By Ina Fried, 9 July 2003 07:05
NEWS McDonalds has this week announced a second trial of Wi-Fi access, announcing it has equipped dozens of restaurants in the San Francisco Bay Area with the gear its customers need in order to surf the web while wolfing down some Chicken McNuggets. Earlier this year, the company began offering service at 10 restaurants in Manhattan. However, the fast food firm is still trying to figure out what to charge patrons who want to use the internet and how to share that revenue with those that offer the internet service. Don Thompson, president of McDonald's West Division, said: "The most important part is, 'Is this relevant to our customers?' If that's the case, then we'll deal with the revenue sharing." In San Francisco, McDonald's plans to charge $4.95 for two hours - should anybody actually want to spend that long in one of their restaurants - although the company will offer deals that give people some access if they buy certain meals. Also, those who subscribe to the provider, Wayport's network will also be able to surf at McDonald's using their existing service plan. So will those who have roaming rights on Wayport's network, including customers of Verizon Wireless, AT&T Wireless and iPass. McDonald's plans to have more than 75 Bay Area restaurants ready to serve up the net in short order, with most up and running in the next few days. Analysts have questioned the business model behind equipping vast numbers of retail spots with wireless internet access. Ultimately, though, McDonald's sees Wi-Fi as a way to sell more meals, not as a way to get into the internet business. "What we're banking on is that more customers will visit McDonald's," Thompson said. However, whether the customers who use McDonalds are likely to prove to be the kind of people who need to get out their laptop and do some work is yet to be seen. Mark Jamison, senior director of strategy and business development at McDonald's, said: "We're really good at selling hamburgers. We're not good at predicting technology." Ina Fried writes for News.com
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1. Justin Wheatley
The future is cash machines!
Well, not exactly. I don't suppose that banks will actually go so far as implanting a Wi-Fi hotspot in their wealth of ATMs, even if the otherwise wasted bandwith of their connection might be better used... But I think that in just the same way as banks rolled-out the cash machines all over the world, there's a strong case for the home ISPs to do likewise with Wi-Fi.
Most will recall how banks clamoured to up the figures of ATMs available whilst toting these figures in the war to gain customers. The final result was almost inevitable - that there would be a handful of successful groups who had pooled their resources with reciprocal sharing agreements. The customer wins because he has the most ATMs at his fingertips, and the banks get away with the least investment possible per number of ATMs made available to their customers.
As bars, restaurants, libraries, shops, airports and so-on build-up these small armies of Wi-Fi hotspots, I can well imagine the likes of AOL, Wanadoo, and so-on building relationships with them, and membership of one such ISP will allow you use of their partners' hotspots wherever they may be found.
I hope it works this way, anyway.
And banks, how about that ATM-WiFi idea?
Justin.
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