Bus free Wi-Fi looks beautiful but how to make money

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Absrtact: At present, there are nearly 900 million public transport passengers nationwide. Free bus network Wi-Fi becomes a hot topic. So who's going to pay for free Wi-Fi? What is its business logic?

Earlier this year, virtual operator bus announced the investment of 1 billion yuan to build the country's largest public transport Wi-Fi platform, the end of the year before the completion of 150,000 bus Wi-Fi coverage. At present, and Huawei has completed 18 cities nationwide public transport Wi-Fi small-scale network testing, commercial imminent.

Beijing all the way hot companies also announced that more than 12,000 buses in Beijing have installed free Wi-Fi equipment, passengers simply download the relevant mobile phone applications and successfully registered, you can enjoy free public transport Wi-Fi.

There are nearly 900 million public transport passengers nationwide. Free bus network Wi-Fi becomes a hot topic. So who's going to pay for free Wi-Fi? What is its business logic?

A survey of Wi-Fi providers such as operators, bus companies, and virtual operators found that free bus Wi-Fi looked beautiful and its business model was still to be tested.

Bus free Wi-Fi three business models

Free Wi-Fi currently has two bright spots: first, if the implementation of free Wi-Fi full coverage of buses, each bus installed GPS navigation system, parking stations to increase the electronic display of public transport, convenient for the passenger waiting for inquiries; second, if the bus installed free Wi-Fi, the bus on the Internet, Traffic will no longer be a user's scourge.

But, the free Wi-Fi investment is huge, how does the operator recover the cost, realizes the sustainable development? Currently, the mainstream operators are testing water for the following three models.

1, "sell the Flow" mode

International is more popular is the forward charge.

Over the past few years, the country's many basic telecom operators choose to cooperate directly with the bus companies. In the first half of this year, a carrier and Nanchang public transport, Shanghai Cloud as a joint investment of more than 8 million yuan, installed in more than 1400 buses free Wi-Fi wireless internet equipment, and according to the relevant sources, "under the existing contract, the free period is tentatively 1 years."

Basic operators provide Wi-Fi network support, operating enterprises to provide applications (video, entertainment, games, etc.), through the flow of charges, this mode of operation in line with the operator's "traffic management" strategy.

But the survey found that the first payment model encountered 4 problems: one, the user Internet habits are free, difficult to change. Second, the user perception is not good, there is no interconnection, other operators can not verify the user, its third, each month (some regulations only 20 hours) free time limit; its four, the public transportation, the subway free Wi-Fi will and the operator's leading flow revenue to some extent conflict.

2, "sell advertising" mode

The Wi-Fi logo was also posted on hundreds of buses in Guangzhou's new-ear bus company since 2012. In the bus and convenience stores, airports and other places to deploy wireless network sites. Responsible for the operation of the project for the Lark Times Advertising Co.

When passengers log on to a wireless network called "Shanlink", they enter the "Flash network" of the Lark era. The Flash network creates revenue through various forms of advertising (e.g., high-end brand-tailored micro-movies, etc.).

Industry analysts believe that in this mode of public transport Wi-Fi, operators to provide all video, music, reading and other content can not be real-time, user freedom of choice is not strong. Perhaps "Advertisers are very welcome, but the user experience is uncomfortable." "So it's slow to spread across the country.

3. Model of Product

Wi-Fi is completely free for users and does not have time and traffic restrictions. Passengers download apps, register as their users, through a one-stop landing, selling Wi-Fi derived mobile internet products, through the game consignor, by the industry more optimistic model.

Shambo, vice president of the bus, said in an interview with the communications daily that the user's needs are free and "rub the net". In the free Wi-Fi aspect, the bus puts forward the idea for "Net Change Net":

First, the integral Exchange Mode. That is, by providing an integral wall similar mechanism, the user's behavior in the Wi-Fi network (including access to Internet behavior, game behavior, marketing activities, etc.) will be recorded, users get points can be exchanged for the provision of Wi-Fi public network traffic;

Second, through the O2O, line online under the combined mode. In the bus Wi-Fi environment, you can mobile phone to get the bus site lbs push, you can in the same bus "game against." After leaving the bus, users can still play games or socialize on the platform.

Shambo analysis that, compared to rigid advertising and other traditional channels, the ability to show the game to become mobile internet proved to be feasible.

Beijing Hot Spot Chairman Chichimin said that the company is working with the media, electric dealers, local service providers and other customers to contact, through O2O life services and mobile applications distribution, build the business model of bus Wi-Fi, for passengers to travel to provide richer, more practical, more user-friendly services.

The "Product" model is a good solution to the user's most sensitive traffic problems, enterprises through the game to become available through the app for mobile internet access. However, the entry threshold is not low, for example, users can only use mobile phone number or ID card registered real name recognition, not access to the virtual operator licensing enterprises, can only choose to cooperate with the licensing enterprises. The author learned that the virtual operator bus online is the product of the first "crab eating", the current platform is being tested. Whether you can achieve the desired objectives, the market needs to test.

Bus free Wi-Fi will face three major challenges

Free Wi-Fi looks beautiful, but still faces three big challenges: business model, user experience, and uncertain return on investment.

1, let the user pay no play

BEIJING, Shanghai, Guangzhou and Hangzhou and other cities have tried to access free Wi-Fi in public places, but are caught in the difficulty of login, poor signal, slow speed of the difficult bureau. Foreign free Wi-Fi, most of the government to pay, unified planning, and China's urban Wi-Fi, Hangzhou is the number of Chinese media to do, Shanghai, Beijing, Wuhan, respectively, because of different operators to do. Each enterprise service standards are different, user landing interface is not unified, user experience is not very ideal.

In addition, such as Internet cafes, cafes and other public places, free Wi-Fi to bring convenience, as a result of the use of public networks, but also caused people to worry about security.

2, subject to network coverage of operators

Ericsson China chief market Officer Changgang in an interview with the author of the analysis that in the 4G network, operators provide Wi-Fi may be free. Therefore, the free Wi-Fi will be greatly reduced.

If the virtual carrier's utility base operator's 4G network is online, it will be subject to network coverage. "The virtual operator is not Wi-Fi, and in its mobile applications, once the network has problems, the user experience will be affected." Changgang said.

3. How long can "burn money" last?

This July, the Chinese media and Huawei cooperation 100,000 bus, in the next 3 years will have contracted exclusive Wi-Fi right to operate the city. The short-term will be in the domestic first-tier cities and capital cities to deploy between 10,000-50,000 units.

The author learned that the "bus online" "Mywi-fi" (Huawei Terminal provided) will be formally tested on September 30 commercial, initially it will be in Beijing, Guangzhou, Shenzhen and other major cities to achieve 5,000 car pilot coverage, and then expand to 30 cities nationwide.

Public transport free Wi-Fi upfront investment or quite large, car routers provide shopping malls four letter company to provide the author quote show: Support 3G network car reason Price in 2000 yuan, and Support 4G network reason in 3000 yuan. Plus labor costs, in Beijing, for example, a bus hardware cost of more than 4,000 yuan, according to Beijing has 12,000 bus installed to calculate, as of now, the bus Wi-Fi hardware cost reached 48 million yuan, which is not the day-to-day maintenance and to the operator to purchase traffic costs.

One of the domestic Wi-Fi operators revealed that the public transport free Wi-Fi users in the early "pay" is not realistic, bus companies can not pay for it, Wi-Fi operators in the early investment, the cost recovery period is longer. After the virtual operator bus has superimposed the mobile communication service ability, can realize the profit in 35 years, is worth looking forward to.