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Wi-Fi Billing, Customer Care and Business Models Will Play a Pivotal Role in Revenue Generation
Yankee Group, The, June 2004, Pages: 18
The Wi-Fi service market is crowded with multiple types of vendors and service models. With fixed, mobile and broadband carriers all looking to capture customer wallet share, Wi-Fi hotspots continue to emerge across retail outlets, hotels, airports, train stations and even restaurants. Installing a hotspot is inexpensive, but generating enough revenue to drive profitability is quite challenging. Wi-Fi end users are exposed to highly variable pricing models, with some free access service points available in certain venues.
Wi-Fi’s greatest challenges lie in the relationship between the wholesale and retail providers and the ability to provide adequate billing and customer care support. Current models are simplistic and create weak ties between the retail organization hosting the service and the carrier or wholesale provider offering the service. Although U.S. carrier pricing models vary based on service type, most do not require a complex billing investment. European service providers demonstrate much greater interest in sales commissioning, revenue settlement and partner management initiatives, which can benefit both the carrier and the access point provider.
In this report, we review the status of Wi-Fi services in the United States, and the state of wholesale/retail relationships between Wi-Fi operators, service providers and retail establishments, and highlights the current billing and customer care successes and failures in the United States and Europe.
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