September 28, 2010 00:15 ET

Wi-Fi Hotspots Still Evolving and Growing Despite Lack of a Solid Business Model, Says In-Stat

SCOTTSDALE, AZ--(Marketwire - September 28, 2010) - The hotspot market continues to experience strong growth in deployed venues and usage, driven largely by wireless and broadband providers embracing Wi-Fi both as a competitive differentiator and enhancement to core services. Despite the continued growth in hotspot deployments, the underlying business model has been in a continuous state of definition and development over the past decade, and remains a primary uncertainty in the future of the hotspot market, says In-Stat ( 

"We are a decade into the introduction of hotspot services and the market is still working out the revenue model," says Amy Cravens, Market Analyst. "Initially the market was based on pay-as-you-go revenues, with providers hoping it would evolve into ongoing subscriptions and corporate accounts. And while there has always been a free access component, branded hotspot venues like McDonalds and Starbucks, have made free access pervasive, which may lead to a public that is resistant to pay."

Recent In-Stat research found:

  • In-Stat's consumer survey identified security concerns as the top barrier to hotspot usage. Other top concerns are service availability and costs.
  • Annual venue growth is expected to remain strong over the next several years, but will begin to slow in later forecast years.
  • Europe will account for 40% of worldwide venues in 2010.
  • By 2012, handhelds are anticipated to account for half of hotspot connects. 
  • Europe and North America are the largest hotspot markets based on usage (annual connects).
  • On a per location basis, airport hotspot usage dwarfs all other venues with several thousand connects per month.

Recent In-Stat research Worldwide Wi-Fi Hotspot Usage Soars, but is Model Sustainable? (#IN1004769WS) examines the worldwide market for public Wi-Fi access in hotspots (airports, cafés/restaurants/bars, convention centers, hotels, retail, marinas, outdoor hospitality, and public areas). Included in the research is:

  • Worldwide market potential, usage, business models, and competitive analysis for the hotspot market. 
  • Worldwide venue forecasts segmented by region and type of venue.
  • Worldwide usage forecasts segmented by business versus consumer, by access device.
  • Equipment forecasts include a Wi-Fi AP forecast.
  • All forecasts provide aggregate and annual deployment numbers and are segmented by region and venue type.

For a free sample contact Elaine Potter,; (480) 483-4441.

About In-Stat
In-Stat's market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets.

Contact Information

  • Contact:

    Amy Cravens
    Market Analyst
    E-mail: Email Contact
    Phone: (480) 483-4451

    Rick Vogelei
    Marketing Manager
    E-mail: Email Contact
    Phone: (480)483-4476