Toshiba puts itself on the hotspot

Vendor looks for resellers to push low-cost public wireless hotspot product

Toshiba is jumping on the hotspot bandwagon by launching a low-cost public wireless hotspot product and is looking to train and accredit resellers to sell it.

Recent research has led analysts to predict that wireless hotspots could be the next big thing for IT, because of the take-up of mobile working.

The wireless LAN, aimed at businesses such as cafes and restaurants, will cost about £399. Toshiba hopes to have 2,500 hotspots in place by July, and 5,000 in the UK by 2004.

Hotspot owners can sell vouchers for £5, giving customers network access for 24 hours.

Andy Bass, general manager of Toshiba's computer systems division, said: "We are bringing low-cost public Wi-Fi access to the marketplace."

He added that resellers can make money by installing the hardware and will take a share of the revenue when a customer uses the network.

Revenue will be split between the hotspot owner, Toshiba and the reseller, although Bass did not give details of the breakdown.

Resellers will sell, install and maintain the hotspot, while Toshiba will support end-users with integrated billing and helpdesk support.

Bass said Toshiba has already trained 12 VARs, and believes the product could appeal to as many as 60. The firm is looking to accredit new partners in the area. "We are going through a programme of re-accreditation," he said.

US market researcher Future Concepts has predicted that in Europe almost 800,000 hotspots will be installed by 2007, although analyst IDC has claimed this figure could be nearer 32,500 (CRN, 27 May) in western Europe.

Future Concepts said the busiest hotspots are likely to be at business hotels and airports, but warned hotspots will have to capture grass-roots support to succeed.

"Unless hotspots manage to inspire enthusiasm among subscribers, the hotspot industry could suffer the same fate as e-commerce at the turn of the millennium, where vendor enthusiasm far outstripped market acceptance," said Daniel Sweeney, the author of Future Concepts' report.