Wi-Fi (Wireless Fidelity) City refers to a service promoted to customers for city-wide Wi-Fi connectivity. The biggest difference between Wi-Fi City and a Wi-Fi hotspot is that Wi-Fi City is intended to provide seamless Wi-Fi connectivity city-wide, rather than in limited areas.
In order to best meet the increasing demand for Wi-Fi, the process to develop Wi-Fi City is being accelerated in many cities throughout China. Currently, this service is free of charge, but discussions regarding payment for services were planned after the Olympics.
However, the primary challenge of implementing Wi-Fi City still stems from the lack of a proper business model. There are four possible business models: 1) Charge for all the services; 2) Sell ads to pay for services; 3) Charge for broadband services; make narrowband free; 4) A combination of the models above. In-Stat surveyed Wi-Fi hotspot users and potential Wi-Fi City users regarding their interest in the city-wide service and in the business models outlined above. The results of the survey are presented in this report along with our analysis of the challenges that must be met to make Wi-Fi City a successful enterprise.
