Canadians show substantial interest in paying for Wi-Fi, Decima study finds

Canadians interested in Wi-Fi access in public places such as coffee shops and airport lounges will pay between $4 and $10 for the service, and are more likely to pay for either one or two hours at a time, according to new research. These are two key findings from a survey done by Decima Research Inc. for Report on Wireless on Canadians’ use of and attitudes towards paying for public hotspot access. A majority (57%) of those who already access the Internet in public places or are interested in doing so indicate a preference for paying for service in increments of one hour or two hours. More specifically, 43% express a preference for one hour and 13% prefer to pay for two hours. It is worth highlighting the fact that the appeal of paying for Wi-Fi access in one- or two-hour increments is consistent across all demographic segments of the Canadian population, irrespective of household income, education, age group, or high-speed Internet access at home. Among survey respondents who indicated a preferred payment period, more than one-third (36%) said they would pay between $4 and $10 for the service. One in five (22%) would pay between $4 and $5 and 14% would pay between $5 and $10. As can be expected, those interested in a few hours of access were more likely to mention lower-end price points compared to heavier users. More specifically, users interested in one hour would pay approximately $6.50 for access whereas "heavier" users (anywhere from 24 hours to a full month) considered higher price points, averaging approximately $30 for access. Again, these preferences are consistent across demographic segments. When presented with three specific pricing options - a $25 flat monthly fee, $7 for 24 hours and $5 for two hours - the majority of those using or interested in using Wi-Fi chose either the flat monthly fee (45%) or the lowest priced option (29%). Only a small portion (2%) said the service should be free. The $25 flat monthly fee scenario is especially popular among Albertans (61%) and among students (57%). Survey findings reveal that 10% of Canadians already access public hotspots. The highest penetration is in Ontario and B.C., at 12% respectively, while the lowest is in Manitoba/Saskatchewan at 6%. Use of hotspots is also significant among younger Canadians where 17% of those between 18 and 34, and 13% of those 25 to 34 claim to access the Internet in public places. This compares to only 4% among those over 55 years of age. The survey also sought to gauge for what purpose - personal, business and both equally - Canadians are using hotspots. About one-third (32%) of current users said they use Wi-Fi for personal use, 21% indicated they use it for business purposes, and 32% said they use it equally for personal and business purposes. Current laptop, PDA and cell phone users with Internet access not currently accessing hotspots were asked their interest in doing so in the future "at a reasonable cost." Results show that fully 23% would be either very or somewhat interested and 17% "might or might not be interested." This 40% converts to a notable 13% level of interest when projected over the base of all Canadian households. Accessing Wi-Fi in limousines, taxis and other transportation methods is an emerging service. The survey sought to determine Canadians’ interest in using "mobile Wi-Fi." As might be expected, the number of people interested in mobile hotspot access is relatively low. Less than one-tenth (8%) of those with laptops, PDAs, cell phones and Internet access, or 4% of all Canadians, are interested in accessing the Internet wirelessly in limousines or taxis. Interest in "mobile Wi-Fi" is particularly high among Canadians interested in accessing hotspots in at least four-hour increments, among whom 32% would be either probably or very interested. It shouldn’t be forgotten that Canadians’ interest in wireless data services and mobile Internet from Canada’s mobile wireless providers was in the 3% range in its early days. The survey was conducted between November 13 and 23 through the Decima teleVox, a national omnibus telephone survey conducted monthly by Decima Research. Results of the survey are based on a sample of 2,008 adult Canadians and are accurate to within +/- 2.2%, 19 times out of 20. For more information on the survey or to purchase an executive summary and/or the research data tables, please contact Publisher Mario Mota at (613) 230-1984 or mmota@decima.com.

Canadians show substantial interest in paying for Wi-Fi, Decima study finds

News | December 3, 2003

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