Hey all,
Anyone here know what is a reasonable sum to expect as revenue to be generated from a Wi-Fi hotspot in a cafe style location?

I'm interested in starting a few hotspots, but I need to know what is a reasonable amount to expect for this business venture.

Anyone here with resources or links (or first hand knowledge - better yet), please let me know!
Thanks.
Regards,
JEFF

Interesting question. There are quite a few Hot Spots here in Atlanta. Most charge between $7 dollars per hour. Some offer 24 hours for $15.

Now, after you take account for equipment cost, marketing cost, revenue sharing, etc. you're likely looking to realise ~40% of the total daily "take". That's before Interest, Taxes, etc.

Hot Spots are a money looser, especially when you consider whole cities are setting up metorpolitan scale networks. Afterall, we can't keep the politicans from all that money.

I don't like that business model. If I owned a cafe, I'd have a wireless hotspot for FREE for my clients. I think free wifi access will attract more customers. A cafe owner is in the business of selling food, drinks and cofee etc, not in the business of being a wifi provider.

Just as availabilty of broadband is a big determining factor in choosing a hotel, when I go out to eat or have a few beers, wifi access can help determine where I spend my time and money.

In Santo Domingo there are only tow hotspots in an easily accessible location. Both are free. One is in TGI Fridays the other in a major hotel. I ate an awful lot of buffalo wings at fridays my last few trips!

I have even started a list of wifi hotspots in the Dominican republic on a website. As I said above, not many listed. . . . . .for now. In fact when I encounter a business that has broadband internet, I may offer to install and configure their hotspot for free, so I will have more access to broadband wifi in the DR.

Given a choice between slow dial up access at an internet cafe or sitting at a bar drinking beer, flirting with the barmaid and using my own laptop with wifi card. . . . . .is a no brainer!

Unless you are boingo etc, I don't see pay wifi access points being a big profit center, heck I am not even sure it is a good idea for boing long term! I used to use paid access at airports and still do when I have to, but Jet Blue has free wifi at JFK and I am sure other airlines will be adding similar services. If Jet Blue and another airline have similar fares to the DR, I would still pick Jet Blue because of the wifi.

hi worknet, here are some calculations that we have used previously :

Investment in WLAN network
Single Acess-Point hotspot : $350 -$600 investment in WLAN hardware
Installation and service : $150 assumed

Investment in business solution for access control: $800 - $1200 Invest in system and computer

with $6 / h you can reach kind of a break-even point for ongoing cost with ~12-15h / month usage.

Potential Revenues- Price per WLAN Hotspot hour : $3,-- to $6,-- on average

Other than that, I would agree that the business model for a cafe is more to provide value-added service to the customers in order to sell more coffee etc. rather than increasing revenue. However for the short term I believe people will pay a little to gain easy access.
You could also link the hotspot into some roaming partners to allow the guests to login with their T-mobile username/ pw for example.

We are a networking company located at http://www.bescoit.com and are totally new on the internet. We have a lot of skill in terms of technical expertise and want to contribute to the online community. Can some1 guide?