Could Yahoo induce a new Google WiFi plan?
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If you believe that Yahoo is entering the WiFi market, you might be right… or wrong, as up to now, it’s nothing but pure speculation. Besides this debate, there is the question of what business model is the best for WiFi hotspots. And answers get usually distributed into three dimensions: all free; ad-supported; or paid access.
Question: What if Yahoo with its free WiFi access only for VoIP leads to a fourth business model?
Let us remind you the WiFi evolution. At first, analysts thought that accessing the Internet through a hotspot was very valuable, so that should charged and monetized. And oops, that was a mistake. So the WiFi business model shift to another direction. Hotspots were set free, so they would drive tech-savvy customers to a specific place and get them into other services. Coffees, for instance, but also music, digital music player or video games.
Messed up by VoIP
This, of course, works and keeps doing well. Until now, until VoIP era, where ISPs are somewhat accused to block VoIP ports because Internet telephony consumes too much.
Another weakening factor to the all free WiFi: city councils. One by one, the major cities want to deploy free wireless networks across their metro area.
Free access is great, it might even fill the digital faster than expect, but it’s not very valuable for a private sector company. Remember Earthlink teaming with Google for the free San Fransisco citywide area. Now that the two partners won the contract, Earthlink CEO Garry Betty said he doesn’t believe in free ad-supported WiFi access. In an interview to the WSJ, it said that it would be hard to generate the $7 per month per user needed to break even.
Fourth way
But Yahoo and its virtual “On-the-road” offer, or Skype and its Skype zones service are bringing some fresh ideas. What if Internet wireless access remains free just for specific and casual use such as VoIP? And that full access will be charged?
OK, it won’t help media and data converge faster, but who cares? Business men already pay for WiFi access. Ordinary people, those who don’t understand any D.H.C.P. nor S.S.L. tech jargon ask for practical services that they can use every day. And making cheap phone calls belong to this category, while saving some costly bandwidth…
Fon is the most likely to add such a functionality. Currently, its business model lets wireless router owner choose between Linus and Bills level, between sharing for free or charging for accessing their hotspot. Fon could apply another filter, situated between Linus and Bills level: Letting owners decide what use they want to charge.
Agree, angry, or discontent with this idea, let us know your opinion.
Apr 20, 2006 | By Nuno
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