Wireless Data Hotspot Services to Reach $3.46 Billion in 2009

In a report entitled "Keeping it Hot: The Evolution and Acceptance of Hotspot Services," In-Stat projects that wireless data hotspot services will rise from $969 million in 2005 to $3.46 billion in 2009.

Amy Cravens at In-Stat said, "While the number of venues will continue to grow, the pace of this growth is expected to slow beginning in 2006 as the market begins to mature. While usage and revenue continue to grow, over time average pricing-per-connect will fall, due to declining pay-as-you-go pricing, increasing service subscriptions, and the increasing presence of free/amenity venues increases.”

In-Stat found the following:

• The largest sector of the hotspot market will continue to be the café market (including coffee shops, fast food, and full service restaurants), which will grow from just over 40,000 venues worldwide in 2004 to just under 100,000 venues by 2009.
• Much of the growth in the café/restaurant market will be characterized by branded deployments such as the Starbucks’, McDonalds’, and Panera Bread hotspot networks.
• For the past several years, hotels have offered broadband Internet access in guestrooms via wired connections, but many of these properties now offer wireless access in certain areas or throughout the entire property.