October 25, 2001
As networks are implemented in more sophisticated and powerful ways, consumers are looking for ways to connect to the Internet in new locations -- cafes, airports, sporting arenas, public libraries -- without having to sacrifice bandwidth.
The various data services that are widely available on handheld devices offer very limited download speeds. This leaves a perfect opportunity for these hotspots to serve the customers that need greater bandwidth on the go. In 2000, North American hotspot subscriber revenue was $1.1 million, but is expected to increase to $868 million in 2006.
Wireless local area network (LAN) hotspots are the perfect intermediate step between the residential or enterprise LAN and the wide area network (WAN). They serve as a bridge between the high bandwidth/short range characteristics of a LAN and the low bandwidth/ long-range characteristics of a WAN.
The arrival of these hotspots is signaling that wireless LANs are finally becoming popular enough to command such a market. In 1999, there were 1.22 million wireless LAN nodes shipped worldwide, this figure jumped to 4.4 million in 2000. ABI expects this number to reach 47.4 million in 2006, according to findings in the new report, "Wireless LAN Public Hotspots: Assessment of Business Models, Service Rollouts and Revenue Forecasts."
"Hotspots are going to extend the capabilities of LANs to the point where they can seamlessly connect to advanced WANs," said ABI Senior Analyst and report author Joshua Wise. "Wireless LANs are going to allow consumers the freedom to use their handheld devices or laptops in a much more powerful way."
Although each venue within the hotspot industry will take advantage of wireless LANs in different ways, they will all serve to accelerate the growth of the industry as a whole. Those locations employing wireless LANs will realize additional benefits, either through improvements in efficiency and performance or add-on revenue opportunities.
ABI's study discusses the opportunities that are opening up as a result of consumers using wireless LAN connectivity in the public sector. Regional breakdowns, revenue projections and adapter shipments are also examined in the report.
Allied Business Intelligence Inc. is an Oyster-Bay, NY-based technology research think tank and consultancy that offers expert advice and research on wireless, broadband and emerging technologies. Details can be found at www.alliedworld.com or by calling 516/624-3113.
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