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Wi-Fi Hotspots Still Evolving and Growing Despite Lack of a Solid Business Model
Posted: 28-Sep-2010 [Source: In-Stat]

[In-Stat reports the business model for Wi-Fi remains a primary uncertainty in the future of the hotspot market.]

Scottsdale, AZ -- The hotspot market continues to experience strong growth in deployed venues and usage, driven largely by wireless and broadband providers embracing Wi-Fi both as a competitive differentiator and enhancement to core services. Despite the continued growth in hotspot deployments, the underlying business model has been in a continuous state of definition and development over the past decade, and remains a primary uncertainty in the future of the hotspot market, says In-Stat (www.in-stat.com).

"We are a decade into the introduction of hotspot services and the market is still working out the revenue model," says Amy Cravens, Market Analyst. "Initially the market was based on pay-as-you-go revenues, with providers hoping it would evolve into ongoing subscriptions and corporate accounts. And while there has always been a free access component, branded hotspot venues like McDonalds and Starbucks, have made free access pervasive, which may lead to a public that is resistant to pay."

Recent In-Stat research found:

* In-Stat's consumer survey identified security concerns as the top barrier to hotspot usage. Other top concerns are service availability and costs.

* Annual venue growth is expected to remain strong over the next several years, but will begin to slow in later forecast years.

* Europe will account for 40% of worldwide venues in 2010.

* By 2012, handhelds are anticipated to account for half of hotspot connects.

* Europe and North America are the largest hotspot markets based on usage (annual connects).

* On a per location basis, airport hotspot usage dwarfs all other venues with several thousand connects per month.

Recent In-Stat research Worldwide Wi-Fi Hotspot Usage Soars, but is Model Sustainable? (#IN1004769WS) examines the worldwide market for public Wi-Fi access in hotspots (airports, caf├ęs/restaurants/bars, convention centers, hotels, retail, marinas, outdoor hospitality, and public areas). Included in the research is:

* Worldwide market potential, usage, business models, and competitive analysis for the hotspot market.

* Worldwide venue forecasts segmented by region and type of venue.

* Worldwide usage forecasts segmented by business versus consumer, by access device.

* Equipment forecasts include a Wi-Fi AP forecast.

* All forecasts provide aggregate and annual deployment numbers and are segmented by region and venue type.

For a free sample contact Elaine Potter, epotter@in-stat.com; (480) 483-4441.

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