Study: Wi-Fi services to bring in the bucks

Worldwide revenue from wireless network services will more than triple over the next four years, according to a report released Tuesday by In-Stat.

The market researcher says revenue will rise to $3.46 billion in 2009, up from the $969 million expected in 2005.

The growth is being fueled by an increasing number of hot spots, the researcher said, predicting that the number of hot-spot locations will double in the next four years from the present 100,000.

The pace of growth, however, will drop in the short term, In-Stat said, particularly in the beginning of 2006, as the market begins to mature.

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Also, over time, the average price-per-connection figure will fall, because of declining pay-as-you-go pricing, increasing service subscriptions and the increased presence of free hot spots, In-Stat analyst Amy Cravens said in a statement.

According to In-Stat, the most growth in the sector will come from the cafe segment. The segment--which includes coffee shops, fast food and restaurants--will grow 2.5 times from 40,000 venues now to just less than 100,000 hot spots by 2009, In-Stat said.

"Much of the growth in the cafe/restaurant market will be characterized by branded deployments such as the Starbucks, McDonald's and Panera Bread hot-spot networks," Cravens said.

Significantly, just about a month ago, Intel, with the help of many others, such as IBM, Dell and Cisco, launched a program for rolling out municipalitywide wireless networks in 13 cities. The cities that join the initiative, dubbed Digital Communities, are meant to have a broadband wireless infrastructure that lets the public better connect with police and fire personnel, as well as with public-works employees.

[webgodjj]

ya right

Ok. Here is the problem with this model. There are several, and
too many providers that offer wireless. Want wireless in Borders
and Starbucks? You have to pay two seperate companies wireless
fees. So I don't go to starbucks anymore, and hang in coffee shops
that offer free wireless. It's easy to find a free hotspot, why pay?

[webgodjj]

ya right

Ok. Here is the problem with this model. There are several, and
too many providers that offer wireless. Want wireless in Borders
and Starbucks? You have to pay two seperate companies wireless
fees. So I don't go to starbucks anymore, and hang in coffee shops
that offer free wireless. It's easy to find a free hotspot, why pay?

[webgodjj]

ya right

Ok. Here is the problem with this model. There are several, and
too many providers that offer wireless. Want wireless in Borders
and Starbucks? You have to pay two seperate companies wireless
fees. So I don't go to starbucks anymore, and hang in coffee shops
that offer free wireless. It's easy to find a free hotspot, why pay?

[webgodjj]

ya right

Ok. Here is the problem with this model. There are several, and
too many providers that offer wireless. Want wireless in Borders
and Starbucks? You have to pay two seperate companies wireless
fees. So I don't go to starbucks anymore, and hang in coffee shops
that offer free wireless. It's easy to find a free hotspot, why pay?