Wednesday, June 30, 2004

Wireless Rapists

Every day in America (and probably elsewhere) folks bring their wireless portable computers (let's not call them laptops -- I've yet to see one on somebody's lap) to their favorite hang-out joint and hook up to the big internet world. And in most cases, they are mercilessly raped in the process.

But since they don't seem to care, and in fact signed up for the rapage, I can't really pity them. But that doesn't make it a prettier picture. That the rape is to their pocketbooks perhaps makes it more socially acceptable, as it can then be called "business".

T-Mobile and AT&T and others offer these subscription plans whereby you can gain access to wireless hot-spots they've set up. The plans generally run one of two ways: (1) you can pay an hourly rate, something typically like $6.00/hr. If you only need 10 minutes, that's $6.00. If you need 61 minutes, that's $12.00. This is for people who don't need regular use of these hot-spots. For folks who want unlimited access (i.e. when the hot-spot is open and the internet connection is working), you can pay something like $30/month flat.

Wow! That's a good rate! Unlimited use for the cost of 5 hours? Well, hold on algebra-breath; let's do the math here. What are you getting, exactly?

Most of these wireless locations just have your basic vanilla-flavored DSL connection. You know -- the same stuff you get from places like Yahoo/SBC for $29/month or thereabouts. If you have that, and spend $50 on a wireless router, you too can now host a hot-spot that can service something like 100 to 250 wireless computers.

Pretty cheap startup, eh? Now, if you're Boingo or T-Mobile or some such, you approach a likely place of business, cut a deal where you put in the equipment, and provide some minor revenue stream to the business. Now you can list this hot-spot on your web-site and brag about the hundreds of hot-spots you have.

So for the price of your very own DSL line, you can use these hot-spots. Probably very part-time. What a deal! And not only that, but these few hundred DSL lines get thousands of subscribers. That's like have 30 or 40 people each paying the full price of a DSL line, but they get to share the line with their extended wireless family. This is not quite the good deal it seemed to be, eh?

You use a fraction of the bandwidth, have to share it with others, and still pay the price of a personal DSL connection. OK, so there are these little computer gaming places, and often they charge something like $1.00/hour.

And then there's the places that just get it right. They eat the miniscule cost of setting up a wireless hot-spot and then give it away. Now let's see -- I can go to Starbucks and use their hot-spot all I want for $30/month, or go to my local coffee joint and pay nothing. All I want. Either way I'm getting a good cup o' joe, can sit outside and watch the humanoids, and write entries for my blog. Not a tough decision. I happen to be sitting at Swork right now writing this. And paying nothing to use their hot-spot.

So what do these guys have going for them? I mean, why do people sign-up and use these T-Mobile or AT&T services? I think the reason is just that they are visible -- you know they're there. Busineses offering free hot-spot access just don't have the marketing power. The funny thing is, everything the big boys say about their wireless hot-spots is true of the free independent spots -- there is no technical advantage. So all their advertsising could work in favor of the freebies, if people only knew.

There are two beneficiaries of free hot-spots: customers, and the business itself (and even nearby businesses). People will come to the free spot and hang there, and use local businesses for other things because they are THERE. Thus a free hot-spot is a business draw, and this could easily be made obvious to a business.

As the business itself is paying the small overhead for the wireless service, it would make sense for somebody to start a coalition with a very small membership fee collected from the business -- something like $100/year. For this amount, the coalition service could create a web site that makes it easy to find free hot-spots that are members. And could further do some advertising to let people know to come to the site to find the nearby free hot-spots.

Thus all the businesses benefit for very little money. By registering, businesses now get indirect advertising and a kind of visibility they wouldn't otherwise have, which would bring in more customers -- certainly enough to easily offset the cost of the listing service.

Frankly, with the cost of service so low, I think wireless access is kind of like restroom access -- you should just assume it is available because you're a customer of the business. Probably costs the business less than the maintenance of their restrooms!

If you are a wireless user, and you've paid for wireless service at a business hot-spot, would you like to know about local free hot-spots? Would you look for local locations, and try them out?

The only losers are the wireless rapists. And this doesn't bother me.

A. Biker


5 comments:

Bill said...

Right on man! I agree and I live in Missoula Montana. We have more free hotspots than your average town. If I owned a business I would provide wireless for free as it can only help business and it would cost me the price of providing a free newspaper every day.

Anonymous said...

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Anonymous said...

thats rape true rape.
6$ one hour. we are not buying gold are we. And very good point.

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