OYSTER BAY, N.Y.-The number of worldwide hot spots will grow from 28,000 in 2003 to 160,000 in 2007, according to analyst firm ABI, in spite of challenges in the market like achieving interoperability between hot spots and attracting users.
ABI suggests selling Wi-Fi services as part of a bundled communications offering to stimulate consumer interest. “There are some terrific opportunities for operators to start bundling services, offering consumers a more data-intensive usage model, as well as a more compelling package of benefits and value,” said Tim Shelton of ABI.
ABI’s new research further examines business case models, subscriber trends, locations and revenue projections for the worldwide hot-spot market through 2008.
A new report from Parks Associates, meanwhile, forecasts U.S. consumer adoption of public hot spots will remain slow. According to Parks Associates, thus far, less than 3 percent of Internet subscribers in the United States have used public hot spots and only 5 percent of those have become subscribers.
The study disputes recent industry claims that more than 5 million North American consumers will have used hot spots by the end of the year. “That number is simply unrealistic,” said Yuanzhe Cai of Parks Associates. “The most optimistic 2003 estimate of hot-spot users in the United Sates should not exceed 2.5 million.
