Research Reveals Who is Winning and Who Will Lose the Fight for the Public Access Wireless LAN Market

Every vendor, service provider and investor that has a business interest in the wireless and/or broadband Internet service marketplace is focused on WLAN technologies as an alternative and complement to 3G wireless and fixed ISP connectivity. The single unanswered question on everyones mind is how to introduce and grow the business in a way that is sustainable and optimizes the overall service portfolio?" Mind Commerce has taken a large step in answering this question through its research into the public access WLAN marketplace.

Public Access Wireless LAN Case Studies
October 1st, 2003
Mind Commerce Publications

There is simply no other research on the market of this kind. This highly valuable and timely report focuses on the public access WLAN or hot spot" market from a case study perspective. No other report focuses on the existing worldwide hot spot business from the perspective of the hot spot operators themselves.

This report answers important questions:

•   What is working and what is not working in the hot spot market?
•   What are the rational business models for hot spot operation?
•   Who are the leading worldwide hot spot operators and why?
•   Which hot spot operators will be successful for the long-term and why?

This report provides additional valuable information including:

•   Profile of the types of hot spot customers and their usage demands and requirements
•   Business case analysis for hot spot operation
•   Case study review, analysis and recommendations for representative hot spot service providers in three continents including 11 operators in North America, 10 operators in Europe, and 12 operators in Asia.

By mid-2004, we predict that many small hotspot operators will go out of business in North America. A few will be bought out by large telecom operators, who finally commit to the hotspot idea and actually start launches."

Who will survive? Who will prosper and why?

Hot Spot Operator Case Study Coverage:

North America

T-MOBILE
WAYPORT
BOINGO
HOTSPOTZZ (FORMERLY WIFI METRO)
HEREUARE
SURF AND SIP
FATPORT
TOSHIBA (COMPUTER SYSTEMS GROUP)
PRONTO
COMETA NETWORKS
CAFÉ.COM

Europe

TELIA HOME-RUN
SONERA
TELENOR
BT OPENZONE
TDC MOBILE DENMARK
WLAN GMBH
METRONET (AUSTRIA)
MEGABEAM
APTILLO NETWORK
SWISSCOM

Asia

CBCOM (CHINA)
CHINA MOBILE (CHINA)
SMCC (SHANGHAI, CHINA)
NTT-C (JAPAN)
NTT DOCOMO COMMUNICATIONS (JAPAN)
HANARO TELECOM
KOREA TELECOM
SINGTEL
STARHUB (SINGAPORE)
AIRBORNE ACCESS (PHILIPPINES)
AZURE (AUSTRALIA)
BLINK (EPLDT) PHILIPPINES
PCCW IMS (HONG KONG)
PCCW IMS Hotspots
YELLOWSPOTS (MALAYSIA, ASIA)

Case study coverage for each hot spot operator includes:

•   Number of hot spots deployed
•   Hot spot operator strategy
•   Pricing structure
•   Partners
•   Outlook and recommendations

Sample summary excerpt from report:
Metronet (Austria)
Metronet is Austrias biggest hotspot operator. It signed a deal with T-Mobile Austria to provide WLAN hotspot access to T-Mobile customers as well.
Metronet Hotspots
Metronet has approximately 290 hotspots, located in coffee shops, airports, and hotels.
Metronet Subscription/Access Options
Metronet has several subscription plans available.
   Business Plan: 19.50 USD per month plus .35 USD per MB
   Student: 6.50 USD per month plus .35 USD per MB
   Surfer: 13 USD per month plus .65 USD per MB
   Prepaid: 21. 50 USD for 120 minutes
Metronet Strategy
Metronet has adopted the strategy of offering many different plans suited to a variety of users. It has deployed a relatively large number of hotspots, and will continue to expand rapidly throughout 2003.
Metronet Outlook and Recommendations
Metronet will continue to expand the hotspot business and become an innovator during 2003. On the negative side, we believe that its plans are for the most part too expensive and, for the non-corporate customer, difficult to understand. They should rework the subscriptions on both fronts. Nonetheless, the outlook for Metronet favorable, especially if it maintains its deployment pace, markets more aggressively and lowers prices.

Method of research and analysis:

The primary market research was obtained through a series of interviews with experts in the field as well as discussions with hot spot operators and on-site interviews at various hot spot venues with local service managers, venue owners, and customers. The primary and secondary market research analysis was conducted by Mind Commerce WLAN expert, Zaga Novakovic, with input and review from other experts in the field.

Mind Commerce believes this research represents the most comprehensive analysis of worldwide hot spot operators to date. This research enables the WLAN supplier, service provider and investor to compare business models, strategies, pricing plans as well as evaluate best practices and the outlook for various operators. For more in depth consultation and/or customized research, contact Mind Commerce at Research@MindCommerce.com.

About the Author:

Zaga Novakovic worked with Ericsson for six years as senior product manager for 3G and business development manager for packet data in which she has engaged in forecasting, product development, 3G business strategy development, fraud prevention and developed business in the areas of WLAN and AAA. She has worked closely with operators all over the world, particularly in Asia and Latin America. She is also a published author in various industry periodicals including Telecommunications International, Telecommunications the Americas, and USA Today. Zaga may be reached at Zaga@MindCommerce.com

About the Publisher:

The Mind Commerce® mission is to provide customized research, consulting, training, and writing services for the telecommunications and IT industry. Mind Commerce clients include manufacturers, developers, service providers, industry organizations, and government. Mind Commerce clients include manufacturers, developers, service providers, industry organizations, and government. Mind Commerce differentiates itself from its competition by meeting the unique needs of its clients through customized product development and service delivery. For more information, visit the web site at www.MindCommerce.com.