Sunday, July 27, 2003
WiFi is too expensive when it's not free
Operating a WiFi hotspot that you charge money for costs $30 a day. Operating a free WiFi hotspot costs $6. Clearing $6/day in new profit from offering free WiFi is easy, clearing $30 a day in most locations is damned hard. Will more cafes do the math?
Here's the irony in Wi-Fi public access pricing: retailers can be profitable by offering free Wi-Fi as a customer acquisition tool. But when they charge for Wi-Fi access, these retailers, and the WISPs serving them, almost certainly lose money. According to a market study coming out this summer, retailers are quickly learning this lesson: up to 30% of US location owners who plan to deploy commercial hotspots in 2004 intend those hotspots to be free or free-with-purchase.Link Discuss (via WiFi Networking News)
posted by Cory Doctorow at 06:45:30 AM permalink | Other blogs' comments
