Hotspot Access Revenues not Keeping Pace with Usage Growth

(Business News & Technology News, 20 Aug 2008)

The number of hotspots providing public wireless LAN access continues to grow globally and more people are using them. However, access revenues do not appear to be keeping up with the growth in use, according to market research firm In-Stat.

"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 percent 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.

Click here for more information on In-Stat