Hotspots: Who's using them, when, where, and how often?

SUMMARY

The hotspot market has gained a great deal of attention as an emerging market for broadband services and equipment. However, despite this attention and growth in hotspot venues available, the market continues to struggle in attracting users. In-Stat/MDR explores the current state of hotspot usage by investigating who uses this service, when, where, and how often. Analysis is based on an exclusive In-Stat/MDR study of business professionals. This report also includes a five-year forecast of venues, users, service revenue, and equipment revenue.

TABLE OF CONTENTS

• Executive Summary
• Methodology
  • Hotspot End-User Structured Research Survey
• Introduction
• Usage Levels
• Impact on Venue's Business
  • Factors Impacting Venue's Business
  • Research Findings: Impact on Venue's Business
• In-flight Access
  • Bird's Eye View
  • End-Users' Expectations for In-Flight Broadband
• Target Audience
• Equipment Availability
• Corporate Influence
• Provider Preference
• Payment/Revenue
• Threats
• Forecast
  • Location Growth
    • Asia Pacific
    • Europe
    • North America
  • Users
  • Pricing
  • Service Revenue
  • Equipment Revenue
• Conclusion
  • Drivers
  • Barriers
  • Success Factors
• Appendix

List of Tables

• Table 1. Hotspot End-User Structured Research Survey Respondents
• Table 2. On average, how often do you access the Internet at the following public locations?
• Table 3. Would you be more likely to visit a location (ex: a café) that offered VBN than one that didn't offer that access? Response rates among frequent travelers and frequent VBN users 14
• Table 4. When accessing the Internet at retail or café locations, do you...End-user behaviors, based on monthly VBN expenditures
• Table 5. In the next few years, broadband Internet access will begin to appear on longer duration flights (those lasting 3 hrs +). How much would you be willing to pay for the service? Segmentation based on time spent traveling and $ spent on VBN access
• Table 6. In the next few years, broadband Internet access will begin to appear on longer duration flights (those lasting 3 hrs +). How much would you be willing to pay for the service? Segmentation based on use of laptop and WLAN
• Table 7. Frequent Business Traveler Forecast-US Market, (in Millions) 2002-2007
• Table 8. What percentage of your time is spent traveling outside of your hometown/city for business? Segmented by laptop and WLAN use
• Table 9. Do you use a laptop when you travel for business away from your home city/town? Segmentation based on % of time traveling and $ spent on VBN access
• Table 10. US Business Traveler Audience with WLAN Enabled Laptop, 2001-2004
• Table 11. Is your laptop equipped for WLAN access? Segmentation based on percent of time traveling and $ spent on VBN access
• Table 12. Which one of the following best describes your company's position on VBN broadband access? Segmentation based on laptop and WLAN access.
• Table 13. Which of the following best describes how you pay for VBN broadband access?
• Table 14. Preference for cellular bundling based on respondent characteristics
• Table 15. Approximately how much is spent on VBN access per month?
• Table 16. Which one of the following best describes your company's VBN broadband access payment policy? Segmentation based on usage characteristics
• Table 17. Which, if any, of the following reasons describe why you don't have a monthly subscription for VBN access? Segmented by percent of time spent traveling and $ spent on VBN access
• Table 18. Worldwide Hotspot Locations, 2002-2007
• Table 19. Worldwide Hotspot Locations 2002-2007: Vertical Segmentation of Aggregate Locations
• Table 20. Asia Pacific Annual and Aggregate Hotspot Deployments 2002-2007: Vertical Segmentation of Annual Locations Deployed
• Table 21. Europe Annual and Aggregate Hotspot Deployments 2002-2007: Vertical Segmentation of Annual Locations Deployed
• Table 22. North America Annual and Aggregate Hotspot Deployments 2002-2007: Vertical Segmentation of Annual Locations Deployed
• Table 23. Growth in Total Users (in Millions)
• Table 24. Worldwide Hotspot User Revenues (US $ in Million) - Regional Segmentation
• Table 25. Hotspot Premise Device ASPs (US$), 2002-2007
• Table 26. Worldwide Hotspot Premise Device Equipment Revenue Forecast (US$ in Millions)
• Table 27. Average Number of Premise Access Devices Deployed Per Venue Type, 2001-2006
• Table 28. Asia Pacific Hotspot Universe
• Table 29. Europe Hotspot Universe
• Table 30. North America Hotspot Universe

List of Figures

• Figure 1. Which, if any, of the following locations have you used a Visitor Based Network (VBN)? (N=1211) If you have not use a VBN, do you plan to do so in the future? (N=598)
• Figure 2. Why don't you access the Internet at VBNs? (N=598)
• Figure 3. At which of the following locations have you used a Visitor Based Network? (N=613)
• Figure 4. On average, how often do you access the Internet at the following public locations: Summary of frequent and very frequent access (N=613)
• Figure 5. Would you be more likely to visit a location (ex: a café) that offered VBN than one that didn't offer that access? (N=613)
• Figure 6. Would you be more likely to visit a location (ex: a café) that offered VBN than one that didn't offer that access? Segmented by café, hotel, and airport
• Figure 7. When accessing the Internet at retail or café locations, do you...End-user behaviors, based on monthly VBN expenditures
• Figure 8. In the next few years, broadband Internet access will begin to appear on longer duration flights (those lasting 3 hrs +). How much would you be willing to pay for the service? (N=613)
• Figure 9. For in-flight connectivity, would you be willing to have a slower connection (I.e. 64 Kbps) for a lower access fee? (N=520)
• Figure 10. For in-flight broadband connectivity, how would you prefer to purchase access? (N=520)
• Figure 11. Which of the following best describes when you use public broadband locations?
• Figure 12. What percentage of your time is spent traveling outside of your hometown/city for business?
• Figure 13. What percentage of your time is spent traveling outside of your hometown/city for business? Segmented by $ spent on VBN access
• Figure 14. Is your laptop equipped for WLAN access? N=503
• Figure 15. Typically, is the VBN access that you use a wireless (Wireless LAN) connection or a wired connection?
• Figure 16. Which one of the following best describes your company's position on VBN broadband access? Segmentation based on $ spent on VBN access.
• Figure 17. Is your laptop issued to you by your company? (N=503)
• Figure 18. Which one of the following best describes your company's position on VBN broadband access?
• Figure 19. Which of the following VBN providers are you currently using? N=33
• Figure 20. Which of the following ways describes how you would prefer to be billed for VBN access in conjunction with another service you already subscribe to? N=613
• Figure 21. Which one of the following best describes your company's VBN broadband access payment policy? N=613
• Figure 22. Would the availability of free broadband in your hotel impact your access of the Internet at the airport or in-flight? N=613
• Figure 23. Worldwide Average Degradation In Hotspot Session Pricing, 2002-2007
• Figure 24. Worldwide Hotspot Premise Device Equipment Revenue Forecast (US$ in Millions)-Vertical Segmentation