Out-Law / Your Daily Need-To-Know

Most US and UK business travellers are not taking advantage of available Wi-Fi technology when travelling, according to Gartner. A new survey by the analyst firm blames educational, cultural and financial factors, rather than technological concerns.

Advert: Free OUT-LAW breakfast seminars, UK-wide: Marketing and advertising on the web; and Ownership and sharing of customer dataBasically, Wi-Fi offers broadband wireless access to the internet. Until recently, broadband access has been mostly offered over the copper telephone network (mostly using ADSL technology) or via cable TV networks with cable modems. Wi-Fi offers a complementary approach, for anyone within range of a so-called "hot spot," provided they have a suitably equipped laptop or other web-enabled device.

Hotels are the leading Wi-Fi hot spot locations, but in recent years, wireless data access has also been available on air, rail and sea transport for commuters and business travellers.

Gartner’s survey of over 2,000 business travellers reveals that only 25% of US and 17% of UK business travellers make use of these Wi-Fi hot spots, despite their growing availability in transit and inside transport terminals.

A solution seeking a problem?

According to the survey, respondents considered in-flight access to the internet and email less of a priority than comforts such as more personal space, bigger baggage allowance and better entertainment. Switching off can be nice: 78% of US travellers and 75% of UK travellers said that they welcome the chance to be out of contact for a while whilst in the air.

Even on the ground, 30% of US and 32% of UK travellers said that they have no need to use Wi-Fi hot spots.

"Whilst Wi-Fi has come a long way, our survey shows that many business travellers remain uncertain as to why they should use Wi-Fi, what equipment they need, how they can connect and what they will be charged," said Delia MacMillan, research vice-president at Gartner. "If Wi-Fi providers really want to attract new customers they must convince both end users and organisations of its benefits."

Of those who did make use of hot spots, the respondents were happiest with the speed of connection, ease of use and overall value. They were least happy with the price of the services and the limited availability of hot spots in useful locations.

"Many organisations will not reimburse their personnel for Wi-Fi access charges, as these fees are often not covered by their telecom contracts. If airlines can commit to lower prices then the provision of Wi-Fi access could prove a key attraction to business travellers," Ms MacMillan explained.

Financial issues overweighed worries about security in the survey with only 16% of respondents in both countries expressing concerns about security.

However, Gartner expects that the limited exposure to the technology among business travellers could change as mobile devices with built-in Wi-Fi radio antennas become more widespread. Additionally, the firm predicts that by the end of 2005, half of the laptop PCs in use will have Wi-Fi capabilities either built-in or added using PC cards.

Given the opportunity to use in-flight connectivity, half of those not currently using Wi-Fi said that they would be interested in sending and receiving email, while 68% of US travellers and 57% of UK travellers would be interested in accessing the internet for purposes other than work.

On the ground, two-thirds of the respondents who do use hot spots saw value in connecting to online services via Wi-Fi at least once a day when travelling. "Many respondents currently connect to Wi-Fi hot spots as a way to remain in touch with the office while travelling and make use of 'dead' time when waiting for flights," said Ms MacMillan.

3G's challenge to Wi-Fi

According to Gartner, Wi-Fi technology will soon face serious competition from 3G technologies, which may prove to be more cost effective for users who need frequent access to data.

But while the firm acknowledges that pressure from mobile operators who are trying to boost usage of 3G services will force providers of Wi-Fi hot spots to cut their prices, for occasional usage, hotspots are preferable to 3G.

"We are already seeing occasional travellers who don't need frequent access to data finding hot spots more cost-effective than a contractual commitment to 3G services. They are also able to find hot spots in places where 3G coverage is unavailable or unreliable," Ms MacMillan said.

Nevertheless, Gartner says that Wi-Fi has the potential to be an attractive tool for both entertainment and work, and could prove to be a good investment in terms of attracting business travellers and become a beneficial differentiator for airlines in a competitive travel market.

"Internet access is potentially much cheaper for airlines to introduce than other items such as more personal space, bigger baggage allowances or better entertainment," said Ms MacMillan. "Hot spot providers need to encourage usage by ensuring adequate, reliable connectivity and making it simpler for customers to connect and pay."

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