Skip to main content

Free Wi-Fi Access Growth Limits VAS Market

The wireless hotspot market continues to experience strong growth in deployed venues and usage, driven by broadband service providers embracing Wi-Fi both as a competitive differentiator and an enhancement to their core access services.

Despite the continued growth, the underlying hotspot business model has been in a continuous state of definition and development over the past decade, and remains a primary uncertainty in the future, according to the latest market study by In-Stat.

"We are a decade into the introduction of hotspot services and the market is still working out the revenue model," says Amy Cravens, Market Analyst at In-Stat.

Initially the market was based on pay-as-you-go revenues, with providers hoping it would evolve into ongoing subscriptions and corporate accounts.

However, there has always been a free access component -- as branded hotspot venues like McDonald's and Starbucks have made free access pervasive -- it's now uncertain if this activity may lead to a customer resistance to pay for new value added services (VAS).

In-Stat's market study found the following:

- Their consumer survey identified security concerns as the top barrier to hotspot usage. Other top concerns are service availability and costs.

- Annual venue growth is expected to remain strong over the next several years, but will begin to slow in later forecast years.

- Europe will account for 40 percent of worldwide Wi-Fi venues in 2010.

- By 2012, handhelds are anticipated to account for half of hotspot connects.

- Europe and North America are the largest hotspot markets based on usage (annual connects).

- On a per location basis, airport hotspot usage dwarfs all other venues with several thousand connects per month.

Popular posts from this blog

Ultra-Wideband in Billions of New Devices

 Ultra-Wideband (UWB) is quietly becoming one of the most strategic short-range wireless technologies in the market, moving from niche deployments into the mainstream of smartphones, cars, and smart spaces. As the ecosystem matures and next-generation implementations arrive, UWB is shifting from nice-to-have to a foundational capability for secure access, sensing, and high-performance device-to-device connectivity. UWB Technology Market Development Unlike Wi-Fi, Bluetooth, NFC, or legacy IEEE 802.15.4 implementations, UWB combines three powerful attributes in a single radio: secure ranging, radar-like sensing, and low-latency, high-throughput short-range data. This allows networking and IT vendors to architect experiences that blend precise location, context awareness, and rich interaction in ways traditional connectivity stacks cannot easily match. According to the latest worldwide market study by ABI Research, UWB is expected to be one of the fastest-growing wireless connectivity...