Starbucks Ties Up With AT&T - A Suggested Business Model For Free Wi-Fi Connections in India
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Starbucks finally comes up with a deal with AT&T to offer Wi-Fi internet connection at more than 7,000 of its stores. According to the deal, the Starbucks customers shall have to sign up for the Starbucks Card Rewards Program to get a free access for 2 hours. However, AT&T customers, who visit Starbucks outlets, shall be able to access the internet at no extra cost.
It makes me wonder what might be preventing the Indian companies too to strike up such agreements. Today, wi-fi connections are available only at airports, really posh hotels and a few coffee shops. What hurts all the more is being charged too steeply for the same. I know, there have been incidents of people just getting into a coffee shop, surf the net and and just leave, without making a single purchase.But the point is, is charging to high for the internet connection the only solution?
Since I plan to work on the idea of implementing wi-fi internet connections in malls and coffee shops only (this is because these are the places that record most foot falls), I shall try to figure out a business model that shall help both the internet provider and the host while enabling the consumers to use wi-fi internet connection for free.
The very first thing that one needs to do is break even. Even if either of the internet provider and the so-called coffee shop (I think the model of a coffee shop can be replicated in a mall too) care to disregard monetary profits from this service, fast and uninterrupting internet connection works as advertisement for the internet service provider and it also helps in bringing in more customers for the cafe.
Advertisements is one of the surest way of getting revenues and I think free internet connection can be the bes reason behind targetting highly customized ads. I remember the free version of Opera coming with advertisement bar before.What do you say to the idea of the internet service providers coming up with custom-made browsers that is capable of showing ads in a small bar at the top of bottom of that browser, right from the provider’s servers. Now, any one who wishes to surf the internet in a shop shall be provided with a free copy of that browser and the browser shall be the only way of accessing the free wi-fi internet. It is an internet service provider (ISP) that can monitor your internet activities most effectively. Thus, it isn’t going to be a tough job to figure the kind of advertisements that can be targetted at the customers. I feel, this is one of the surest ways to recover the operating costs. Moreover, a rule of compulsory purchase could be made compulsory by making the serial number of the last purchase (that should belong to the same date) as the login information for accessing the internet.
So, what do you say about my suggestions? If there is anything more you could suggest, you are more than welcome to use our comments section.
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but why would i want to install another browser (or anything for that matter) on my laptop if all i need to do is to check my email?
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@ Apoorv
If you happen to frequent a mall that has wi-fi access and they ask you to install a different browser just for once so that you can access the internet for free for every other time you are at that mall, would you rather pay 50bucks per hour to access internet or decide to install the browser?