Both of Australia’s major telcos recognise the growth potential of wireless technology and are aggressively expanding WiFi networks in an effort to gain more consumers, or build the outlay of existing customers.
According to Telstra WA senior corporate affairs adviser Andrew Gaspar, the WiFi market is an important growing source of revenue.
“It’s too early to forecast the impact for Telstra, but some analysis of international activity shows that the global market could be worth in excess of $9 billion by 2007,” Mr Gaspar said.
As more people invested in laptops, which were now fitted with wireless technology, the market would continue to grow, he told WA Business News.
“Approximately 500,000 laptops are replaced each year in Australia,” Mr Gaspar said.
“As all new generation laptops will be WLAN-enabled, the potential market is already strong and growing quickly.”
Optus Corporate Affairs manager Claire Hosegood said Perth was an important market for the telco, which was actively seeking new sites to establish ‘hotspots’.
“Basically we look for ad-hoc places where business people meet and work,” she said.
Local cafe operator, Caffissimo, is a beneficiary of Optus’s expansion plans.
Caffissimo proprietor Mike Barr said he was approached last year to trial the technology at his West Perth cafe.
It’s been such a success that he has agreed to install Optus WiFi at three new stores and is considering more.
Those stores are located in Fremantle, the Australian Broadcasting Corporation’s new offices in East Perth, and at the Art Gallery of WA.
Joining Caffissimo in a roll-out is McDonald’s, which will began installing Telstra WiFi technology to 12 stores this month.
Those will be company owned stores in Beldon, Belmont, Duncraig, Innaloo, Kwinana, Midland, Perth (Forrest Place, corner Hay and Barrack streets, William Street), Rockingham, Wanneroo, and Warnbro.
McDonald’s Australia marketing manager Western Australia Glenn Donaldson said the decision to roll-out WiFi was based on meeting future communication requirements of customers.
“It’s a way of attracting many customers who are business people on the move,” he said.
“This is about meeting the future communication needs.
“It will be rolled-out to company stores first and then to licences from November. There are some limitations but for those who can get it, it will be completed by July 2005.”
However, to use the service customers must register with the telco company providing the service and pay a range of costs.
Telstra mobile post-paid customers can use the service by entering their mobile service number. The costs of using the hotspot are added to the phone bill.
Other customers wanting to use Telstra at Perth cafes, hotels or the airport can access the service by registering and entering credit card details.
Optus requires all users to register, selecting either casual or monthly plans, and are given a password for access.
The Internet usage is then charged to a credit card.
Local tech players believe the consumer-pays concept will be short lived, suggesting many consumers will not want to enter credit card details on the go.
Unified Business Systems project manager Julian Coyne believes options such as renting the infrastructure provide a cost-effective way of providing the technology free for customers.
“It’s very affordable,” he said.
“Customers can rent the WiFi facility for about $200 a month and they can treat that as a business expense rather than an outlay.
“They then need to pay for the ISP costs, which is the bandwidth, and those costs have come down in recent years.”
FAST FOOD WiFi
McDonald’s outlets to be fitted with WiFi, starting this month through to year’s end.
- Beldon
- Belmont
- Duncraig
- Forrest Place
- Innaloo
- Kwinana
- Midland
- Perth, cnr Hay & Barrack st
- Perth, William St
- Rockingham
- Wanneroo
- Warnbro
WI-FI CAFES/RESTAURANTS
Free
C Restaurant - St Martins Tower, 44 St Georges Terrace, Perth
Cino to Go - 182 St Georges Terrace, Perth
The Grind Cafe - Trinity Arcade, Perth
With Telco Deals
Caffissimo - West Perth (Optus)
Delifrance - Hay St, William St Perth (Optus)
Gloria Jean’s Coffees - Murray St, Perth (Optus)
McDonald’s - 12 sites by the end of the year (Telstra)
Qantas Club - Domestic & International airports (Telstra)
Rydges Hotel - Perth (Telstra)
