Cometa WiFi Hotspot Network To Shut Down
Glenn Fleishman writes "The folks who announced in Dec. 2002 that they would install 20,000 for-fee Wi-Fi hotspots across the U.S. within two years ago reached several hundred locations in 18 months before shutting down today. Cometa Networks was funded partly by Intel Capital, and had AT&T and IBM's involvement in building the network. The firm resold access to its network, and urged partners to charge low rates, like $3 to $5 per day or $12 per month for unlimited access. Cometa lost its best chance for a big network last month, when McDonald's picked Wayport to build out over 12,000 Wi-Fi hotspots in the U.S." There's now an official press release up, with the CEO noting: "We do not think this reflects on the strength of the Wi-Fi industry or value proposition."
This is no different then free web space, free storage, or free internet. All of these glorious ideas have fallen by the wayside when people realized they could not be profitable.
Welcome, WAP, to this cruel cruel world.
Fee, Fee Fee Foe Foe Foe....After rereading said post and getting some language lessons, I would like to strike my previous post from the record.
Good thing the story wasn't about applesauce and pork chops or I would have really been screwed.
http://jayceecorder.blogspot.com
Before even more people point out the flaws in their buisness plan, at least properly read the Slashdot post. It says for-fee, not for-free.
Ah, but you are only thinking of customers with laptops. I think McDonalds may be thinking of two other types of customers:
1. Customers with wireless PDAs who can very easily check mail while having a fast meal or even waiting in line.
2. McD employees with laptops. There was an actual article somewhere talking about how McDonalds managers roam among restaurants doing administrative tasks with their laptops and checking in with the mother ship. The wireless network is already a paid-for asset to the McDonalds internal corporate communications, so selling bandwidth to customers is just 3. Profit!!!