Metrinomics: WOSP, Not WISP

BERLIN -- The new report to be published by Berlin based market research company Metrinomics, offers a concrete business model for WLAN providers to conquer the SME Market in Europe, arguing that WISP's should seriously consider becoming WOSPs: Wireless Outsourced Service Providers.

Announcing the report launch, Metrinomics CEO Hans-Jürgen Schmolke said: "To date, WLAN service provision has typically been made available as a 'value add' to customers of bars, cafes, hotels and restaurants". "These types of public WLAN business models are being increasingly thrown into doubt by market gurus and providers alike. Providers have taken their eyes off the ball by concentrating almost solely on the 'Latté Zone' hotspot market to the detriment of other equally viable market segments like the SME market."

The report, "Profitable WLAN Services for SMEs", looks to solve WISP problems by developing a business plan for WLAN providers in the European SME market. The good news is that results show significant business opportunities do exist in this steady market for the right WLAN services. While new wireless operators have been targeting the mass market in airports, hotels and restaurants, the report argues that the SME market (with its loyal and churn resistant customer base) provides a comparatively more stable and secure WLAN market opportunity.

31% of enterprises questioned intend to launch WLAN services within the next 6 months; while 44% have yet to decide on a course of WLAN implementation. Where WLAN investments have been planned or are being considered, more than 75% will be in an office environment. 61% of SMEs questioned for the report indicated 11 Mbps access within the enterprise and access on the move as being their key requirement. There is no immediate need for 54 Mbps WLAN services, as multimedia and video type applications have not sufficiently entered the Ethernet based SME office environment.

Although existing billing, roaming and security concerns might prevent a number of SMEs making the WLAN leap until they have been fully resolved, Metrinomics claims that the report's finding support the development of a re-aggregated value proposition for turn-key WOSP solutions in the European market:

"A significant business opportunity exists for WLAN providers in the European SME market. The results show that SMEs are very receptive towards outsourced WLAN subscription based services - partly because they consider WLAN procurement, installation and maintenance to be specialised IT functions outwith their own IT capabilities."

Metrinomics GmbH