SCOTTSDALE, Ariz. – The number of hotspots providing public wireless LAN access continues to grow globally and more people are using them, reports In-Stat. But access revenues 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."
Recent research by In-Stat 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% of respondents said they would only use a free hotspot.
• Access revenues will start to decline due to increased competition and users’ reluctance to pay.
The research, "2008 Global Hotspot Market-A Time of Change and Growth" (#IN0803986WBB), covers the worldwide market for wireless hotspots. It provides end-user data on how and where the service is used and users’ 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.
