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WiFi Hotspots to Cost Wireless Carriers $12B
j.e. writes "Commercial WiFi hotspots and open WiFi networks will take about $12 billion out of wireless carrier revenue pie, says Starategy Analytics. With high prices of mobile data services from wireless carriers, the users are more prone to use a cheap WiFi connection, if one is available."
This sounds like crap statistics if I've ever heard them. Cost $12 billion is a little different than "Won't make $12 billion because the services are overpriced."
That what was all this school was for... to teach us how to solve our own problems. -- janeowit
In other other news, when given a choice between otherwise highly similar products, consumers will choose to pay less money . . .
Do not touch -Willie
"With all these free radio stations people won't buy our records."
"With all these free movies on TV people won't go to the movies."
Having said that, cellphone service is nowhere near what it should be in terms of reliability and quality. How many of the main carriers allow you to do what you want with your phone (e.g. bluetooth restrictions in many phones) and your service (forward messages & voicemail via email, etc)?
Damien
97.576% of all statistics are inaccurate.
time is a perception of a being's consciousness
time is your 6th sense, the wierd ones are 7+
Get a better business model. Or better yet, just go away. Just because people want something, doesn't mean they have to pay YOU to get it. More and more, they may not have to pay at all (open WiFi access points, Linux, etc).
Step 2 is getting laws against free WiFi accessed passed in Congress.
Hey, it worked for the RIAA!!!
That's "Mr. Soulless Automaton" to you, Bub.
I thought the FCC gaurded the airwaves and held them in trust, for the American people? Does Joe and Sally Citizen need for the FCC to auction off the Bandwidth to the highest bidder? I think not. The sad part is all the hobbiest that are gonna get screwed, when the bandwidth they propogate is wanted for some other new technology. All this is is a sign that Joe and Sally Citizen are willing to do some grass roots, initiative type activities and spread the Bandwidth around.Screw the MAN!! so to speak, and for once utilize what is rightfully theirs. I understand that not all WiFi spots are opened purposfully and meant for use, but you cannot say that all of them are not meant to be so, either. I check for available spots before I go on any trips, and I keep Netstumbler and a few other tools with me always.
My cat's picked up a Hammer. HEY! Put down that Hammer. Put Down that Hamm...THUNK!
Poster forgot some words, it should read:
With the artificially inflated exorbitantly high prices of mobile data services from wireless carriers, the users are more prone to use a cheap WiFi connection, if one is available.
No sympathy for wireless carriers here, now they get to suffer for their own bad pricing plans...
"Wireless carriers will not earn $12B because better options exist."
Note: you can't lose what you don't yet have.
Interesting fact: you are not entitled to a profit. If your business model sucks, or if your product is too costly, it will fail. See also: airphones. Remember them? All gone now, because using cell phones (which everyone already has) before and after the flight is good enough.
Dear Slashdot: next time you want to mess with the site, add a rich-text editor for comments.
In other other other news, when given a choice between buying and 'infringing' of the 'net, slashbots will choose 'infringing'.
Having watched many MANY people gleefully tout their new "connected" "enabled" or otherwise crappified phone only to be disappointed by the utter lack of basic service requirements like convenience, reliability, ease-of-use, I can assure you the only thing that's costing them $12B is their lack of those three and a failure to understand what people really want. They want it all and they want it now and they want it free. WIth the proliferation of WiFi hotspots, they can get it... so... you can't sell snow to eskimos... whatever.
Besides it doesn't COST you $12B when you haven't spent $12B. duh!
I know. run-on. bad punctuation, but hey, you didn't pay to read this!
in other news, ISPs are paid money by people who provide free wi-fi
This should be +5 insightful, not funny. It is only a matter of time before some "media friendly" senator attaches a rider to an education package that bans open WiFi access. Or more likely, a Homeland Security bill because Terroists might use open WiFi links in an attack.
Where would we be if Wheel had hid her round rock in a cave instead of showing everyone how it rolls?
Tap water costs the bottled water industry billions.
"Learning is not compulsory... neither is survival."
--Dr.W.Edwards Deming
Should read, "WiFi to save wireless users $12B", or "WiFi to get up to $12B slice of wireless pie".
Not making as much revenue as predicted is not a "cost".
Lack of decent bandwidth and latency issues are costing wireless plans billions. WiFi's not the best thing on earth, but it sure beats the wireless broadband provided by Verizon. That money didn't belong to wireless providers to begin with. Another alternative could be that lack of hotspots costing WiFi programs billions since users are stuck with wireless in that case.
I'll believe wireless carriers lose $12 billion when I see their gross revenue actually drop by $12 billion. As our massive experience with file downloads and other things has shown, many if not most of the people who use a free service either wouldn't use it if it weren't free, or are already paying for the same service from someone else anyway.
I wish wireless carriers and others would grow up and quit whining when people figure out that their products and services can be had for free.
And free air, even the dirty air in our big cities takes probably 500 Billion if not more a year away from the Bottled Air business; there is one.. its just not large.
That they dont' tell you also, is that data used to be part of my Sprint Plan. Someone they removed it and now want to charge for data; I used 14.4 on Amtrack with my laptop to sync email in 2000; now they have fast speed and they want much more $$$.
Any serious business user is going to buy a business grade service. Meaning they are using it to make $$$ or the inverse, without it they loss sales, jobs, etc. Everything one else doesn't have a real need and yes, they are NOT going to pay huge sums for it.
http://www.hawknest.com/
Take the T-Mobile hotspot, for example. If you plan on using it a lot (and that's a lot of time spent at Starbucks), you can get away with spending a mere $29.99 a month. If you're not so sure, the price jumps to $39.00 a month, but you're free to quit. The price will jump even higher if you move to a per day or per hour plan.
Now take many local public venues (e.g. libraries, coffee houses, etc.) Many of these places will offer free access for their patrons. We have become quite spoiled by these free hotspots (I know I have, and I will prefer one of these places any time).
If there are more and more of these public access points offered, we will find more and more that, because of competition and free market forces, the price of WiFi access will plummit, possibly to near-zero. We (the consumer) just need to keep at it. If the technology is not profitable for businesses, wifi may become relegated to the realm of "promotional offer" or "advertising gimmick."
It's all a matter of perspective.
The casino gaming industry talks about its "earnings", not "winnings", or heaven forbid, its customers' "losses".
org.slashdot.post.SignatureNotFoundException: ewg
Or perhaps... "Small businesses entice customers with free WiFi and see $12B in increased revenue."