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    Free Wi-Fi does bring in business

New study shows positive benefits of providing free Wi-Fi in terms of sales and customer loyalty

By Guy Matthews, 24 Oct 2006 at 11:39

Wi-Fi users are disposed to buy goods or services from businesses that offer them free access, according to the results of a survey.

Research into the habits of more than 1,000 Wi-Fi users by www.free-hotspot.com reveals that 84 per cent of respondents are more likely to become customers of businesses that offer free access, with 96 per cent saying free Wi-Fi would draw them back to that location.

"Creating a sense of loyalty in both new and existing customers cannot help but increase footfall and therefore sales", said Joe Brunoli, VP of market development for Free-hotspot.com, which provides access services in places like hotels, shops and cafes in competition to paid-for hotspots.

But wireless consultant Mike Hijdra of 2Fast4Wireless believes the free Wi-Fi access model may be shortlived.

"I don't feel that this sort of service is going to stick around," he told IT Pro. "The next step for operators is UMA, or universal mobile access, where you get seamless logon and logoff from wireless access point to GSM. Once you've got cheap access in the office or home and then GSM when you step outside there's less reason to seek out hotspots."

He says that from an operator point of view, free hotspots will conflict with their attempts to make UMA popular. "Free hotspots rely obviously on advertising revenue, but if ad money isn't coming then they'll be gone," he believes.

Free-hotspot.com operates by offering a free service to users in return for viewing ads from sponsors.

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