Zapp WiFi Cabs
June 26th, 2007 by danFollowing on a cool wireless story where Zapp, Romanian CDMA mobile operator, launched a new service that WiFies Bucharest cabs! That’s a really schrewd move for mobility and innovation.
But I wonder what their ROI is. The business model is based on 10 minutes of free access then pre-paid card access. Given one would spend an average of 25 minutes in a cab, why would one buy a 1h card for just 15minutes? Yeah, ok, it’s good to have later on a different location, but…
I would assume it’s just an image push. (it works!).
Nevertheless cost per cab is:
- router – ASUS WL-500G w. USB port ~$40
- Z010 EvDo modem ~$20
- unlimited in-network airtime
ROI is thereafter obtained after selling ~50 $2/1h prepaid cards of roughly 30-40h usage. A week per cab, maybe, presuming clients buy the cheapest value card – http://zapp.ro/offer/data/zoe/zoecard/
Risks: nearby accidental users that would hop on the 10 minute free airtime. Probably 60% of actual usage per mobile hotspot. Not so bad as routers are set for DoD (dial on demand).
Related: I wanted to plant a hotspot in my car (a Smart ForTwo at the time) and brand it “free hotspot in range of this car”. Never took the time to do it. Envious!
Later edit: Virgil of yottablog goes further with the analysis here. Go read with confidence!
Posted in All Trends, All WiFi, All Wireless, Fun, Travel, c*free |
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