DALLAS-The hot-spot service market in the United States will garner revenues in excess of $800 million by 2007, according to a new report from Parks Associates.
The research firm estimates service revenues for hot spots will reach $105 million for 2003 and will experience a compound annual growth rate of approximately 50 percent between 2003 and 2007.
The report, “Public Hot Spots: Moving Beyond Road Warriors,” which divides hot-spot users into three groups-business subscribers, broadband subscribers and ad-hoc users-suggests that to move the market forward, service providers must develop different business models to accommodate each user group.
“The majority of early adopters are business travelers, and they will be a major part of the market for years to come. Companies with prime venues and strong enterprise focus may see some early success,” explained Yuanzhe (Michael) Cai, a research analyst with Parks Associates.
“For the market to move beyond road warriors, however, telecom carriers have to bundle hot spots with their other communications services and provide continuous support for this market. Most telecom carriers are likely to follow Verizon’s suit and offer hot-spot services as a free amenity, but they may also provide tiered services based on location and quality of services.”
