Wednesday, December 3, 2008

Actual Numbers on Paid Airport Wi-Fi Usage

Actual Numbers on Paid Airport Wi-Fi Usage

I’ve been trying for years to get real numbers about paid airport sessions and usage from Wi-Fi providers: Then the Miami-Dade airport authority just goes and reveals them all. Cool. A local paper reports that the the authority expects to net $700,000 instead of $900,000 as its share of service. The article says that the airport saw 12,500 sessions in September and 14,000 sessions in October, including pay-as-you-go users and roaming customers of Boingo, iPass, and T-Mobile.

The airport adjusted the price for service from $5 per hour and $10 per day to $7 per day and $20 per month during the summer, which accounted for some of the reduction in revenue, along with a drop in air travel.

We can run some numbers here, of course, as I’m having trouble with the math. If the airport is netting $700,000 on perhaps 200,000 sessions for the year (assuming that there was higher usage when travel was heavier, coupled with an increase late in the year), then their take is $3.50 per session net. It’s possible the reporter was mistaken, and this is gross revenue.

At $7 per day or $20 per month for half the year, that would mean that the majority of sessions were pay-as-you-go; a $20 per month user could represent 10 or 20 sessions. If you assume an average of $5 per session for pay-as-you-go (by taking into account monthly users and rates across the year), you need about 70 or 80 percent of my estimated sessions count. That would leave 40,000 to 60,000 sessions paid a buck a pop, if that, by Boingo, iPass, and T-Mobile.




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