Hot Spots making money???

k8ur · 04-08-2005

I'd like to hear from ANYONE making money from a HotSpot...
I mean real money, not just paying for your AP and backhaul.

MobileStar was one of the first "HotSpot" providers and had a deal with American Airlines to light up their Admiral's Lounges in 130 airports. They got something like $6MM from Proxim in $ and gear, another $25MM from VC, did the deal with Starbucks - and then boom.... They burnt through all the money in 3 years - and sold out to T-Mobile.

T-Mobile got a bunch of sites for no money. They added Kinkos and Boarders Books (or was it the other bookstore...?), and I hear they are still losing money on every site. The sites don't even cover the connectivity costs.

Boingo and Sky Dayton thought they would become the clearing house for everyone spending money installing HotSpots, and I hear they have yet to make money.

So - My question is: WHO'S MAKING MONEY WITH HOTSPOTS?

I know a guy, (a wirless ISP) who tells me he is doing well; growing.
He's driving the same old piece of shit truck he drove 4 years ago.

mitch@aabroadband.com

streaker69 · 04-08-2005

Quote:

Originally Posted by k8ur

I'd like to hear from ANYONE making money from a HotSpot...
I mean real money, not just paying for your AP and backhaul.

MobileStar was one of the first "HotSpot" providers and had a deal with American Airlines to light up their Admiral's Lounges in 130 airports. They got something like $6MM from Proxim in $ and gear, another $25MM from VC, did the deal with Starbucks - and then boom.... They burnt through all the money in 3 years - and sold out to T-Mobile.

T-Mobile got a bunch of sites for no money. They added Kinkos and Boarders Books (or was it the other bookstore...?), and I hear they are still losing money on every site. The sites don't even cover the connectivity costs.

Boingo and Sky Dayton thought they would become the clearing house for everyone spending money installing HotSpots, and I hear they have yet to make money.

So - My question is: WHO'S MAKING MONEY WITH HOTSPOTS?

I know a guy, (a wirless ISP) who tells me he is doing well; growing.
He's driving the same old piece of shit truck he drove 4 years ago.

mitch@aabroadband.com

I AM. As a matter of fact I'm writing this message from my private island that I paid for from all the money I'm raking in from hotspots.

17hz · 04-08-2005

Quote:

Originally Posted by k8ur

I'd like to hear from ANYONE making money from a HotSpot...
I mean real money, not just paying for your AP and backhaul.

MobileStar was one of the first "HotSpot" providers and had a deal with American Airlines to light up their Admiral's Lounges in 130 airports. They got something like $6MM from Proxim in $ and gear, another $25MM from VC, did the deal with Starbucks - and then boom.... They burnt through all the money in 3 years - and sold out to T-Mobile.

T-Mobile got a bunch of sites for no money. They added Kinkos and Boarders Books (or was it the other bookstore...?), and I hear they are still losing money on every site. The sites don't even cover the connectivity costs.

Boingo and Sky Dayton thought they would become the clearing house for everyone spending money installing HotSpots, and I hear they have yet to make money.

So - My question is: WHO'S MAKING MONEY WITH HOTSPOTS?

I know a guy, (a wirless ISP) who tells me he is doing well; growing.
He's driving the same old piece of shit truck he drove 4 years ago.

mitch@aabroadband.com

Hotspots are not used to make money from those who use it. All of the success stories that I've heard regaurding hotspots are those who have allowed users to use the service for free - often needing to first go through a web page based portal that takes a survay of some kind, shows a few adds - and then allows you to use the hotspot for 24 hours before needing to go through this process again. This increases awareness of a company and services in the very local area.

I've got a friend who started up a restaunt in an off-the-beaten-path building closeby to a number of hotels. He paid what i would estimate to be around $3,000 per hotel to get wireless set up at them, and he pays the monthly internet charges... But in order to use the service you need to acknowldege his menu and the fact that he delivers until 2 in the morning; and you can place your order online....

He started this about 2 years ago: and his startup resturaunt is already in the black (ussually restaurants take about 3 years to make a profit); AND i saw him about 3 months ago driving a new car

If you think about TMOBILE, they may be loosing money on the hot spot business directly, but think about all of the advertisement space and brand awareness they've gained. They were a no-name cellular provider in my book until I started hearing about the hotspots... I don't use their service BUT I went out of my way to check out their prices and deals last time i renewed my cellular contract. I'm sure that the large increase in cellular users they've gained over the last 2 years have a lot to do with these hotspots; whether or not those cellular customers have ever used the hotspot service.

17hz

SignalSeeker · 04-08-2005

How is this a suggestion or request? It would fit better in the Hotspots forum or even Off-Topic.

wrzwaldo · 04-08-2005

Quote:

Originally Posted by SignalSeeker

How is this a suggestion or request? It would fit better in the Hotspots forum or even Off-Topic.

I have a suggestion...

I request that anyone that misses the proper forum this badly be banned from the planet.

G8tK33per · 04-08-2005

Quote:

Originally Posted by streaker69

I AM. As a matter of fact I'm writing this message from my private island that I paid for from all the money I'm raking in from hotspots.

And my post is from the island next to his, he didn't like me farting so I bought my own island. That and he turned on WEP.

G8tK33per · 04-08-2005

Quote:

Originally Posted by wrzwaldo

I have a suggestion...

I request that anyone that misses the proper forum this badly be banned from the planet.

Unfortunately we don't have a FuckNut forum yet. Meh..

beakmyn · 04-09-2005

I started one two years ago. That's my yacht over there with the two silver helicopters on the aft deck. My island won't be finished for another 6 months.

The Others · 04-09-2005

Anyone that owns a bar or coffee house that offers free wireless to it's patrons wil lmake a lot of money off me. Don't worry, I alone will eat and drink enough to pay for your connection charges. The other folk like myself will quickly buy enough espressos, cakes and beer to buy that place in the sun you always wanted.

hydro27405 · 04-10-2005

This hotspot will be up tp 200 monthly customers around June, it will also be put up to the top of the hill shortly, will be over 1200' at that point.
Lets see $40 per month on average times 200, I geuss you can consider that making money, plus I have another tower 8 miles from that one and cover 7 miles of river for boaters.

microserf · 04-20-2005

Back when Toshiba was pushing their "Toshiba Hot Spot" program, we were going to deploy it to LaQuinta Inns.. Not sure where that went, but basically, HotSpot money is made when the additional products/services are sold around it.. i.e. hotels offereing wireless broadband internet access to their customers.. that sort of thing..

Having the ability to provide that service "free" is a come on.. for Borders.. easy.. drink coffee, surf the web.. purchase a book perhaps. Same as for Starbucks.. the internet is the "come on", the additional coffee sales are the payoff.

Only time I saw an semi-innovative mix of food & internet was @ the Burger King located near times square.. They had a couple of internet access systems there, that you just paid for w. your meal, punch in a code, and get access...

Maybe Gatespeed www.gatespeed.com is making money. One of the principals from the company there was driving a nice Range Rover last time I saw him @ a meeting in the Bay Area. Of course, that could have been investors money he was rolling around in.

Airstreamer · 04-20-2005

Quote:

Originally Posted by microserf

Back when Toshiba was pushing their "Toshiba Hot Spot" program, we were going to deploy it to LaQuinta Inns.. Not sure where that went, but basically, HotSpot money is made when the additional products/services are sold around it.. i.e. hotels offereing wireless broadband internet access to their customers.. that sort of thing..

Having the ability to provide that service "free" is a come on.. for Borders.. easy.. drink coffee, surf the web.. purchase a book perhaps. Same as for Starbucks.. the internet is the "come on", the additional coffee sales are the payoff.

Only time I saw an semi-innovative mix of food & internet was @ the Burger King located near times square.. They had a couple of internet access systems there, that you just paid for w. your meal, punch in a code, and get access...

Maybe Gatespeed www.gatespeed.com is making money. One of the principals from the company there was driving a nice Range Rover last time I saw him @ a meeting in the Bay Area. Of course, that could have been investors money he was rolling around in.

$30.00 a month is NOT free.

Steve

Starpoint · 04-21-2005

Quote:

Originally Posted by microserf

Back when Toshiba was pushing their "Toshiba Hot Spot" program, we were going to deploy it to LaQuinta Inns.. Not sure where that went, but basically, HotSpot money is made when the additional products/services are sold around it.. i.e. hotels offereing wireless broadband internet access to their customers.. that sort of thing..

Having the ability to provide that service "free" is a come on.. for Borders.. easy.. drink coffee, surf the web.. purchase a book perhaps. Same as for Starbucks.. the internet is the "come on", the additional coffee sales are the payoff.

Only time I saw an semi-innovative mix of food & internet was @ the Burger King located near times square.. They had a couple of internet access systems there, that you just paid for w. your meal, punch in a code, and get access...

Maybe Gatespeed www.gatespeed.com is making money. One of the principals from the company there was driving a nice Range Rover last time I saw him @ a meeting in the Bay Area. Of course, that could have been investors money he was rolling around in.

There are a few places in Houston like that.. Hotels are picking up on it and there are a few coffee houses that offer free net access (wired and wifi) and all they ask is you buy a cup of coffee now and then.. (some offer free refills on the house brand so figure 2 bucks a night plus coffee? woohoo)

04-08-2005	#1 (permalink)
k8ur WISP entheusiast Join Date: Feb 2005 Location: MD Posts: 3	Hot Spots making money??? I'd like to hear from ANYONE making money from a HotSpot... I mean real money, not just paying for your AP and backhaul. MobileStar was one of the first "HotSpot" providers and had a deal with American Airlines to light up their Admiral's Lounges in 130 airports. They got something like $6MM from Proxim in $ and gear, another $25MM from VC, did the deal with Starbucks - and then boom.... They burnt through all the money in 3 years - and sold out to T-Mobile. T-Mobile got a bunch of sites for no money. They added Kinkos and Boarders Books (or was it the other bookstore...?), and I hear they are still losing money on every site. The sites don't even cover the connectivity costs. Boingo and Sky Dayton thought they would become the clearing house for everyone spending money installing HotSpots, and I hear they have yet to make money. So - My question is: WHO'S MAKING MONEY WITH HOTSPOTS? I know a guy, (a wirless ISP) who tells me he is doing well; growing. He's driving the same old piece of shit truck he drove 4 years ago. mitch@aabroadband.com

04-09-2005	#8 (permalink)
beakmyn root\.workspace\.garbage. Join Date: Aug 2003 Posts: 4,785	I started one two years ago. That's my yacht over there with the two silver helicopters on the aft deck. My island won't be finished for another 6 months. __________________ It's not Intelligent Design, it's peer pressure. ┌──────────────────────────────┐ ╞ NS Icons Explained\|et hoc genus omne ╡ └──────────────────────────────┘

04-09-2005	#9 (permalink)
The Others PeaceDriver Join Date: Apr 2002 Location: Dos Palabras, Mandoras Posts: 2,921	Anyone that owns a bar or coffee house that offers free wireless to it's patrons wil lmake a lot of money off me. Don't worry, I alone will eat and drink enough to pay for your connection charges. The other folk like myself will quickly buy enough espressos, cakes and beer to buy that place in the sun you always wanted. __________________ all good ends all ?u=273

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04-08-2005	#4 (permalink)
SignalSeeker Badger in heat Join Date: Jun 2004 Location: Sacramento, CA Posts: 415	How is this a suggestion or request? It would fit better in the Hotspots forum or even Off-Topic.

04-20-2005	#11 (permalink)
microserf Registered Member Join Date: Apr 2005 Posts: 1	Back when Toshiba was pushing their "Toshiba Hot Spot" program, we were going to deploy it to LaQuinta Inns.. Not sure where that went, but basically, HotSpot money is made when the additional products/services are sold around it.. i.e. hotels offereing wireless broadband internet access to their customers.. that sort of thing.. Having the ability to provide that service "free" is a come on.. for Borders.. easy.. drink coffee, surf the web.. purchase a book perhaps. Same as for Starbucks.. the internet is the "come on", the additional coffee sales are the payoff. Only time I saw an semi-innovative mix of food & internet was @ the Burger King located near times square.. They had a couple of internet access systems there, that you just paid for w. your meal, punch in a code, and get access... Maybe Gatespeed www.gatespeed.com is making money. One of the principals from the company there was driving a nice Range Rover last time I saw him @ a meeting in the Bay Area. Of course, that could have been investors money he was rolling around in.