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

The Evolution of Personal Computing in 2025

The personal computing device market continues to demonstrate remarkable resilience despite recent fluctuations. According to the latest worldwide market study by International Data Corporation (IDC), global PC shipments are projected to reach 273 million units in 2025—a modest but significant 3.7 percent increase over the previous year. This growth reflects the market's adaptation to post-pandemic realities and evolving technology needs across the globe. Personal Computing Market Development While COVID-19 initially triggered unprecedented demand for computing devices during the shift to remote work and online education, we now see a more measured growth pattern. IDC has slightly adjusted its projections downward, indicating a market growing steadily rather than explosively. "In light of so many challenges around the world, Japan is a much-needed source of double-digit growth this year. Enterprises there as well as SMBs have been quickly replacing PCs in advance of the Window...