Separating Truth from Myths in the Market for Public Hot Spots
July 29, 2003, Dallas, TX ? While consumer awareness of hot spots has reached a fairly high mark, the market for these services has not grown beyond today?s business travelers, according to Public Hot Spots: One Truth and Two Myths, a new white paper released by Parks Associates.
This white paper offers consumer perspectives on public Wi-Fi hot spots, gathered from a recent consumer survey conducted by Parks Associates and included in the new report Public Hot Spots: Moving beyond Road Warriors. The survey asked Internet households about their usage history and interest in hot spots, as well as their work-related travel habits, and found that 90 percent of the people interested in using hot-spot services travel nationally for professional purposes.
?Road warriors and business travelers are likely to be the early adoptors of hot-spot services?the industry has that one right,? said Yuanzhe (Michael) Cai, research analyst with Parks Associates. ?However, the frequently quoted market inhibitors such as limited coverage and poor consumer awareness only tell part of the story. Service providers have to re-examine their value propositions and customer services. In addition, they should not overlook narrowband Internet users.?
Among the white paper?s conclusions is a challenge to the common industry ideal ?build it and they will come.? Whereas more than 60 percent of U.S. Internet households are aware of hot spots, only a small fraction have used the services. Also, broadband was not a differentiator in terms of interest in hot spots. Broadband and narrowband Internet users reported similar usage rates regarding hot-spot services, and the difference between their levels of interest in adopting the services is not overwhelmingly significant.
?There are a lot of conjectures and estimates about consumer demand for hot-spot services,? Cai said. ?Some of them make good sense, but some of them are purely myths. Our latest consumer research is designed to dispel some of the misunderstandings about the market.?
Public Hot Spots: Moving beyond Road Warriors examines the hot-spot value chain and forecasts future market development. The report includes a thorough examination of Wi-Fi? technology and hot-spot players and an analysis of supply-side drivers and inhibitors, all the way down to primary consumer data that pinpoints both the opportunities and challenges for this sector.
For more information on Public Hot Spots: Moving beyond Road Warriors, visit www.parksassociates.com or contact Parks Associates at sales@parksassociates.com or call 972-490-1113. To download the white paper Public Hot Spots: One Truth and Two Myths, go to http://www.parksassociates.com.
About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are ?digital? or provide connectivity within the home. The company?s expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.
Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, multiclient studies, consumer research, workshops, and custom-tailored client solutions. Parks Associates also hosts two executive seminars, both part of the Fall Focus series, and co-hosts CONNECTIONS? (in partnership with the Consumer Electronics Association) each year. http://www.parksassociates.com.
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