The deal, for an undisclosed sum, will see Hotspot run as an autonomous division within Selection Services. The managing director of Hotspot, James Hind, will continue in his role under the new set-up.

Alan Cantwell, chief executive of Selection Services, said: 'By joining with Hotspot we can help (clients) to meet their wireless objectives while delivering on our commitment to evolve our business in line with market demands.'

Cantwell said the hotel and leisure industry is a particular target, as companies in the sector are constantly looking for new ways to increase footfall and occupancy. 'Businesses across the board now recognise the productivity benefits of Wi-Fi,' he said.

However, some more traditional fixed-line firms are not threatened by Wi-Fi. Neil Armstrong, products director of business ISP PlusNet said: 'Everyone uses Wi-Fi now and again for free web access when out and about. But it is not widely used for core internet business functions. We do offer Wi-Fi access to customers, through a partnership, but it ís more of an add-on.'