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Wireless Data Hotspot Services to Reach $3.46 Billion in 2009
Posted: 20-Sep-2005 [Source: In-Stat]

[Gobal hotspot locations currently stand at 100,000 and are expected to double by the end of 2009 dramatically increasing hotspot revenue.]

Scottsdale, AZ -- Worldwide wireless data hotspot revenue will rise from $969 million in 2005 to $3.46 billion in 2009, reports In-Stat. This rapid growth will occur as the number of hotspot locations nearly doubles in size from 100,000 in 2005 to almost 200,000 by the end of 2009, the high-tech market research firm said.

"While the number of venues will continue to grow, the pace of this growth is expected to slow beginning in 2006 as the market begins to mature," said Amy Cravens, In-Stat analyst. "While usage and revenue continue to grow, over time average pricing-per-connect will fall, due to declining pay-as-you-go pricing, increasing service subscriptions, and the increasing presence of free/amenity venues increases."

A recent report by In-Stat found the following:

* The largest sector of the hotspot market will continue to be the cafe market (including coffee shops, fast food and full-service restaurants), which will grow from just over 40,000 venues worldwide in 2004 to just under 100,000 venues by 2009.

* Much of the growth in the cafe/restaurant market will be characterized by branded deployments such as the Starbucks, McDonald's and Panera Bread hotspot networks.

* For the past several years, hotels have offered broadband Internet access in guestrooms via wired connections, but many of these properties now offer wireless access in certain areas or throughout the entire property.

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