Liberty takes hotspot deal to resellers
Wi-Fi provider to give up to 20 per cent margin on access sales
Liberty Europe, a subsidiary of distributor Square 1 International, has joined a growing number of Wi-Fi hotspot providers that are turning to the channel.
Norwood Adam and BT launched channel offerings last year, and The Cloud started its channel programme last week.
"Property owners, such as hoteliers and restaurateurs, can make more money by boosting their core sales and also make a 30 per cent margin on access sold through their hotspots," claimed Barry Shrier, chief executive of Liberty Europe.
"The reseller also makes 20 per cent on access and a margin on installing or selling hotspot contracts."
Resellers will continue to make margin for three years from the hotspot contracts they sell, starting at 20 per cent in the first year, then falling to five per cent. They can sell contracts or install hardware and management software for improved margins, Shrier added.
Liberty hotspots are rented at £59 per month, with an optional £150 set-up fee, which gives resellers better commission. The firm also provides sales and marketing support to venues, as well as staff training.
"Selling vouchers is a good way to do things at this stage," Shrier claimed.
"There are 22,000 hotels in the UK, and about 1,000 are Wi-Fi-enabled. Then there are pubs and cafes. Even with a number of companies in the market offering hotspots, there is a lot of potential business for resellers."
However, Jess Thompson-Hughes, managing director of reseller React Technologies, said many hotels do not want to pay up-front set-up costs.
"We have just sold Aruba access points and switches to L-Zone [another wireless hotspot provider] and we have found hotels simply want a percentage of monthly revenues," said Thompson-Hughes.
"I don't think there is much money in single hotspots. Users want to be able to transfer access from one hotspot to another and get access as simply as possible."