Free versus Paid Hotspots

Hotspots are public venues like restaurants and cafes that provide Internet access for wireless users.

The myth is that Starbucks, McDonalds, and airport hotels dominate the scene and access generally requires a subscription or day-pass.

True hotspot users know, this is a total myth.

Free access dominates. Independent providers out number paid hotspots by 3 to 1. Free users out number paid users by 10 to 1.

Origin of the Myth

Starbucks was one of the first major chains to provide wireless service. When we talk to users, most equate hotspots to Starbucks. Starbuck's claims that 5,000 of their 10,000 locations offer wireless access. This coverage is huge, but insignificant when compared to the true number of hotspots.

www.Jiwire.com claims leadership as the information source for hotspots. Jiwire aggregated the data from many providers and claims to be the authority for hotspot locations. The data mostly merges Barnes & Noble, Borders, Starbucks, McDonalds, airport hotels, UPS, and Fedex locations.

Jiwire does not cover the free venues that out number the paid venues by many folds. Attempts to post free locations are simply ignored.

False Information

Jiwire does have partnerships with providers like T-mobile, Boingo, AT&T Freedom Link and others. Further, Jiwire distributes their database through Google, Yahoo, and MSN. Thus, the myth is supported by false data from all the major portals.

Based on this false data, one would conclude:

• Starbucks dominates hotspots.
• Wireless access at public venues generally require a fee.
• Most wireless users go to Starbucks.

These conclusions are all wrong.

Survey by City

Our door-to-door survey of Cupertino and Saratoga in California revealed 3 times more hotspots than those listed by Jiwire, Google, Yahoo, and MSN. All the missing hotspots are free hotspots. Users use these free hotspots more frequently than paid hotspots.

Our survey has expanded into more cities and the pattern continues to be the same.

The Hotspot Reality

If the pattern extends to the entire country, we would conclude:

• 70% of the hotspots are free. This compares to Jiwire's 20% free number.
• The free hotspots are growing. The paid hotspots are flat or declining.
• 150,000 hotspots exist in the USA, not the 50,000 reported by Jiwire.
• Frequent wireless users go to the free hotspots.
• Most laptop users at Starbucks are leaching from free, neighboring venues or using mobile networks at dial-up speeds.

Thus, Starbucks does not equate to hotspots. Independent, free hotspots dominate the market.

End the myth!