FlyerTalk Forums - View Single Post - Admirals Club Mgmt: Why let T-Mobile Get Away with Murder?
Old Sep 2, 2003, 6:50 pm
  #13  
C17PSGR
 
Join Date: Apr 2003
Location: SLC/HEL/Anywhere with a Beach
Programs: Marriott Ambassador; AA EXP 3MM; AS MVP, Hilton Gold, CH-47/UH-60/C-23/C-130 VET
Posts: 5,234
Why not offer WiFi for free in the AC?

The cost to AA would be insignificant since much of the cost in WiFi is dealing with the billing/account management issues.

Would You Like Wi-Fi With That?

If wireless Internet access is such a hot technology, why is it such a dud business? Wi-Fi hardware, which uses radio signals instead of cables to connect computers to the Net, is already in more than 10 million laptops. But try to make a buck selling connectivity. Starbucks charges up to $6 an hour for in-store T-Mobile access - not much more than a double venti Frappuccino with a raspberry shot. Though its wildly successful overpricing works for coffee, it's failing with Wi-Fi. Demand for the service averages fewer than two customers a day per store.

...

If you want to see the right way to serve wireless access, find a Schlotzsky's Deli. The Austin, Texas-based sandwich chain figured out the secret of making money from Wi-Fi: Give it away. Schlotzsky's lets anyone sign up and use its network free, even if they don't come in for a sandwich. The chain advises its 600 franchise owners to beam Wi-Fi signals through the walls into nearby hotels, parks, and college dorms. Such complimentary access points are popping up everywhere, from Buck's, a roadside restaurant in Woodside, California, to the Portland Harbor Hotel on the Maine coast. And why not? Giving away wireless broadband saves on billing costs, attracts customers, and creates an instant competitive advantage. Buck's owner Jamis MacNiven, who serves buttermilk pancakes to some of Silicon Valley's top venture capitalists, has the perfect rap on the topic: "Charging for online usage would be like charging for salt and pepper."

http://www.wired.com/wired/archive/1...tart.html?pg=4
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