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Study looks at hot-spot demand, value

STAMFORD, Conn.-The 71,000 public wireless local area network hot spots expected to exist in 2003 will not meet the needs of the projected 9.3 million users worldwide, according to new research from Gartner Inc.

Gartner expects more than 70 percent of all hot spots in 2003 to be located in retail outlets like coffee shops, gas stations and restaurants, and expects most large airports and hotels to install hot spots by 2005. Retail outlets are considering installing hot spots to attract customers with notebook PCs, 50 percent of which are expected to be WLAN-enabled by 2004, explained Gartner.

“These deployments are justified not by profit but through a vision of greater customer services. Network and installation costs are often offset by profits in other business segments,” explained Ken Dulaney, vice president at Gartner. “Viewed singularly, these hot spots do not generate profit, but as part of the overall business model they do.”

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