Tuesday, January 12, 2010

UPDATE: Thoughts on Free Wi-Fi

1/12/2010

Good NYT article on what the airlines are doing with internet access on planes. I found it encouraging that most of the big carriers are moving forward with Wi-Fi installation. Also, found it interesting how Continental is approaching the topic: testing a full internet capability and an email/text messaging capability with DirecTV.

12/16/2009
UPDATE: "McDonald's Adds Free Wi-Fi to the Menu"

Well, not sure if it's a victory, but I think it might be. McDonald's, obviously, has a lot of presence in the marketplace. I might be more inclined to go into McDonald's -- hopefully, not to eat the food. The way I see it, if I am more inclined to spend more time at McDonald's, I assume more folks will, too. It will be interesting to see the McDonald's return on investment with this, and to see if others follow. I think McDonald's is going to reap benefits here, and it will be a case study for the "If you offer free Wi-Fi, they will come."

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June 2009

It's been a while since I have done any significant traveling, but recently I have been on planes and trains and staying at hotels. In the time since I last actively traveled, smartphones and netbooks have become prolific. I have one of each and with 3G connectivity I am never far from the network. But what about the free Wi-Fi revolution?

It kind of surprised me that businesses have yet to figure out the Wi-Fi mystery: if you build a FREE Wi-Fi network, people will come. The fact that businesses are still trying to charge for this service is kind of mind-boggling.

A good example is McDonald's. Walk into most McDonald's these days and right on the door is a sign advertising Wi-Fi. The catch is that they want to charge you for the service. When was the last time you saw someone pull out their laptop in McDonald's?

Another example is Starbucks. It's pretty difficult to drive more than a few miles these days and not drive by a Starbucks -- they are everywhere; the preeminent coffee shop in the world. But they still have not solved the Wi-Fi mystery. Sure, Starbucks has Wi-Fi, but it's provided by T-Mobile and AT&T and Starbucks wants to charge you for it. Now, to be sure, there are people in Starbucks coffee shops connected to Wi-Fi on laptops and smartphpones, but there probably would be more, buying more expensive drinks and snacks, if Starbucks provided Wi-Fi as a complimentary service.

How about hotels? Most budget and mid-scale hotel chains are now providing free Wi-Fi access, but the definition of access is open to wide interpretation. Some have great, four-bar access in rooms, while others advertise free Wi-Fi, but it can only be reliably accessed from the lobby. Upscale hotels are a different story with most still charging for this service. I find this silly and, all things being equal, avoid upscale hotels in search of free access to Wi-Fi when I travel.

I'm no frequent flier, but in the past few months I've been to airports in Jacksonville, NC, Charlotte, NYC, Flint, Milwaukee, and Chicago. If my brain serves me correct, all these airports offered Wi-Fi through the Boingo network, which appears to service many different airports. It's a service you must pay for. I'm on the fence here because you can't choose an airport like a restaurant, coffee shop or hotel, so from a capitalist perspective you have a captive audience and it makes sense to charge for the service. But as a consumer, I would like to see free Wi-Fi at airports.

A company named Aircell is currently fitting U.S. airplanes with Wi-Fi connectivity. By the end of this year, Aircell plans to have one thousand planes Wi-Fi enabled and is planning on having two thousand on line by the end of next year. The price to outfit each plane is roughly one hundred thousand dollars. Airlines are planning to charge for this service, with per flight rates for occasional travelers and monthly subscription rates for frequent travelers. Much like the airports, initially charging for this service makes sense. However, as more airlines come on line, this service should become a commodity. I know I would most likely choose to fly an airline that offered free Wi-Fi over one that did not. Airlines, are you listening...?

Wi-Fi on trains is spotty. Many business commuter rails are beginning to offer Wi-Fi, which is a good thing. But Amtrak provides Wi-Fi service only on some of its routes. I would think that eventually Amtrak will start outfitting more of its trains with Wi-Fi, especially since the airline industry is beginning to come on board. Time will tell.

In the short term, I can understand charging a nominal fee for Wi-Fi access in airports and on planes and trains, but as this market matures, Wi-Fi service should be expected for free. As for restaurants, coffee shops and hotels, Wi-Fi should be a "no brainer" complimentary service. If restaurants, coffee shops, and hotels are not already offering free Wi-Fi, they are probably already losing customers, and missing out on those that would come through the door for the free service.

7 comments:

Anonymous said...

I second that....

Anonymous said...

I agree. We have to go to Big Boy in Cheboygan to get free wifi, therefore, we eat breakfast there every weekend!

Anonymous said...

Free wi-fi? Try getting a seat in Starbucks or Panera Bread Shop on a work day in any metropolitan city. They're jammed with people who set up their "mobile offices" for hours on end and get 1 cup of coffee or 1 cup of soup so as to justify their "space." In an ideal world it will work, getting there is a pain...

Anonymous said...

The hotels that don't use free wifi as a differentiator probably cater to business travelers that have no problem slapping the $9.95 cost on the expense report.....like me. Have you checked this out yet -
http://www.wired.com/gadgetlab/2009/05/verizon-mifi-personal-wi-fi-coming-this-month/

Unknown said...

Good to hear from you. Hope you are well. Thanks for the comment. I'm looking forward to the "ideal world"...:-)

Unknown said...

Thanks for the link, I missed that article. Looks like a pretty cool piece of gear. You'll be happy to know that I refuse to use tax payer $$$ for wi-fi when I'm on gvmt travel... Great seeing you Sat night, thanks for coming.

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