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From the News Desk
Wednesday, 20. August 2008
Users Not Willing to Pay for Wi-fi Services, Finds In-Stat
A recent research conducted by In-Stat found that the number of hotspots providing public wireless LAN access continues to grow globally and more people are using them. But access revenues do not appear to be keeping up with the growth in use.
Further findings revealed that Survey respondents showed an increased reluctance to pay for hotspot access. Nearly 50 percent of respondents said they would only use a free hotspot. The survey also found that access revenues would start to decline due to increased competition and users' reluctance to pay.
"Because of this trend, hotspot operators are turning to other methods to generate revenues," says Daryl Schoolar, In-Stat analyst. He further added saying that 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.
Further findings revealed that Survey respondents showed an increased reluctance to pay for hotspot access. Nearly 50 percent of respondents said they would only use a free hotspot. The survey also found that access revenues would start to decline due to increased competition and users' reluctance to pay.
"Because of this trend, hotspot operators are turning to other methods to generate revenues," says Daryl Schoolar, In-Stat analyst. He further added saying that 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.
