Major Players in Public Wi-Fi

As of Nov. 2003, dozens of companies are trying to create a business around public Wi-Fi access, but it’s too early to tell which business models (if any) will be successful. Because public Wi-Fi hotspots are most ubiquitous in the United States, most of the companies involved are based in the United States as well, although the public Wi-Fi space is beginning to heat up in Europe (particularly the United Kingdom and Germany) and Asia (mainly Japan and Taiwan).

The players can be divided into four categories, although some fit into more than one category.

Hotspot venues are public locations, such as retail outlets, hotels, and airports, that offer Wi-Fi hotspots to the general public. There are numerous ways to become a hotspot venue-a coffee shop with an IT-savvy manager may simply buy and install 802.11 networking equipment and a DSL line, then offer free wireless Internet access as a way to attract customers. More frequently, however, venues will contract with third parties to handle such tasks as installation, support, and billing. In some cases, the venue will bear some of the costs of installation, then reap a percentage of the fees charged to users who connect via their access points; in others, the venue assumes no cost but receives no cut of the access fees.