European Hotspots: $2.45 Billion in Venue and Subscriber Revenues by 2009
There will be 174,000 hotspots in Europe by 2009 and these will generate $2
45 billion in both subscriber and venue oriented revenues, according to a
recently released report by emerging wireless research firm, ON World Inc.
There will be 174,000 hotspots in
Europe by 2009 and these will generate $2.45 billion in both subscriber and
venue oriented revenues, according to a recently released report by emerging
wireless research firm, ON World Inc.
"Hotspots are a way for European fixed line operators to extend their
broadband networks and for mobile operators to finally profit from their 3G
investments," according to Colin Carroll, a senior research analyst for ON
World. The biggest revenue opportunity however is for venue owners who will
generate additional product oriented sales from their locations. As venue
owners become more educated about the benefits, ON World believes there will
be an increasing number of cafés, health clubs, hotels, retails stores and
malls that will offer hotspot services for free.
A Prime Environment for Hotspots
The European environment is nearly ideal for offering public broadband
access due to its concentrated population, high mobile phone penetration,
growing broadband adoption, cafe culture and centralized telecom
infrastructure. User adoption will start slowly due to high access costs,
unavailability of multi-mode cell/wifi phones, limited roaming and because
managed network operators are still educating the market at the local level.
ON World believes these limitations are short term and 2004 will see the
launch of several multi-mode cell/Wi-Fi phones that will provide network
operators with new ways to extend their broadband reach and create
compelling new services.
By 2009, ON World predicts that 15 percent of all hotspot users in Europe
will be frequent users, defined as those who use hotspots more than four
times per month, up from 3 percent in 2003. Frequent users will increasingly
opt for “all-you-can-eat” hotspot subscriptions that will likely be part of
a bundled service. Remaining hotspot users include a variety of revenue
models including an increasing number of users who will access hotspots for
free. European hotspot subscription revenues are projected to be $898
million in 2009.
Land Grab Moving Fast
Carroll notes that the land grab phase of the hotspot rollout in Europe is
quickly closing and as WiFi devices proliferate, the next phase of WiFi
enabled services will soon arrive. The rapid hotspot deployment phase of the
next three to five years will be supported and driven by operational service
support (OSS) and hotspot access providers such as AirPath, Nomadix and
Pronto Networks as well as aggregators such as iPass, GRIC and Trustive.
ON World believes Wi-Fi enabled devices will become widespread by the end of
2007 and this will result in increasing demand for hotspot oriented
multimedia services, voice over wireless LAN solutions and seamless roaming
solutions by companies such as Appear Networks, BridgePort Networks, Kineto
Wireless, Megisto Networks and WeRoam.
As with all things in Europe, there are identifiable differences from
country to country. Hotspot numbers, costs, adoption rates and usage figures
differ widely, and some of these findings are quite surprising. According to
ON World, the leading countries by overall hotspot deployments are the
United Kingdom, France, Austria, Switzerland, Germany, Netherlands, Sweden,
Italy, Norway, Finland and Spain. Portugal has shown rapid hotspot
deployments recently and has almost as many as Spain. Denmark's TDC just
announced that they have deployed 400 hotspots at Statoil, McDonald's, and
Baresso Coffee locations and plans to have 700 by year-end. Eastern European
countries such as Poland, Hungary and the Czech Republic are particularly
good opportunities for hotspot oriented developers, network operators,
service providers and venue owners due to relatively high mobile phone and
broadband adoption and low but increasing hotspot deployments.
(www.onworld.com)
45 billion in both subscriber and venue oriented revenues, according to a
recently released report by emerging wireless research firm, ON World Inc.
There will be 174,000 hotspots in
Europe by 2009 and these will generate $2.45 billion in both subscriber and
venue oriented revenues, according to a recently released report by emerging
wireless research firm, ON World Inc.
"Hotspots are a way for European fixed line operators to extend their
broadband networks and for mobile operators to finally profit from their 3G
investments," according to Colin Carroll, a senior research analyst for ON
World. The biggest revenue opportunity however is for venue owners who will
generate additional product oriented sales from their locations. As venue
owners become more educated about the benefits, ON World believes there will
be an increasing number of cafés, health clubs, hotels, retails stores and
malls that will offer hotspot services for free.
A Prime Environment for Hotspots
The European environment is nearly ideal for offering public broadband
access due to its concentrated population, high mobile phone penetration,
growing broadband adoption, cafe culture and centralized telecom
infrastructure. User adoption will start slowly due to high access costs,
unavailability of multi-mode cell/wifi phones, limited roaming and because
managed network operators are still educating the market at the local level.
ON World believes these limitations are short term and 2004 will see the
launch of several multi-mode cell/Wi-Fi phones that will provide network
operators with new ways to extend their broadband reach and create
compelling new services.
By 2009, ON World predicts that 15 percent of all hotspot users in Europe
will be frequent users, defined as those who use hotspots more than four
times per month, up from 3 percent in 2003. Frequent users will increasingly
opt for “all-you-can-eat” hotspot subscriptions that will likely be part of
a bundled service. Remaining hotspot users include a variety of revenue
models including an increasing number of users who will access hotspots for
free. European hotspot subscription revenues are projected to be $898
million in 2009.
Land Grab Moving Fast
Carroll notes that the land grab phase of the hotspot rollout in Europe is
quickly closing and as WiFi devices proliferate, the next phase of WiFi
enabled services will soon arrive. The rapid hotspot deployment phase of the
next three to five years will be supported and driven by operational service
support (OSS) and hotspot access providers such as AirPath, Nomadix and
Pronto Networks as well as aggregators such as iPass, GRIC and Trustive.
ON World believes Wi-Fi enabled devices will become widespread by the end of
2007 and this will result in increasing demand for hotspot oriented
multimedia services, voice over wireless LAN solutions and seamless roaming
solutions by companies such as Appear Networks, BridgePort Networks, Kineto
Wireless, Megisto Networks and WeRoam.
As with all things in Europe, there are identifiable differences from
country to country. Hotspot numbers, costs, adoption rates and usage figures
differ widely, and some of these findings are quite surprising. According to
ON World, the leading countries by overall hotspot deployments are the
United Kingdom, France, Austria, Switzerland, Germany, Netherlands, Sweden,
Italy, Norway, Finland and Spain. Portugal has shown rapid hotspot
deployments recently and has almost as many as Spain. Denmark's TDC just
announced that they have deployed 400 hotspots at Statoil, McDonald's, and
Baresso Coffee locations and plans to have 700 by year-end. Eastern European
countries such as Poland, Hungary and the Czech Republic are particularly
good opportunities for hotspot oriented developers, network operators,
service providers and venue owners due to relatively high mobile phone and
broadband adoption and low but increasing hotspot deployments.
(www.onworld.com)
posted by Rico Biriah at 9:30 am
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