2008-07-17 08:41:00
NEW YORK–(EMWNews)–Wi-Fi hotspots are continuing their torrid growth in 2008. According to
ABI Research’s WI-FI Hotspots Forecasts, by
the end of this year global hotspots will grow by 40% over 2007. The
greatest growth and the largest number of hotspots continue to be found
in Europe. While the UK has long led in European Wi-Fi hotspots, there
is also marked growth in France, Germany, and Russia.
Most remarkable about the hotspot market, says vice president and
research director Stan Schatt, are the dynamics of a fast-changing
business model. “Starbucks’
decision to go to a virtually free Wi-Fi hotspot model is having a
profound impact. Hotspot owners are beginning to see Wi-Fi as a cost of
doing business and an operational expense, rather than as a profit
center.” Schatt expects major retailers to
move towards a free service model in phases. “The
first phase is likely to be a free or almost free service for good
customers, those who have signed up for loyalty cards.”
One reason hotspot owners are willing to move towards such a business
model, according to Schatt, is the realization that, “Charging
for service is counter-productive in the long run because the real money
will be in value-add content downloads.” In
the near future hotspots are likely to encourage users to pay to
download the latest music and TV shows. Airport clubs are likely to
offer hotspot users the chance to download movies for their upcoming
trips. Starbucks has already begun selling music CDs in its stores. The
next logical step will be to move to selling music downloads.
The proliferation of devices that support Wi-Fi also makes charging for
such services more complex for hotspot owners. If a person is on a 3G
connection on a dual-band phone and then moves into a Wi-Fi hotspot, how
does the Wi-Fi billing take place? How many separate accounts must a
customer who has both a dual-band phone and a Wi-Fi enabled laptop have
in order to use a Wi-Fi network? Garnering money for downloads is a much
more straightforward matter.
Hotspot Forecasts (http://www.abiresearch.com/products/market_data/
Wi-Fi_Hotspot_Forecasts) provides users with historical market data
for Wi-Fi hotspots, and forecasts yearly market data. This includes the
number of Wi-Fi hotspots by region and by venue type, the number of
hotspot access points shipped for, as well as subscribers and revenue
data.
It forms part of the firm’s Wi-Fi
Research Service (http://www.abiresearch.com/products/service/Wi-Fi_Research_Service).
ABI Research is a leading market research firm focused on the impact of
emerging technologies on global consumer and business markets. Utilizing
a unique blend of market intelligence, primary research, and expert
assessment from its worldwide team of industry analysts, ABI Research
assists hundreds of clients each year with their strategic growth
initiatives. For information, visit www.abiresearch.com,
or call +1.516.624.2500.
(Long URLs in this release may need to be copied/pasted into your
Internet browser’s address field. Remove the extra space if one exists.)
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