming year, we expect to see a surge in traditional AI spending as enterprises seek pragmatic, ROI-driven solutions. This trend is driven by a growing recognition of the limitations and risks associated with GenAI projects, which have shown alarmingly high failure rates of 80 to 90 percent in proof-of-concept stages. The trend towards traditional AI is further supported by data from Amazon Web Services (AWS), which revealed that over 85 percent of AI projects in 2024 were not based on GenAI.  This insightful statistic underscores the continued relevance and ...