Wi-Fi service providers

With all the excitement regarding wireless LAN or WiFi, there is still a great deal of doubt on how service providers will actually make money from this technology. While some service providers are simply testing WiFi, others have been really active in gaining the maximum benefit of starting early. WiFi service offerings and business models will evolve in a manner much like the cellular communications and the Internet did a few years back. But probably, this will happen quicker. Both technologies were once perceived as ?nice? but of ?not real value? to the end user. However today, they have become a part of the everyday business and personal lives of billions. It was not until these services established true value that people began to realize the potential.

There is no easy solution on how to build a profitable WiFi service. Companies must be able to shift from testing mode and be able to build true user value.

To do this, service providers must start building customer confidence. Pricing and payment play an important role in attracting users, building confidence and ultimately establishing long-term value. Many WiFi providers have subscriptions as the primary method for pricing. It works very well for users who have already decided that WiFi will ultimately be of value. However, if new users have to commit to a monthly and annual subscription before they have tested it, they are less likely to try the service. Pricing and payment models will continue to evolve. And with it, service providers must be able to change their pricing and business models. Currently with users unsure about the value of WiFi, service providers need to be prepared to offer services on terms that are suitable for different types of users.

Whether for consumer or business use, most users are still evaluating WiFi as an individual service. However, they are generally accustomed to other landline, wireline and wireless communications services that when packaged with WiFi, could deliver overall value.