CEDAR KNOLLS, N.J.-Rapid acceptance of 802.11b (Wi-Fi) technology has caused prices to fall, further fueling growth, according to new research from Probe Group.
David Chamberlain, Probe analyst, suggested public wireless local area networks offer additional sales opportunities for companies operating them: “These so-called public WLAN hot spots, it is hoped, will attract revenue-generating laptop users to airport lounges, coffee shops and bookstores,” he explained. However, Chamberlain also pointed to several factors that could limit the revenue potential of public wireless LAN operators, including a limited total addressable market, customer resistance to paying or multiple Internet access accounts, and the high cost of backhaul.
Probe expects wireless networks to be important in the spread of public WLAN services, and suggests wireless carriers could emerge as the dominant providers. However, Probe also points out that wireless carriers’ technological needs, especially regarding roaming, authentication and billing, are more complicated than those of more traditional Internet service providers.
