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

Banking as a Service Gains New Momentum

The BaaS model has been adopted across a wide range of industries due to its ability to streamline financial processes for non-banks and foster innovation. BaaS has several industry-specific use cases, where it creates new revenue streams. Banking as a Service (BaaS) is rapidly emerging as a growth market, allowing non-bank businesses to integrate banking services into their core products and online platforms. As defined by Juniper Research, BaaS is "the delivery and integration of digital banking services by licensed banks, directly into the products of non-banking businesses, commonly through the use of APIs." BaaS Market Development The core idea is that licensed banks can rent out their regulated financial infrastructure through Application Programming Interfaces (APIs) to third-party Fintechs and other interested companies. This enables those organizations to offer banking capabilities like payment processing, account management, and debit or credit card issuance without