Revenue generated from public wi-fi hotspots – areas where wireless devices can connect to networks like the internet – could rise by as much as 121% compound annual growth rate over the next five years, according to a new report from Allied Business Intelligence (ABI).
ABI says that wi-fi hotspots are continuing to garner attention from a wireless industry that is seeking revenue streams and opportunities. It says that a momentum is building, with actual commercial deployment moving closer, despite improvements needed in some areas.
Issues facing the hotspot industry range from interoperability between hotspot locations to the need for operators and aggregators to acquire more users. “In order for this industry to continue its growth, it has to more clearly communicate the technology’s benefits to end-users, in order to generate wide scale adoption,” claims Tim Shelton, ABI’s director of wireless research.
ABI projects that worldwide hotspots will grow to over 160,000 locations by 2007, from approximately 28,000 in 2003. These numbers have a potential of being higher, depending on mainstream consumer adoption, it says.
Contradicting ABI’s prognosis, Forrester Research recently suggested that public wi-fi hotspots would largely be a failure (see Wireless Hotspots Will Fail, Says Forrester).
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