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."

Comments

Hmm.

[James A. R. Joyce]

Well, as much as I love WiFi hotspots and being able to walk into a coffee shop with my laptop, handing out free WiFi probably isn't the best business model. Especially relatively unregulated like this. Imagine if someone had actually abused it!

Re:Hmm.

[Stigmata669]

handing out free WiFi probably isn't the best business model

I disagree; handing out free WiFi is a great business model, it's just that the wrong business is providing it. Instead of some corporation trying to make money by setting up large networks of hotspots, local coffee shops(or even chains) should spend $60-$100 a month to get a DSL line and WiFi router (I know the Speakeasy TOS allows for this) and let the local patrons use it for free. Coffee shops and cafes are favorite places to do work and relax and making the atmosphere/conditions more desirable are well worth the cost.

Worried about freeloaders? Then change the password on the AP every day, and print it on every receipt. Seems like a great business model to increase your customer base as a cafe.

Re:Hmm.

[grozzie2]

I disagree; handing out free WiFi is a great business model,

Finally, somebody that understands the concept. Wi-fi is not a business unto itself, it's a value add service that is part of the package for a real business. Take the coffee shop example, who wants to spend 10 bucks to get online for 20 minutes while you drink a coffee you bought for $2 ? It doesn't make sense. On the other hand, the coffee shop owner that has wi-fi in his coffee shop will have more traffic.

For this business though, wide open access doesn't really do the job, because it allows non customers to use and plug up the internet pipe, which is why you need a controlled access sytem of some kind, ie a captive portal setup. problem is, mention 'captive portal' to your average coffee shop owner, and thier eyes go all glossy.

I've installed a couple of these for clients, and they love it. A simple appliance that they can use to control who uses the hotspot, but it doesn't have the fees associated with it like the mainstream ones do, ie no subscriptions. One client gives away the tickets to anybody that buys a meal, and the other one is selling them for a buck. They just printed off a bunch of the access tickets it generates, and keep em at the cash register.

Wi-fi is a value add to an existing real business, and most of the hotspot chains are realizing that. There's a lot more of them showing up on fuckedcompany.com than there is showing up in forbes....

And Once again.

[jwcorder]

We see that free free free does not work unless there is some viable way to make money money money.

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.

Re:And Once again.

[Hiro Antagonist]

We see that free free free does not work unless there is some viable way to make money money money.

Right, so car dealerships should charge people for those hot dogs they give out on Sunday, and all those grocery stores that draw business using freebie promotions should stop, because it doesn't work.

Except it does. When your business model revolves around nothing but giving away crap, then yes, you are screwed. When you use free crap to leverage non-free crap (coffee and sandwiches), then you have what we know as an 'advertising expense'. $200 a month for a WiFi hotspot near a business park or university could easily earn ten times that back in increased customer flow.

People with laptops have spare change, usually, and are not likely to sit at a cafe for four hours and *not* purchase a few cups of coffee.

Contracts

[DigiShaman]

Will make ya, or break ya. Sometimes profit is based on pure luck.

A Better Plan

[tomwhore]

1) Educate folks to build free community wireless netowrks

2) Help them build it

3) Tie them togther

4) Enjoy

Personal Telco Project

"Making tomorrows today yesterday"

Re:A Better Plan

[FattMattP]

Feel free to set me straight if I'm misguided, but the problem with community wireless networks is the liability that you open yourself to. There was a story yesterday whose comments talk about that liability.

Re:for fee is different than for free

[Anonymous Coward]

I don't understand how they expected people at McDonalds to pay for WiFi, it's like selling Ferraris at Wal-Mart...

Remember most people at MCDonalds don't own a laptop, and if they do, they dont take it with them when they are eating.
And this case says it all about the intelligence of the average McDonalds customer.

RTFWU

[gblues]

(Read the F***ing Write Up)

The hotspots were for fee, not for free. They were charging for wi-fi access.

Nathan

An issue arising

[gphinch]

One problem we're going to have to deal with is that unless all hotspots are united under one brand, it's going to get kind of annoying to have to pay subscription fees to each different place you want to use, ie: $15 a month to Starbucks, $15 a month to McD's, $15 a month to Candlestick park. I'm against monopolization of any industry, but I'd take it here over having to subscribe to a different place everywhere I went.

Free Fees and you and me

[tomwhore]

There are services that cost money to provide that are given away and the cost recouped either indirectly or as a markup in the overl price of other goods and services being offered.

With Free Community Wireless Networking the cost of backhaul and Equipment to cover a small area (commercial frontage, public use space, dwelling) can often be either recovered by increased biz or absorbed as the cost of being a good neighbor.

Just as Movie Theaters saw dramtic increases in summer time viewers with the inclusion of Air Conditioning so too are some biz and public spaces finding an increase base of use withthe draw of Free Wireless.

Living in Portland OR and being a part of the Personal Telco Project I can say this as a proven fact and not simply as some slashrot debate point. The places where we have nodes are seeing marked increases in their customer base. Several places we have put nodes in have become social centers for nomad laptop workers.

The problem with the Fee plans are that they simply will not wake up to the fact that customers will not pay for something that will quickly be seen on par with Lighting, AC, a glass of water, background music and those cool drink umbrellas.

Wake up Biz People....The writting is not only on the wall its on your bottom line.

We need wifi roaming.

[autopr0n]

Maybe if these places charged, for example $3/month or something it wouldn't be a big deal, but $12/mo for access to just one hotspot? Seems a little off to me, I mean sure buying access for one starbucks probably gives you access to all, but other starbucks employees, who's going to care?

What we need is some sort of profit sharing system, similar to how the cellphone system works. And it should be an open system, so that anyone can sign up to be a part. It would also be great in that anyone could make money simply by signing up and setting up WAPs, without worrying about how they are going to bill people.

And let me apologize, I don't have access to a spellchecker right now.

5.) Watch them get booted by their ISPs...

[ragingmime]

...who usually have policies against this kind of thing. See Comcast's here (look at item ix). (If you were thinking of having them get some kind of business-quality connection that would allow that, remember that someone has to pay the bills for that. Maybe I'm being too cynical here, but the idea just doesn't seem very feasible.

Chunks of debris

[Graymalkin]

I wouldn't be surprised but would be disappointed if Cometa's network was bought up by Wayport and T-Mobile. After using both services I've been left with a bad taste in my mouth for fee-based WiFi access. Both groups charge exorbitant amounts of money for access. Wayport charges $6.95 at most airports for unlimited access from the time you purchase until midnight, T-Mobile wants $9.95 for 24 continuous hours of connectivity. For month-to-month access Wayport charges $49.95 and T-Mobile charges $39.95.

If you bought access for a large group of travelers or were somehow able to use the hotspots for all of your high-speed access needs the prices might not be so bad. For me and I'd assume a lot of other people that is way too much damn money. I might be willing to pay $12 a month for unlimited access but there is no way I'd fork over more than $20 a month. I've got WiFi access at my house with a faster connection than most hotspots I've come across.

I'd sign up for a month-to-month contract is a heartbeat if it offered wide coverage and a low monthly cost. As it is I rarely use WiFi hotspots because of the price and inconvenience. It is really nice to be able to use WiFi internet access but I'm fine just listening to shared iTunes playlists.