Telecoms Like WiFi, Wish They Knew The Business Model

from the gotta-keep-up-with-the-joneses dept

As most people have suspected, with the recent push from all the major telecom players into the WiFi space, the carriers know they need to offer WiFi, but they're still confused about the business models. This, of course, is why some are comparing it to the dot com bubble, where there was a ton of build-out, with no clear payoff. Of course, it's a situation where carriers realize that if they don't provide it, it will cause them to lose customers. In the end, it's becoming pretty clear that it's going to be difficult, if not impossible, to profit directly off of offering WiFi hotspots (except, possibly, at airports). The money has to be made in offering something above and beyond the hotspot itself - such as security. Also, I would bet that carriers are going to move towards the Verizon model of offering WiFi - where subscribers to their home DSL offering get access to their WiFi network as well. This gives customers more incentive to sign up for broadband from the provider with the widest WiFi network (or the best coverage in areas that are frequently traveled).
Hide this

Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.

Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.

While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.

–The Techdirt Team


Reader Comments

Subscribe: RSS

View by: Time | Thread


  • identicon
    Anonymous Coward, 22 Aug 2003 @ 6:44pm

    to assume telcos don't understand wifi is to be ig

    The *first* telco that I found to actually *understand* the business and must-do implications of WiFi Was Clear of New Zealand.

    Last I heard they were rapidly deploying 3 access points per .5 km spaced telephone pole.

    Folks, it's unregulated.

    That means Telcos can deploy it, amp it up and charge for it. Admittedly at great expense, but telcos have money to burn and there are a few telcos who actually understand that they need to monopolize this frequency resource to completely negate it's "value" to the consumer.

    The PI, on the other hand, is completely clueless.

    link to this | view in chronology ]


Follow Techdirt
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Discord

The latest chatter on the Techdirt Insider Discord channel...

Loading...
Recent Stories

This site, like most other sites on the web, uses cookies. For more information, see our privacy policy. Got it
Close

Email This

This feature is only available to registered users. Register or sign in to use it.