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Service Revenues for Hot Spots will Exceed $800
Million by 2007
The U.S. hot-spot service
market will exceed revenues of $800 million by 2007, according to
Public Hot
Spots: Moving beyond Road Warriors, the latest report from Parks
Associates. Based on consumer surveys and interviews with service providers,
Parks Associates estimates the 2003 service revenues for hot spots will be
$105 million. The compound annual growth rate (CAGR) between 2003 and 2007
is approximately 50%.
“Although these service revenues will be a very small
portion of total telecommunications revenues, the intangible benefits hot
spots can bring for both venue owners and service providers will still
provide investment incentives,” said
Yuanzhe (Michael) Cai,
research analyst with Parks Associates. “And as this market matures,
different market segments will start to use these services.”
Public Hot
Spots: Moving beyond Road Warriors divides hot-spot users into three
groups: business subscribers, broadband subscribers, and ad hoc
users. According to the report, in order to move this market forward,
service providers will have to develop different business models to
accommodate the disparate usage habits and demands of these groups.
“The majority of early adopters are business travelers,
and they will be a major part of the market for years to come. Companies
with prime venues and strong enterprise focus may see some early success,”
Cai said. “For the
market to move beyond road warriors, however, telecom carriers have to
bundle hot spots with their other communications services and provide
continuous support for this market. Most telecom carriers are likely to
follow Verizon’s suit and offer hot-spot services as a free amenity, but
they may also provide tiered services based on location and quality of
services.”
On August 7, 2003, 11:00 a.m. CST, Parks Associates
will host a
one-hour Webcast on the U.S. hot-spot market. For additional information
about the Webcast and the report
Public Hot
Spots: Moving beyond Road Warriors, please contact
sales@parksassociates.com or
call 972-490-1113.
About Parks Associates: Parks Associates is an
internationally recognized market research and consulting company specializing
in emerging consumer technology products and services. Founded in 1986, Parks
Associates creates research capital for companies ranging from Fortune 500 to
small start-ups through market reports, primary studies, consumer research,
custom research, workshops, executive conferences, and annual service
subscriptions.
The company's expertise includes new media, digital
entertainment and gaming, home networks, Internet and television services,
digital health, mobile applications and services, consumer electronics, and home
control systems and security.
Each year, Parks Associates hosts executive thought
leadership conferences CONNECTIONS™, in
partnership with the Consumer Electronics Association (CEA®), and CONNECTIONS™ Europe. In addition, Parks
Associates produces the online publication Industry Insights in
conjunction with the CONNECTIONS™ Conference series.
http://www.parksassociates.com |
http://www.connectionsconference.com |
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