Hotspot Venue Growth Outpaces In-Stat/MDR's Previous Expectations, but Network Usage Still Lags.

Business Editors/High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Dec. 15, 2003

In-Stat/MDR (http://www.instat.com) has found that, while hotspot venue growth has outpaced earlier expectations, there are still troubling issues surrounding low usage rates. According to the research firm, over the past several years, hotspot venue availability has increased extraordinarily. Worldwide locations have grown from a few hundred locations worldwide in 2000 to 40,000 locations in 2003, according to In-Stat/MDR.

Yet, despite these successes in venue growth and the elevated awareness due to media coverage, usage of hotspots continues to lag. In-Stat/MDR discovered concerning usage trends in a study conducted of potential business users. The survey explored usage trends for Visitor Based Networks (VBNs), which includes both wired (such as a hotel guestroom broadband connection) and wireless (i.e. hotspot) public access service. While results showed that slightly over half of the respondents had used a VBN, it was found that the occasions of use were, on average, infrequent. In all venues, except hotels, the majority of respondents indicated only using hotspots less than 6 times per year and the average monthly VBN expenditure among users was only $12.10.

Other In-Stat/MDR findings include:

-- 62 percent of VBN-using respondents indicated that

availability of broadband would influence their choice of

venues to visit, but over half of those respondents indicated

that it would only affect their choice if access were free.

-- Incidence of usage was higher among those respondents that

travel away from their hometowns than among those that are

mobile within their home city (i.e. visiting client, partners,

etc.).

-- 93 percent of respondents that use a VBN while traveling

generally carry a laptop, and 60 percent of those that

generally carry a laptop have WLAN-access capabilities.

-- The majority of VBN users (71 percent) process the cost of

access through their company.

-- The availability of free broadband would impact a significant

percentage of users' choice to pay for broadband service.

The report Hotspots: Who's using them, when, where, and how often? (#IN030831MU), examines trends in the hotspot/VBN broadband public-access market. Forecasts (5 year) and primary research are featured. To purchase this report, or for more information, please visit: http://www.instat.com/catalog/pcatalogue.asp?id=70 or contact Courtney McEuen at 281-246-4668; [e-mail]. The report price is $3,495 U.S. Dollars.

About In-Stat/MDR

In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end-users.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (www.reedelsevier.com), a world-leading publisher and information provider. With over 38,000 employees worldwide, Reed Elsevier operates in the science & medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.