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An Overview of different Business Models for public Wi-Fi and their Implications on Indirect Revenue

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  • Kaiser, Tobias Werner
  • Verbrugge, Sofie
  • Van der Wee, Marlies
  • Colle, Didier

Abstract

The importance of public Wi-Fi for providing service to customers and mobile data offloading is steadily increasing. This paper aimed at analyzing the business model of select cases of customer-facing and municipal Wi-Fi networks with respect to physical setting, network ownership, service provisioning, (in)direct revenues, and cooperational benefits. Depending on the setting, different sources of indirect revenue can be identified, in particular with respect to the difference between customer-facing and municipal Wi-Fi. By comparing the cases according to these parameters, the paper concludes that successful public Wi-Fi projects make extensive use of cooperational benefits, as they reduce the economic difficulty of public Wi-Fi deployment by keeping costs low, increasing indirect revenue, and decreasing the likelihood of lawsuits against municipalities, therefore contributing to the formation of free municipal Wi-Fi. In municipal Wi-Fi, these benefits emerge as a result of the distinction between network owner and service provider. Instead of relying on tax-funded public service provisioning and possibly risking a lawsuit on the grounds of distorting competition, municipal Wi-Fi initiatives should therefore seek to cooperate with private ISPs.

Suggested Citation

  • Kaiser, Tobias Werner & Verbrugge, Sofie & Van der Wee, Marlies & Colle, Didier, 2017. "An Overview of different Business Models for public Wi-Fi and their Implications on Indirect Revenue," 28th European Regional ITS Conference, Passau 2017 169470, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse17:169470
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    References listed on IDEAS

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    1. Pieter Ballon & Leo Van Audenhove & Martijn Poel & Tomas Staelens, 2009. "Business Models for Wireless City Networks in the EU and the US: Public Inputs and Public Leverage," Contributions to Economics, in: Peter Curwen & Justus Haucap & Brigitte Preissl (ed.), Telecommunication Markets, pages 325-340, Springer.
    2. Srinuan, Chalita & Srinuan, Pratompong & Bohlin, Erik, 2011. "An analysis of mobile internet service in Thailand: Implications for bridging digital divide," 8th ITS Asia-Pacific Regional Conference, Taipei 2011: Convergence in the Digital Age 52326, International Telecommunications Society (ITS).
    3. Tahon, Mathieu & Lannoo, Bart & Ooteghem, Jan Van & Casier, Koen & Verbrugge, Sofie & Colle, Didier & Pickavet, Mario & Demeester, Piet, 2011. "Municipal support of wireless access network rollout: A game theoretic approach," Telecommunications Policy, Elsevier, vol. 35(9), pages 883-894.
    4. Spruytte, Jonathan & Van der Wee, Marlies & de Regt, Mieke & Verbrugge, Sofie & Colle, Didier, 2017. "International roaming in the EU: Current overview, challenges, opportunities and solutions," Telecommunications Policy, Elsevier, vol. 41(9), pages 717-730.
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    Cited by:

    1. Raman Singh & Zeeshan Pervez & Hitesh Tewari, 2023. "Blockchain-Enabled NextGen Service Architecture for Mobile Internet Offload," Future Internet, MDPI, vol. 15(5), pages 1-14, May.

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    Keywords

    public Wi-Fi; municipal Wi-Fi; cooperation; indirect effects; indirect revenue; business models;
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