racoma.com.phJ. Angelo Racoma on technology, economics, writing, problogging, and getting things done

I have some insights posted on WiFi Wireless on cafes’ WiFi-related business models:

I wonder whether WiFi-enabled joints get to recoup their investment in setting up hotspots at all, if their WiFi business model relies heavily on the sale of goods instead of selling the WiFi service itself. For instance, where I come from, most cafés rely on third-party providers for their networking needs, so only a fraction of the revenue from the WiFi service—such as prepaid card sales—actually goes to the café. And since I have an unlimited subscription with the provider, the café doesn’t earn from my access at all, save from what I order from the counter.

Sometimes I wonder if they get to earn at all from their having WiFi hotspots, or if this increase in revenue is only marginal. This is especailly so, with only a small minority of Filipinos having wireless-enabled laptops and gadgetry.

Still, having public WiFi is undeniably cool!

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