July 21, 2008

Wi-fi hotspots witness spectacular growth during last two years

Broadband Research firm ABI released its findings on the growth of Wi-fi hotspots across broadband enabled nations for the last two years. According to the report, the number of wi-fi hotspots is expected to nearly double (40 percent) by the end of 2008 since 2007.

The study also shows the latest change that is taking place amidst the wi-fi hotspot providers who now see the potential business opportunities of wi-fi and have started to offer the service free of cost or at affordable prices to their customers who take up other services.

Stan Schatt, the Research Director of ABI says:

“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.”

Further, many wi-fi hotspot providers are expected to follow this trend which is more likely to increase their business prospects of the other services they offer.

It should be noted that the UK already has the largest number of wi-fi hotspots in Europe while the report also shows that other European countries like Germany, Russia and France have also seen spectacular growth in wi-fi during the last two years.

Stan Schatt, has further commented:
“The first phase is likely to be a free or almost free service for good customers, those who have signed up for loyalty cards. Charging for service is counter-productive in the long run because the real money will be in value-add content downloads.”

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