T-Mobile Bringing In $13/Day/Hotspot

from the do-the-math dept

Thu, Mar 25th 2004 4:10pm — Mike Masnick

Glenn Fleishman is looking at the numbers and figures that T-Mobile is bringing in approximately $13/day per hotspot they're running. Not particularly overwhelming - especially when their "daypass" rates are $10/day. As Glenn points out, they're a long way from making WiFi pay. Meanwhile, Schlotzsky's continues to talk about how much more business they're doing thanks to free WiFi. Which seems like the better business model to you?

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3 Comments

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beck, 25 Mar 2004 @ 7:42pm

Bad Model
Their business model doesn't work. People are paying $40 to $50 per month for service at home. How many are going to pay $10 to use a hot spot for a few minutes on one day when they are away from home, instead of waiting until they get home or to work?

The people who will pay are the business travelers who are away from home and need Internet access. The ironic part is that they have an expense account to pay the fee, but most hotels are offering the service for free.

I think that the only way that there will be mass adoption of wireless hot spots is if you can replace your home service with a use-anywhere service, for about the same price as home service.

There is precedence for this - look at cellular/wireless phone service. At one time cellular phones were a luxury for use away from home in limited locations, but now they can be used anywhere and many people are going solely with wireless service even at home, with the cost being the same as wired home service.
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TAD, 26 Mar 2004 @ 6:43am

No Subject Given
It will be a very, very happy day when there is free wi-fi at Borders and Barnes and Noble. It is frustrating as hell to find several interesting looking books on a given subject and KNOW that I can find out which is rated best because there's wi-fi in the air, but also knowing that it'll cost me $10 just to see the reviews. That sucks.

I would purchase more books at those stores if I could just see the damned reviews! As it is, I write down the ISBNs and go home to check Amazon, and I usually purchase from Amazon.

Stupid empty suits! Give us what we want and it will make you more money!
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thecaptain, 26 Mar 2004 @ 7:06am

nice days, terrasse
One a nice day I would desperately LOVE a wifi hotspot somewhere at a streetside cafe, at that point I'd spend a lot of time (and money) at this place instead of just popping in for a coffee and going back home to get on the laptop to surf.

Our university has many wifi hotspots which I love, but its not really where I hang out so....
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