Feed yourself!
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 Wireless, All WiFi, All Trends, Travel, Fun, c*free | 
June 27th, 2007 at 9:34 am
It would cost more for Zapp to advertise in a cab, than to actually provide the WiFi service (even for free).
It all boils down to clever advertising :)
June 27th, 2007 at 11:52 am
i agree ;)
June 27th, 2007 at 3:44 pm
[…] 27 Jun 2007 Zapp enters on the Wi-Fi market Posted by vv under Profuse ado about business According to latest news, Zapp now offerswireless internet access in 100 Fly Taxi cars. The first thing that comes into my mind is “how much does this cost, and what is their ROI”? Interestingly enough, according to an article in Cotidianul, Zapp refused to comment on the costs. But I’m curios, and I’ve searched around to find out. First info - WirelessFun.com says: Nevertheless cost per cab is: - router – ASUS WL-500G w. USB port ~$40 - Z010 EvDo modem ~$20 - unlimited in-network airtime […]
June 27th, 2007 at 3:46 pm
I think you guys are way too optimistic when you estimate costs…
http://yottablog.wordpress.com/2007/06/27/zapp-enters-on-the-wi-fi-market/
July 2nd, 2007 at 8:08 pm
Zapp also provides the service for the “business class” train cars… but the service really stinks! The internet works only when the train is stopped in a station. I’ll never get a Zapp modem, I’ll just stick to my 3G+ Orange PCMCIA data card, only 10 interruptions from Bucharest to Cluj!