Home > Articles > Cisco Network Technology > Wireless/Optical/High Speed > The Business Side of Hosting a Hotspot

The Business Side of Hosting a Hotspot

  • Sample Chapter is provided courtesy of Cisco Press.
  • Date: Jan 12, 2007.

Contents

  1. Benefits of Hosting a Wi-Fi Hotspot
  2. Figuring the Costs
  3. Chapter Review

Chapter Description

Eric Geier explains the benefits of hosting a hotspot, such as generating additional revenue and attracting more people to your business or organization, and the associated costs of doing so. This will help you decide which type of hotspot is best for your particular situation.

Benefits of Hosting a Wi-Fi Hotspot

The overall benefit or goal of hosting a Wi-Fi hotspot at your location is being able to offer high-speed wireless Internet access there. In addition to satisfying the needs of connectivity for your customers and visitors, you and your staff can take advantage of having the Internet readily available.

Other benefits of hosting a Wi-Fi hotspot include these:

  • Attract people to your location
  • Generate additional revenue
  • Create a private network for your own use

Attract People to Your Location

Hosting a Wi-Fi hotspot, in any type of business, should attract new people to your location and entice them to return and stay longer. For retail stores such as cafés and bookstores, this access helps fill empty seats. For businesses such as hotels, having Wi-Fi Internet access available for guests might be essential to prevent losing potential customers.

As discussed earlier, people find hotspots in many ways, including these:

  • Online directories
  • Software directories
  • Display signs
  • Wi-Fi finders
  • Laptop/PDAs

Obviously, for people to find your hotspot in directories, you must submit your information. If you set up your hotspot to be part of a network such as Boingo or T-Mobile, your information would likely be listed automatically in their directories. You can also submit your hotspot to universal directories that list any hotspot, free or fee-based, whether it is independent or part of a larger network.

The best way to attract users to your hotspot is to display signs advertising that you have a hotspot at your location. These signs could simply say "Wi-Fi Hotspot Here" or "Wireless Internet Access Available."

After stepping you through installing and setting up your wireless network, Chapter 8, "Getting the Word Out," further discusses how to advertise your hotspot.

Generate Additional Revenue

While you are providing a convenient service to your customers and visitors by hosting a Wi-Fi hotspot, you might also generate some additional revenue for your business or organization. Here are ways that you can create some revenue:

  • Indirect sales of your products or services
  • Hotspot network commissions
  • Fees from an independent fee-based hotspot
  • Advertising revenue

Increased Sales of Products or Services

As mentioned numerous times earlier, hosting a Wi-Fi hotspot will likely attract many new visitors to your location. Getting more people in a store and enticing them to stay longer usually means you will sell more of your products or services. Thus, you should see increased revenue while hosting a wireless hotspot.

Estimating this potential indirect revenue is difficult for any business or organization. To start, ask yourself a few questions based on your particular situation:

  • Are your current customers or visitors the type who would sit at your location with a laptop and check e-mail or browse the Internet?—If your answer is yes or even maybe, the hotspot will likely attract people. If the answer is absolutely no, you probably should not be taking all this time to set up a hotspot that no one would likely use.
  • How many people do you think this hotspot would attract?—You should estimate the number of people, per month, that you think would visit your location just because of your Wi-Fi hotspot. Start by thinking about how many customers or orders you currently receive, and then estimate additional numbers.
  • Will hotspot users buy products and services?—You could rely on most of the hotspot users to purchase products or services. If your hotspot will be fee-based, you do not need to worry about this as much, because you will be paid through hotspot usage. When it comes to giving away free access, you probably want only paying customers or members of your organization to use your hotspot. For instance, in businesses such as cafés and restaurants, it is usually socially incorrect for noncustomers to use their restrooms. Therefore, people who use your free Wi-Fi hotspot will likely purchase your products or services.
  • How much will your revenue increase by hosting a hotspot?—By using information about your business or organization, estimate how much revenue you can gain from having a hotspot at your location. See the following case study for some ideas that will aid you in the process.

Hotspot Network Commissions

Keep in mind that when hosting a fee-based hotspot, you obviously have the potential to earn more direct revenue from the hotspot than if you were giving away free access. If you team up with a hotspot network such as Boingo, you will receive commissions. However, also consider that when hosting a fee-based hotspot, you typically will receive fewer users than if you were to host a free hotspot.

When you collaborate with a hotspot network, such as Boingo, it takes care of all the payments from users; you just sit back and wait for people to connect to your hotspot. Boingo keeps track of everything.

As of this writing, here is the commission structure that Boingo offers its hotspot partners:

  • Connect commissions:
    • - $1.00 per connect day for monthly subscribers
    • - $4.00 per connect day for "as you go" users
  • Sign-up commissions:
    • - $20.00 per sign-up for a monthly subscription

Boingo charges hotspot users $21.95 per month for unlimited access, with no contract required. These subscribers have access to more than 25,000 hotspots worldwide, in addition to one you might deploy. Boingo also offers people a 24-hour access period for a single hotspot, at $9.95. These people are called "as you go" users.

In addition to the connect fees, you would earn $20.00 every time a new customer signed up for the monthly subscription. The only requirement is that the subscription must last more than 60 days.

Now you should determine the amount of money you think you would receive each month from Boingo. See the following case study for some ideas.

Fees from an Independent Fee-Based Hotspot

If you will host a fee-based hotspot independently, without the help of a hotspot network like Boingo, you need to define your own pricing and terms. To help figure this out, refer to what others are doing. However, remember that because your hotspot is independent, people who join it will not receive the same benefits as if they were to join a network like Boingo. Big hotspot networks like Boingo have many more locations where users can connect under a single subscription. The user's ability to roam and the number of hotspots within the network should be one of the main factors you consider when determining your hotspot pricing and terms. The following case study gives you an idea of how to determine pricing for an independent fee-based hotspot.

Advertising Revenue

You can still make some direct revenue from hosting a free-access hotspot by selling advertising. The advertisements could be placed on the splash screen web page, which users would see at least the first time they connect, per session. Selling advertising is not recommended for everyone, because it can be time-consuming to make deals with local businesses and to set up the advertisements on your hotspot.

If you think you will be accepting advertisements, you need to think about pricing and terms for potential advertisers. Then come up with a ballpark figure of the potential revenue your business could generate from these advertisements.

Ability to Create a Private Network

After setting up a Wi-Fi hotspot, you can easily create a private wired or wireless network for use by you and your employees. The private and public networks can share the same Internet connection. Of course, this will not concern you if you already have a private network set up at the hotspot location. In this case, you can share the existing Internet connection between the private and public networks. If set up correctly, the private and public networks will be independent of each other, and your private network will be secured from the public.

Setting up your own private wireless network for your business or organization has the following benefits:

  • Mobility
  • Secure Internet browsing
  • Shared files and printers
  • Use of wireless devices, such as the following:
    • - Media adapters
    • - Presentation adapters
    • - Wi-Fi video cams
    • - Print servers

Just like Wi-Fi hotspots, having a wireless network for your business enables you to have mobility when using laptops and other Wi-Fi devices. You can access the Internet and print documents from anywhere within your facility. In addition, with Wi-Fi, you can move your desktop PCs anywhere within the coverage area, without the hassle of running ugly telephone or Ethernet cabling throughout the office.

You could use your own Wi-Fi hotspot to browse the Internet and perform online tasks. However, unlike private networks, Wi-Fi hotspots must be left unencrypted and unsecured so that the public can effortlessly connect to the hotspot. Anyone who has the right software and tools can see what you and others are doing on the web. People can also see passwords for services like FTP and POP3 e-mail. If sharing services are set up on your computer, people might also be able to browse your files and get into your computer.

On the other hand, people cannot easily see information being passed to and from secured websites such as online online banking and shopping carts, which normally use Secure Sockets Layer (SSL) encryption. As shown in Figure 2-1, Internet Explorer and other web browsers let you know if the website is using SSL encryption by displaying a padlock. Another hint is that websites protected with this technology usually start with https: instead of the regular http:

Figure 2-1

Figure 2-1 Example of an SSL Indicator

When your computers are on their own private network, you can securely use file and service sharing. Windows XP has built-in features that enable you to easily drag and drop files to and from the computers on your network. Windows XP also supports printer sharing. Without other devices, you can hook a printer to just one computer, and all the PCs on the network can use it, too.

Many Wi-Fi accessories are available that do some pretty neat things, and they are useful in many businesses and organizations. Again, you could supposedly use these accessories on your public hotspot, but the data would not be protected.

Wireless media adapters, such as the one shown in Figure 2-2, also called Wireless Media Players or Entertainment Center Extenders, can stream digital audio and video files from computers on the network to your TV and stereo. In a corporate setting, this is a great way to display your company logos, photos, and slide shows to customers and visitors. In cafés, you can use the remote control of the media adapter to browse and choose your media files, all from a TV. Some even support Internet radio, giving you a chance to listen in on a variety of music from around the world.

Figure 2-2

Figure 2-2 Linksys Wireless A/G Media Center Extender—WMCE54AG

Wireless presentation players, such as the one pictured in Figure 2-3, are extremely valuable for interactive presentations and conferences. One of the simpler advantages of this device is that it enables you to wirelessly connect to a projector or monitor from your computer to display to everyone your computer screen or your presentation. Some presentation players might even allow other wireless users to connect to the device and take over the presentation or display their screen on the monitor. This allows a group of people to quickly and clearly share their ideas and notes. With internal memory or removable storage, such as a USB flash drive, you could load the PowerPoint or other presentation files onto the player and make a presentation without a computer.

Figure 2-3

Figure 2-3 Linksys Wireless-G Presentation Player—WPG54G

Wireless video cameras, such as the one shown in Figure 2-4, are useful for video-conferencing and surveillance. You and other authorized users can "see what it sees and hear what it hears" from anywhere in the world via the Internet. Most cameras have a motion detection feature, which sends you an e-mail when the camera view experiences activity. Some Wi-Fi cameras even have a remote-control feature whereby you can change the camera view using its web-based utility. The quality of these Wi-Fi cameras differs greatly among manufacturers. Among other accessories, vendors might offer outdoor and ceiling enclosures for their cameras.

Figure 2-4

Figure 2-4 Linksys Wireless-G Internet Video Camera—WVC54G

2. Figuring the Costs | Next Section

Cisco Press Promotional Mailings & Special Offers

I would like to receive exclusive offers and hear about products from Cisco Press and its family of brands. I can unsubscribe at any time.

Overview

Pearson Education, Inc., 221 River Street, Hoboken, New Jersey 07030, (Pearson) presents this site to provide information about Cisco Press products and services that can be purchased through this site.

This privacy notice provides an overview of our commitment to privacy and describes how we collect, protect, use and share personal information collected through this site. Please note that other Pearson websites and online products and services have their own separate privacy policies.

Collection and Use of Information

To conduct business and deliver products and services, Pearson collects and uses personal information in several ways in connection with this site, including:

Questions and Inquiries

For inquiries and questions, we collect the inquiry or question, together with name, contact details (email address, phone number and mailing address) and any other additional information voluntarily submitted to us through a Contact Us form or an email. We use this information to address the inquiry and respond to the question.

Online Store

For orders and purchases placed through our online store on this site, we collect order details, name, institution name and address (if applicable), email address, phone number, shipping and billing addresses, credit/debit card information, shipping options and any instructions. We use this information to complete transactions, fulfill orders, communicate with individuals placing orders or visiting the online store, and for related purposes.

Surveys

Pearson may offer opportunities to provide feedback or participate in surveys, including surveys evaluating Pearson products, services or sites. Participation is voluntary. Pearson collects information requested in the survey questions and uses the information to evaluate, support, maintain and improve products, services or sites; develop new products and services; conduct educational research; and for other purposes specified in the survey.

Contests and Drawings

Occasionally, we may sponsor a contest or drawing. Participation is optional. Pearson collects name, contact information and other information specified on the entry form for the contest or drawing to conduct the contest or drawing. Pearson may collect additional personal information from the winners of a contest or drawing in order to award the prize and for tax reporting purposes, as required by law.

Newsletters

If you have elected to receive email newsletters or promotional mailings and special offers but want to unsubscribe, simply email information@ciscopress.com.

Service Announcements

On rare occasions it is necessary to send out a strictly service related announcement. For instance, if our service is temporarily suspended for maintenance we might send users an email. Generally, users may not opt-out of these communications, though they can deactivate their account information. However, these communications are not promotional in nature.

Customer Service

We communicate with users on a regular basis to provide requested services and in regard to issues relating to their account we reply via email or phone in accordance with the users' wishes when a user submits their information through our Contact Us form.

Other Collection and Use of Information

Application and System Logs

Pearson automatically collects log data to help ensure the delivery, availability and security of this site. Log data may include technical information about how a user or visitor connected to this site, such as browser type, type of computer/device, operating system, internet service provider and IP address. We use this information for support purposes and to monitor the health of the site, identify problems, improve service, detect unauthorized access and fraudulent activity, prevent and respond to security incidents and appropriately scale computing resources.

Web Analytics

Pearson may use third party web trend analytical services, including Google Analytics, to collect visitor information, such as IP addresses, browser types, referring pages, pages visited and time spent on a particular site. While these analytical services collect and report information on an anonymous basis, they may use cookies to gather web trend information. The information gathered may enable Pearson (but not the third party web trend services) to link information with application and system log data. Pearson uses this information for system administration and to identify problems, improve service, detect unauthorized access and fraudulent activity, prevent and respond to security incidents, appropriately scale computing resources and otherwise support and deliver this site and its services.

Cookies and Related Technologies

This site uses cookies and similar technologies to personalize content, measure traffic patterns, control security, track use and access of information on this site, and provide interest-based messages and advertising. Users can manage and block the use of cookies through their browser. Disabling or blocking certain cookies may limit the functionality of this site.

Do Not Track

This site currently does not respond to Do Not Track signals.

Security

Pearson uses appropriate physical, administrative and technical security measures to protect personal information from unauthorized access, use and disclosure.

Children

This site is not directed to children under the age of 13.

Marketing

Pearson may send or direct marketing communications to users, provided that

  • Pearson will not use personal information collected or processed as a K-12 school service provider for the purpose of directed or targeted advertising.
  • Such marketing is consistent with applicable law and Pearson's legal obligations.
  • Pearson will not knowingly direct or send marketing communications to an individual who has expressed a preference not to receive marketing.
  • Where required by applicable law, express or implied consent to marketing exists and has not been withdrawn.

Pearson may provide personal information to a third party service provider on a restricted basis to provide marketing solely on behalf of Pearson or an affiliate or customer for whom Pearson is a service provider. Marketing preferences may be changed at any time.

Correcting/Updating Personal Information

If a user's personally identifiable information changes (such as your postal address or email address), we provide a way to correct or update that user's personal data provided to us. This can be done on the Account page. If a user no longer desires our service and desires to delete his or her account, please contact us at customer-service@informit.com and we will process the deletion of a user's account.

Choice/Opt-out

Users can always make an informed choice as to whether they should proceed with certain services offered by Cisco Press. If you choose to remove yourself from our mailing list(s) simply visit the following page and uncheck any communication you no longer want to receive: www.ciscopress.com/u.aspx.

Sale of Personal Information

Pearson does not rent or sell personal information in exchange for any payment of money.

While Pearson does not sell personal information, as defined in Nevada law, Nevada residents may email a request for no sale of their personal information to NevadaDesignatedRequest@pearson.com.

Supplemental Privacy Statement for California Residents

California residents should read our Supplemental privacy statement for California residents in conjunction with this Privacy Notice. The Supplemental privacy statement for California residents explains Pearson's commitment to comply with California law and applies to personal information of California residents collected in connection with this site and the Services.

Sharing and Disclosure

Pearson may disclose personal information, as follows:

  • As required by law.
  • With the consent of the individual (or their parent, if the individual is a minor)
  • In response to a subpoena, court order or legal process, to the extent permitted or required by law
  • To protect the security and safety of individuals, data, assets and systems, consistent with applicable law
  • In connection the sale, joint venture or other transfer of some or all of its company or assets, subject to the provisions of this Privacy Notice
  • To investigate or address actual or suspected fraud or other illegal activities
  • To exercise its legal rights, including enforcement of the Terms of Use for this site or another contract
  • To affiliated Pearson companies and other companies and organizations who perform work for Pearson and are obligated to protect the privacy of personal information consistent with this Privacy Notice
  • To a school, organization, company or government agency, where Pearson collects or processes the personal information in a school setting or on behalf of such organization, company or government agency.

Links

This web site contains links to other sites. Please be aware that we are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of each and every web site that collects Personal Information. This privacy statement applies solely to information collected by this web site.

Requests and Contact

Please contact us about this Privacy Notice or if you have any requests or questions relating to the privacy of your personal information.

Changes to this Privacy Notice

We may revise this Privacy Notice through an updated posting. We will identify the effective date of the revision in the posting. Often, updates are made to provide greater clarity or to comply with changes in regulatory requirements. If the updates involve material changes to the collection, protection, use or disclosure of Personal Information, Pearson will provide notice of the change through a conspicuous notice on this site or other appropriate way. Continued use of the site after the effective date of a posted revision evidences acceptance. Please contact us if you have questions or concerns about the Privacy Notice or any objection to any revisions.

Last Update: November 17, 2020