AT&T Differentiates with Public Wi-Fi

Ina Sebastian | January 23, 2008, 09:01 AM

AT&T just announced some exciting news for its broadband customers – and public Wi-Fi models in general. AT&T broadband customers that subscribe to the 1.5, 3, or 6Mbps plans will be able to use the company’s public Wi-Fi network (AT&T Wi-Fi basic) for free. While the offer was initially only available to subscribers of the two highest-speed plans, it now only excludes the most basic broadband plan (768kbps).

The popularity of some new Wi-Fi enabled portable devices such as the iPhone or the iPodTouch have triggered more discussion around public Wi-Fi business models that do not just focus on providing access to business travelers.

Indeed there is an increasing group of nomadic users - I mentioned them in recent blogs – that seek broadband connectivity in their hometown, inside and outside of their home. They access public Wi-Fi daily or weekly, for leisure and work, and many of them (though less than half) are very young, compared to less frequent public Wi-Fi users. They are generally more willing to subscribe to services than less frequent users, however the majority still prefer free access… so innovative business models are important.

Occasional public Wi-Fi users are a great target group. They have less need for Internet access outside of the home, and are less willing to pay for services. When we asked them what would motivate them to pay, discounted access in a broadband bundle was a popular response, more so than with nomadic users that are more likely to be persuaded to get a standalone service. The option of free public Wi-Fi to those occasional users would not only be attractive for their access needs, it could drive more Internet use outside the home. Clients should contact me with any questions about public Wi-Fi users, or they can learn more here.

The most important factor however is BSP differentiation in this very competitive space of bundles and multi-play. I would consider switching my BSP if I could get a free public Wi-Fi with my new plan. Looking at the demographics of nomadic users in particular, it certainly makes sense to include free public Wi-Fi in the lower-price plans. And given the large number of college students in the nomadic group, AT&T could attract loyal customers and upsell them to higher-speed plans in the future.

So what does it mean to get free access to AT&T’s network? It is certainly not ubiquitous, but provides ample opportunity for access. The company has more than 10,000 US locations, very professionally operated by Wayport. Public Wi-Fi locations include coffee shops/bookstores like Barnes&Noble, many McDonalds locations, several airports, and a variety of other locations.