Public Wi-Fi Business Model is Changing

About 10 years ago, there were serious debates about whether public Wi-Fi hotspot networks could become a viable alternative to mobile broadband services. That might sound odd now, but it was a somewhat serious issue back then. In other words, the public Wi-Fi business model was seen as analogous to that of mobile broadband: user fees and subscriptions.

What ultimately happened

What ultimately happened was that public Wi-Fi access became, in part, a niche service for traveling workers and in part a retention tool for major cable and telco broadband providers. 

In its latter configuration, fixed broadband customers got "no extra charge" Wi-Fi hotspot access as an amenity for being a customer. The indirect business model was enhanced customer retention.

To some extent, Wi-Fi hotspot availability also creates a platform for service creation, in particular services mobile operators want to support, but not too much. Mobile VoIP is one example. 

The point is that the public Wi-Fi business model is changing, again. Where one might have argued that the business model was "fixed broadband customer retention and acquisition," the additional, and possibly more-important model, is as a major wireless access method and service platform.